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    State Farm Commercial Truck Insurance Review

    State Farm Commercial Truck Insurance Review

    Do you want to start a trucking business? Before looking into semi-trailer trucks, we suggest shopping for insurance policies. The state requires a minimum liability coverage of $750,000 to $1,000,000, so uninsured trucking service providers cannot operate even if they have a private fleet. Remember: hauling underinsured has several legal and financial consequences.

    Are you planning on investing in commercial truck insurance? State Farm truck insurance stands among the most highly recommended insurers in the country. They offer extensive coverage. Familiarize yourself with their strengths and weaknesses as an insurer and see if they address your insurance needs.

    State Farm’s History

    Farmer and insurance salesman ​​George Jacob “G.J.” Mecherle founded State Farm in 1922. The company shared similar values with rural banks during their founding years. George initially focused on providing financial protection to local clients, such as fellow farmers and small-scale haulers. State Farm strived to be a “good neighbor” that helped during troubling times.

    The institution’s genuine dedication to quality, reliable service helped it grow and expand its services nationwide. Today, they insure more real estate and vehicles than any other local insurance provider. Despite State Farm’s exponential growth, however, it still prioritizes the well-being of its policyholders.

    The Basics of State Farm’s Commercial Truck Coverage

    Do you find yourself on the fence about getting State Farm commercial vehicle insurance? We can help you reach an informed decision! Go through the basics of a standard State Farm commercial auto insurance to gain first-hand insights into their coverage options, insurance terms, and average premiums.

    When Is Commercial Truck Insurance Necessary?

    Although commercial truck insurance has a relatively straightforward definition, first-timers might have trouble wholly understanding its legal implications. 

    For instance, truckers who haul cargo know that truck insurance is necessary. However, business owners that only use their vehicles to provide non-hauling services or carry tools may not understand their insurance requirements.

    You may need to apply for commercial truck insurance if you:

    • Have employees that operate an owned or non-owned vehicle regularly
    • Haul/transport cargo for paying clients
    • Use your motorized vehicle to provide professional services for a fee
    • Deal with specialized cargo, which increases your overall liability risks
    • Carry a significant amount of tools or cargo in your vehicle for daily operations

    Coverages That Can Come With State Farm’s Commercial Truck Policy

    State Farm commercial vehicle insurance policyholders have several coverage options. While diversity enables truckers to create customized policies, first-timers may get confused navigating the different coverages.

    Luckily, we can help. Jump-start your comparison review of State Farm truck insurance by going through the different coverage options that they offer:

    • Liability: Liability coverage is the most basic form of insurance. It covers the financial consequences of third-party bodily injuries and property damages stemming from various road accidents. Most states require truckers to carry minimum liability coverage of $750,000.
    • Bodily Injury: As its name suggests, the bodily injury clause of liability coverage pays for third-party injuries sustained from road accidents.
    • Property Damage: Property damage also falls under liability coverage. It primarily provides liability protection if you or your truckers cause third-party property damage mid-operation.
    • Uninsured/Underinsured Motorists: You can file a claim for uninsured/underinsured motorists if you or your trucker get involved in a road accident wherein the at-fault party has insufficient coverage.
    • Medical Fees: The medical fees clause covers the injuries your truckers’ passengers sustain following road accidents. This coverage is a must if your truckers regularly drive with a helper.
    • Collisions: Collision coverage pays for the damages an insured vehicle sustains from a road collision accident. Consult your State Farm agent on the specific conditions of a “collision.”
    • Comprehensive: Comprehensive insurance typically covers the damages sustained from non-collision road accidents, such as hail, vandalism, theft, and fire.

    Discounts That State Farm Offers On Commercial Truck Insurance

    Although State Farm does not have the cheapest truck insurance premiums in the market, they offer plenty of chances for truckers to minimize their premiums. 

    Generally, insurance premiums spike as insurability decreases. If you can prove that you run a profitable trucking service business with skilled, highly trained drivers, State Farm can shave off a few grand from your annual rates.

    Look into the following State Farm truck insurance discounts, and premium reduction offers:

    • Accident-free and good driving savings
    • Defensive driving course discount
    • Good driver training discount
    • Multiple auto savings
    • Multiple line savings
    • Steer Clear program discount

    State Farm’s Financial Strength

    Financial strength plays a crucial role in the long-term success of any insurance provider. Insurers need sufficient funds to process claims, acquire new clients, retain existing clients, and, of course, pay for approved claims. 

    Remember: bankrupt insurance companies reserve the right to reject claims. In the worst case, insurers with underwater assets may deny claims by the hundreds if they no longer have sufficient funding. Avoid unestablished insurers that have not yet demonstrated financial reliability.

