5 Important Things that May Affect Your Semi Truck Insurance Cost

by Sudarsan

It’s a good time to be a trucker. People need goods, and trucks work most efficiently to transport goods thousands of miles across the country. Furthermore, you can make some good money by owning a trucking company or even just a truck. 

Trucking companies cost money to start. You need the inventory of the trucks and trailers along with a maintenance plan for each truck. You need to keep parts, tires, and interior current. 

Plus, you need insurance and a lot of it. 

Because of the liability involved with trucking along with the valuable cargo, semi truck insurance costs a great deal. Keep reading to learn everything you need to know about semi truck insurance cost. 

Semi Truck Insurance Cost Varies

The number of cars on the road have decreased over past years, but the number of semi-trucks have increased. If you’re among those who want to open your own trucking business, among many other questions you will want to know, “How much is truck insurance?” 

The answer will vary from $600 to over $900 a month depending on a variety of factors. Each trucking insurance company looks into the type and condition of your truck, the type of cargo you carry, and even the routes you take as they consider your commercial truck insurance cost. 

Here are five different factors that affect your semi truck insurance cost. 

1. Type of Insurance

Your total insurance cost depends heavily on the type of insurance you select or need. Here are a few options of insurance for trucking companies: 

  • Primary liability insurance: If your driver causes any damages while they’re driving, primary liability insurance covers those damage. It is the most expensive of the insurances listed here, ranging from $5,000 to $7,000 a year. 
  • Physical damage insurance: If your truck incurs damage from vandalism, theft, extreme weather, and accidents with other vehicles, physical damage insurance covers that damage. This costs ranges from $1,000 to $3,000. 
  • Occupational accident coverage: If you sustain any work-related injuries, occupational accident coverage will cover lost income and medical bills. Expect to pay between $1,000 and $2,000 for this coverage. 
  • General liability: Primary liability insurance will not cover everything, and thus you can get general liability. This insurance is like a blanket that covers what primary liability and physical damage will not cover, such as injuries or property damage your truck may cause. It will cost between $500 and $600. 
  • Umbrella: Umbrella insurance is one more policy that makes sure you have workers’ compensation, general liability, and auto liability covered. It will cost between $500 and $700. 

2. Type and Age of Truck

The type and age of your truck will also affect your insurance costs.

Newer trucks cost more to repair, with their computers and electronics that outweigh the mechanical features of older trucks. Thus, they cost more to repair and come with more costly insurance. 

Plus, newer trucks cost more to replace. Thus an insurance company will charge you more to replace and protect your truck. 

The type of truck factors into insurance costs as well. For example, trucks with more mechanical features such as dump trucks will cost more than your basic semi truck with a flatbed trailer. Trucks with dumping features have more parts that can break or malfunction, causing damage or injury, and thus they cost more to insure. 

3. Type of Cargo

What you haul plays into the cost of your insurance as well. The more expensive your cargo, the more you can expect your premium to cost. 

Furthermore, if you’re handling a fragile or perishable load, your insurance costs will go up. Your company is financially responsible for the cargo once the truck goes on the road. So your insurance should match the value of your cargo. 

The cargo itself needs to be insured. So the more valuable your cargo, the more insurance you need. For example, if you’re hauling a load of potato chips, your insurance won’t cost as much as if you’re hauling a load of lumber. 

The liability of the cargo matters as well. Cargo that can cause a potential environmental hazard will cost more. Thus, if you’re hauling a tanker of milk, your insurance will not cost as much as a tanker of petroleum.

Weight is a factor as well.

A driver has a much more difficult time stopping a heavier truck than a lighter truck. Thus, heavier trucks come with more liability and need more insurance. They can cause more damage and mayhem. 

4. Location and Routes

Your company’s location and your drivers’ routes will affect your semi truck insurance cost. You can expect a higher premium if you’re located in an urban area with the potential for more costly accidents than if you’re located in a rural area with low traffic. 

This only makes sense. Trucks operating in the city have different risks than trucks operating in rural areas. A truck that crashes on a rural job site will cost far less than one that crashes during rush hour on the interstate. 

Your coverage should match the potential liability of the route. 

5. Your History

A driver’s driving record plays a large role in the cost of insurance. For example, if your driver has a record of DUIs, running stop signs, and excessive speed, you will pay more for that driver’s insurance. 

Also, if you or your driver have a history of many claims, your insurance cost will go up. Every time you file a claim, you’re making your insurance company work more. Thus, they will raise your rates.  

Control Your Semi Truck Insurance Cost

Your semi trucking insurance cost will vary depending on several factors. To acquire the least expensive insurance, control the variables that you can. Seek routes that are less dangerous and make sure your drivers have a clean driving history. 

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