How much is insurance for a trucking company?
If you are thinking about starting a trucking company, you will need to get commercial truck insurance. The cost of insurance for a trucking company varies depending on a number of factors, such as the type of trucks that you have, fleet size, company size and multiple more. Keep reading to learn more about how much commercial truck insurance and cargo insurance will cost for your trucking company.
What is a Commercial Carrier Policy?
A Commercial Carrier Policy, also referred to as a motor carrier policy, is a specialized insurance policy for the trucking industry. If your trucking business transports any type of goods, from cargo to livestock, then a Commercial Carrier Policy is required. This policy covers various areas, including auto liability, physical damage, trailer interchange, and more.
It replaces the traditional truckers' policy, to adapt to the changing demands of the industry, and is suitable for all types of motor carriers, including for-hire, private, or combined.
To have auto liability insurance, it will protect the company in the event that one of its drivers causes an accident. Cargo insurance will protect the company's cargo in the event that it is lost, damaged, or stolen.
What is the average cost of commercial truck insurance?
The price of commercial truck insurance can vary based on individual needs. Owner-operators with a motor carrier lease can anticipate paying between $3,000 to $5,000 per year, whereas those with their own authority could expect to pay anywhere from $9,000 to $12,000 per truck annually. To get the most affordable commercial truck insurance, consider comparing quotes from multiple insurance providers.
How much does motor carrier insurance cost?
Motor carrier insurance is one of the most significant expenses for a motor carrier business. A new authority can expect to pay around $12,000 per year for a liability policy worth $1,000,000 and a $100,000 cargo policy.
What kind of insurance do I need for a trucking business?
It is important to determine your specific needs as this type of insurance is just the basic coverage.
Your trucking business may require different types of commercial insurance before starting operations, including primary auto liability, general liability, physical damage, bobtail, motor truck cargo, rental reimbursement, trailer interchange, medical payment, and uninsured/underinsured motorists.
What amount of cargo insurance do I need?
The amount of cargo insurance you need will depend on the nature of the cargo you are transporting. You will require a minimum of $750,000 to $5 million for bodily injury and property damage liability, as well as a minimum of $5,000 per vehicle and $10,000 per incident for cargo liability. The type of cargo will determine the specific minimum amounts required.
Factors that affect the cost of insurance for a trucking company
Several factors can impact the cost of insurance for a trucking company include:
The larger the fleet, the higher the premium as it increases the insurance company’s risk.
Type of Cargo
The type of cargo being transported can affect the cost of insurance, with hazardous materials typically costing more to insure.
Driver experience and/or Driving History
Experienced drivers with a clean driving record can lower insurance costs to inexperienced drivers or those with a history of accidents.
The higher the cover limits, the higher the premium.
Insurance costs can vary by region and state, with higher costs in areas with higher rates or higher medical costs.
The amount of deductible you choose will impact your insurance costs, with a higher deductible lowering the premium but increasing your out-of-pocket expenses in the event of a claim.
Other Factors to Consider
Routes that you plan to run
These are some of the main factors that can impact the cost of insurance for a trucking company, and it is recommended to always consider each and every factor when purchasing insurance.
We given you a lot of information to think about but it never hurts to learn to know a base price based off of your fleets needs. It's always encourage for a company to do their own research on commercial auto insurance than to skip this step in the process. Get a free quote, at CarrierHQ our free online quote can help you decide what works for your fleet. To start today with a visit to our online portal or give us a call; (866) 621-4145. Our Client Success team is always happy to answer your questions!
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