What Does Average Semi Truck Insurance Costs For Owner Operators?

Starting a trucking business is an exciting venture that comes with numerous benefits, including being your own boss, setting your own schedules, and making more money. However, one of the most significant expenses you'll encounter as an owner-operator is insurance. In this blog, we'll discuss how much insurance costs for your own authority in trucking.

Before delving into the specifics, it's important to understand what "own authority" means in the trucking industry. Essentially, it means that you have your own operating authority from the Federal Motor Carrier Safety Administration (FMCSA), which allows you to operate your own commercial trucking business.

When it comes to insurance, there are a few different types of coverage that you'll need to consider. Here are some of the most common:

Primary Liability Insurance

This is the most important type of insurance for trucking businesses. It covers damage to other people's property or bodily injury that you or your driver cause while operating the truck. Primary liability insurance is required by law and typically costs between $3,000 to $5,000 per year.

Physical Damage Insurance

This type of insurance covers damage to your own truck in the event of an accident, theft, or vandalism. The cost of physical damage insurance depends on several factors, including the age and value of your truck, your driving record, and the deductible you choose. On average, you can expect to pay between $1,500 to $3,000 per year.

Cargo Insurance

If you're hauling goods for other companies, you'll need cargo insurance to protect against damage or theft of the cargo. The cost of cargo insurance varies depending on the type of cargo you're hauling and the coverage limits you choose. Typically, you can expect to pay between $1,500 to $3,000 per year.

Bobtail Insurance

Bobtail insurance covers you when you're driving your truck without a trailer attached. This type of insurance is optional but may be required by some motor carriers. The cost of bobtail insurance depends on several factors, including your driving record and the type of truck you're driving. On average, you can expect to pay between $1,000 to $2,000 per year.

The cost of insurance for your own authority can vary widely depending on a number of factors, including:

The type of trucking you do

Insurance companies will take into account the type of cargo you're hauling and the distances you're traveling when calculating your insurance premiums. For example, if you're hauling hazardous materials or driving long distances, you may need to pay more for insurance.

Your driving record

Insurance companies will look at your driving record to assess your risk level. If you have a clean driving record with no accidents or violations, you may be able to get lower insurance rates.

The value of your equipment

The value of your trucks and trailers can also affect your insurance premiums. If you have newer, more expensive equipment, you may need to pay more for insurance.

The amount of coverage you need

The more coverage you need, the higher your insurance premiums will be. It's important to make sure you have enough coverage to protect your business, but you don't want to pay for more coverage than you actually need.

Your location

Insurance rates can vary depending on where your business is located. If you're in an area with higher accident rates or higher crime rates, you may need to pay more for insurance.

The cost of insurance for your own authority in trucking depends on several factors, including the types of coverage you need, the value of your truck, your driving record, and the coverage limits you choose. However, as a general rule, you can expect to pay between $7,500 to $15,000 per year for insurance as an owner-operator. It may seem like a significant expense, but having adequate insurance coverage is essential for protecting your business and ensuring your financial stability in the event of an accident or injury.

Overall, the cost of insurance for your own authority in trucking can range from a few thousand dollars per year to tens of thousands of dollars per year. It's important to shop around and get quotes from multiple insurance companies, like CarrierHQ to find the best coverage and rates for your business. You may also want to consider working with a knowledgeable insurance agent who can help you navigate the complex world of trucking insurance and find the best options for your specific needs.

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