top of page
  • Madeline Eby

How much is a million-dollar commercial insurance policy?

image of truck with text over lay "How Much Is A Million-Dollar Commercial Insurance Policy?"

The cost of a million-dollar commercial truck insurance policy can vary depending on a number of factors, such as the type of truck, the driver's experience, accident history, and the coverage options selected. It can also depend on the location and the insurance company providing the policy.

What Does It Mean To Have $1 Million in Liability Insurance?

Having $1 million in liability insurance means that your insurance coverage will provide financial protection for up to $1 million in damages in the event of a covered loss. Any additional expenses exceeding this amount will be the responsibility of the policyholder to cover.

The average cost of trucking insurance

The cost of truck insurance can vary significantly depending on the insurance provider and the type of coverage selected. For example, general liability insurance typically ranges from $750 to $7,000 per year, with a coverage limit of around $1 million. Liability insurance specific to trucking, known as trucking liability insurance, can cost anywhere from $2,500 to $4,000 per trucker and covers a minimum of $750,000 per driver. Bobtail insurance, which covers a truck when it is not hauling cargo, typically has an annual premium of around $450 with a coverage limit of $1 million. Lastly, physical damage insurance, which covers the cost of damage to the truck, does not have a set minimum coverage and the premium rate is based on a percentage of the truck's value.

What factors affect the rate of commercial auto insurance?

Similar to personal auto insurance, the insurance company calculates the premium for commercial vehicle insurance based on various factors, including the type of commercial vehicles owned, the number of vehicles, the frequency of use, and the driving records of the business owner and employees. Additionally, the premium is also influenced by the coverage options chosen, industry risks, and policy limits. It is recommended to speak with a licensed insurance agent over at CarrierHQ to determine the best coverage options.

The type of coverage chosen

The type of auto coverage selected also plays a major role in determining the cost of commercial auto insurance. For example, liability coverage is required by law in most states and provides minimal protection in the event of an accident caused by the business or its employees. This is the most cost-effective option, but it only covers physical damage to other vehicles or property damage and medical expenses from bodily injury to another party. Comprehensive coverage, on the other hand, includes protection against theft, and damage from weather, vandalism, or fire, in addition to liability coverage, but it comes at a higher cost. Additional coverage options such as roadside assistance, rental reimbursement, or collision coverage can also increase the premium.

Industry risks

The industry in which the business operates and the way the vehicles are used for business purposes can also affect the cost of commercial auto insurance. For example, a food truck that is frequently on the road may have higher rates than a stationary business. Similarly, construction vehicles that operate in dangerous job sites may also be subject to higher rates.

Policy limits

The coverage limits selected also impact the cost of commercial auto insurance. Higher limits provide broader protection but also come at a higher cost.

Without specific information on the truck and the coverage options, it is difficult to provide an accurate estimate of the cost of a million-dollar commercial truck insurance policy. It's advisable to speak with a commercial truck insurance agent, like us at CarrierHQ, to get a quote for your specific truck and coverage needs.

Coverages at CarrierHQ

Over at CarrierHQ here are coverages we offer. Get a quote today or reach out to a CarrierHQ representative with any questions you may have!

  • General Liability

  • Hired Auto Liability

  • Auto Liability

  • Cargo Insurance

  • Trailer Interchange

  • Uninsured/Underinsured Motorist Coverage

  • Property Damage & Bodily Injury Liability Coverage

2,551 views0 comments
bottom of page