    Does State Farm have a financially strong background? The answer: yes! The company has been approving various claims for nearly a century now. Considering that they carry the most home and auto insurance clients today, it’s no surprise that they have already paid billions in claims. 

    For a more accurate assessment of their financial strength, check out the financial ratings provided by these recognized independent agencies:

    S&P Global Rating

    State Farm received A++ from S&P Global Ratings, the highest rating possible.

    A.M. Best

    A.M. Best gave State Farm a AA rating for their reliable, streamlined claims processing.

    The Benefits of Working With State Farm

    There are dozens of commercial truck insurers in the market; why should you go with State Farm truck commercials? They rank among the most reputable insurers for several reasons, including:

    • Customer Service: State Farm semi-truck insurance policyholders enjoy top-notch customer service. You can talk to an agent through their hotline 1-800-STATEFARM or their online database. For new applications, truckers can connect with a certified agent. State Farm has 19,000+ agent offices across the country, so expect quality service no matter where you live.
    • Claims Resolution: Although State Farm typically takes two to three weeks to process claims, they have a smooth, streamlined claims resolution system. They ranked among the top for claims resolution satisfaction in the most recent J.D. Power’s 2020 U.S. Auto Insurance Study. Clients liked the high likelihood of approved claims.
    • Statewide Availability: State Farm is a well-known truck insurance provider with more than 19,000 agent offices in 47 states. Their insurance products are only unavailable in Wisconsin, New York, and Massachusetts. However, their 24-hour service representatives share alternative options with applicants outside the covered service areas. 
    • Additional Coverages: State Farm commercial truck insurance policyholders have access to dozens of additional coverage options. They go beyond auto insurance. Contact their agents to learn more about State Farm food truck insurance, boat insurance, motorhome insurance, and motorcycle insurance.

    Additional Coverages

    For truckers, a well-rounded insurance strategy goes beyond standard liability coverage. As mentioned, trucking service providers have varying insurance needs, so a strategy solely centered on the standard State Farm semi-truck insurance yields negligible benefits.

    Fortunately, State Farm truck commercial insurance policyholders have access to several other additional coverages. See which of the following coverages applies to your business:

    • Boat insurance
    • Bobtail insurance
    • Cargo insurance
    • Car insurance
    • Food truck insurance
    • Motorcycle insurance
    • Motorhome insurance
    • Off-road vehicle insurance
    • Small business insurance

    Frequently Asked Questions

    Do you still have unresolved questions about getting commercial truck insurance from State Farm? Let’s shed some light on the topic. Here are some questions that truckers have when applying for State Farm commercial vehicle insurance:

    Which insurance is best for trucks?

    The most reputable, financially strong truck insurers across all states include Progressive, The Hartford, Sentry, CoverWallet, and State Farm truck insurance. Explore their policies and assess which ones suit your needs.

    What is high truck insurance?

    State Farm offers commercial auto insurance for high-risk applicants. These policies suit truckers who have already filed claims before, still carry unresolved traffic violations, or haul high-risk cargo regularly.

    How much is full coverage on a new truck?

    The average cost to insure a brand-new commercial truck costs around $1,420 to $1,530, depending on where you live. Surveys show that Rhode Island, Massachusetts, and Connecticut have the highest rates. On the other hand, truckers from Wyoming, Nebraska, and Iowa pay 100% less for the same coverage.

    Why is commercial truck insurance so high?

    Market trends heavily affect truck insurance premiums. Generally, insurers charge more to cover their losses from approving claims, cover the risk of increasing road hazards, and combat inflation rates.

    How much money do you need to start a trucking company?

    Business registration and documentation costs around $6,000 to $15,000. On top of these fees, you will also have to pay for your hauling equipment. Although brand-new commercial trucks cost around $70,000 to $150,000, leasing from a motor carrier instead minimizes the necessary startup costs.

    When it comes to commercial truck insurance, State Farm ranks among the best options for business owners. They have a financially strong background, follow a streamlined claims filing process, and offer extensive coverage options. You can modify their policies however you want.

    Despite this, do not limit yourself to State Farm commercial truck insurance. While they offer some of the best policies in the market, specialized truckers might not find their coverages suitable for their specific insurance needs. Explore your options.

    Explore our comprehensive review of Progressive's Commercial Truck Insurance and discover how it compares. Make informed decisions for your commercial truck insurance needs based on our insightful analysis and insights.

    Do you still find the concept of truck insurance confusing? Assured Standard has you covered! Check out our resources page for more information about truck insurance.

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