As a trucker, you might be bombarded with fines, fees, taxes, and daily operating costs that add up quickly. At the top of the list is your high-dollar insurance premium. While you might have found a few ways to cut some of the other costs, have you figured out how you can get the cheapest trucking insurance and still have the coverage you need?
You may not believe it, but most insurance companies really do want to help you find the best rates. So, knowing what they look for will help you get more for your money.
What Is Commercial Trucking Insurance?
The cheapest trucking insurance isn’t always in your best interest if that’s the only factor you’re focused on. Here’s why.
Commercial insurance for trucking companies is designed to protect your business in the event of an accident. But if you don’t have adequate coverage, you can suffer a huge loss.
Trucking insurance covers your truck and the products or persons you transport, depending on the type of policy you choose. So, you should consider all of the possible scenarios in which your trucks could cause damage that can’t be paid out-of-pocket.
The right commercial insurance for trucking companies can help you hold on to your business even after a major accident.
How Does Commercial Trucking Insurance Work?
Finding commercial trucking insurance companies that provide the protection you need can be tricky. First, you’ll need to understand how the insurance works, what your options are, and the legal requirements involved.
Commercial insurance for trucking companies provides different policies depending on the type of vehicle, driver experience, driving record, and age or condition of the vehicle. It provides liability coverage.
The premiums are high because of the risks associated with this type of business. Big rigs can cause a lot of damage and repair, plus replacing them is expensive.
The insurance also covers damage to public property and injuries to other individuals involved in the accident. So for everyone’s protection, the FMCSA requires both public liability and property damage coverage.
Minimum limits of liability according to FMCSA are as follows:
Vehicles Hauling Non-Hazardous Freight
- $300,000 vehicles under 10,001 pounds
- $750,000 vehicles over 10,001 pounds
Vehicles Hauling Hazardous Freight
- $1,000,000 for-hire and private carriers hauling oil
- $5,000,000 for-hire and private carriers hauling other HAZMAT items
You’ll need proof of public liability insurance to get your operating authority. Depending on your business needs, you may have to seek out other kinds of coverage, as well.
What Kind of Insurance Do I Need for a Trucking Business?
Each insurance provider offers different types of coverage. But most standard commercial trucking insurance companies provide coverage for the following:
- Dump trucks
- Semi-trucks
- Flatbeds
- Tow trucks
- Box trucks
In addition to the liability and physical damage discussed above, you may want to explore the following options:
Non-Liability Trucking Insurance
This insurance provides coverage in the event of an accident while you’re using your truck for non-business reasons.
Cargo Insurance
This insurance protects you from financial loss if the freight you transport is damaged in an accident or by other events such as bad weather, highway conditions, theft, customs rejection, or abandoned cargo.
Bobtail Insurance
Bobtail insurance is optional for owner-operators who have liability insurance. If you are running under a motor carrier’s authority, bobtail insurance provides liability coverage for you after a load is delivered.
Trailer Interchange Liability
This coverage protects any trailer pulled by your semi-truck if a trailer interchange agreement is in place. It covers non-owned trailers against fire, collision, theft, or explosion.
Should I Shop Around for the Best Prices?
As with anything you purchase for your business, it’s wise to compare prices and options. In your search for the cheapest trucking insurance, remember, cheaper is not always better. To save a few bucks now, you may risk paying out-of-pocket later because your coverage was inadequate.
One popular resource for finding the best rates and coverage is Trucker’s Affiliate Program (TAP). These commercial trucking insurance specialists have partnered with Cornerstone Insurance with the goal of helping truckers get the best deals for their business needs.
6 Steps for Finding the Cheapest Trucking Insurance
To find the best coverage for your trucking business, tackle the process with these six steps.
Step 1: Compare Quotes
You can begin your search for commercial insurance for trucking companies by comparing providers, coverage, and rates online.
Most companies will give you a free, no-obligation quote. Take time to compare the quotes, ask questions, and make sure you understand the exact coverage they provide for the price quoted.
To avoid the hassle, Trucker’s Affiliate Program (TAP) is a great place to begin your search. They are licensed in 48 states and have access to the information you need to get the right coverage for your trucking business.
Step 2: Ask for Discounts
How can I make commercial insurance cheaper? With some insurance companies, you may qualify for a discount if you’ve had a CDL for at least two years.
Owner-operators may also qualify for a business experience discount if they have been in business for more than three years.
Truckers who have maintained insurance coverage for the last year can ask for a discount on next year’s premium.
Step 3: Pay for Yearly Premium Upfront
It’s hard to let go of a large amount of cash upfront, but it can save you money in the end. Many commercial trucking insurance companies offer discounts to policyholders if they pay their annual premium in a lump sum. You can save up to 15 percent by using this payment method.
Step 4: Tailor Policy
You don’t always have to choose the highest policy limits offered. Tailor your policy based on your company’s needs at the time. If your business grows, you can upgrade the coverage then.
To ensure you get the right amount of coverage at the lowest price, talk to a trusted agent. Ask other local truckers who their providers are. Also, you can compare prices to find the cheapest state for trucking insurance. This is especially helpful if you work out of several states.
Step 5: Opt for Higher Deductibles
To make commercial insurance cheaper, think about choosing a high deductible. This option will keep your monthly payments lower.
A high deductible can also mean lower yearly premiums. The only downside is that you may have to pay out-of-pocket if you’re involved in an accident.
Step 6: Always Review a Renewal
When you receive the policy renewal materials, take time to review them carefully. If your business has grown or you’ve changed the type of freight you haul, your insurance needs might change, as well.
Many insurance companies increase their rates every year. So if your premium is higher this year, shop around again. The chance of finding lower rates is worth the time it takes to compare.
Find the Cheapest Trucking Insurance the Easy Way
Understanding commercial trucking insurance is not easy for anyone. It is a complex, but necessary part of the trucking world.
If you are looking for insurance for the first time or need to change your coverage, there is an easy, reliable way to get it done. Let the insurance specialists with the Trucker’s Affiliate Program (TAP) help you find the right insurance at the right price.
FAQ
Commercial vehicles are expensive to repair or replace and they can cause a lot of damage in an accident. Insurance premiums are based on those risk factors.
Not all commercial insurance policies allow personal use. Speak with a licensed insurance agent to determine what coverage works best for you.
This depends on the structure of your commercial auto policy. Commercial auto policy is typically set up by the business owner to provide coverage to vehicles used by the company. There are 3 basic parts of a commercial auto policy: physical damage, liability insurance, and optional add-on endorsements.
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