Commercial Truck Insurance: What is it and what does it cover?

What does commercial truck insurance cover?

Commercial truck insurance caters to the unique needs of owner-operators, fleet owners and individual truckers. Depending on the policy, it covers:

Bodily injury and property damage you cause to others
Your truck if damaged from covered accidents or events
Optional coverages like medical payments, personal injury protection (PIP) and uninsured/underinsured motorist

“Commercial vehicles are out on the road much more often and for longer hours per day,” says Tyler Perkette, sales producer for small business insurance broker Insureon. “It is crucial to get the correct amount of coverage so that you can be covered in case of lawsuits or large claims."

For instance, if you’re an owner-operator and hit a deer while driving to pick up a load, comprehensive coverage can help pay to repair your truck. Some policies may also cover rental costs or lost income while your truck is being repaired.

What types of commercial truck insurance coverage can a business buy?

Commercial truck insurance can be comprised of multiple coverage types, depending on your needs:

Liability: Liability coverage covers bodily injury and property damage you or your drivers cause to others in a covered accident
Collision: Collision coverage pays to repair or replace your truck after an accident
Comprehensive: Comprehensive coverage covers non-collision events, such as fire, theft, vandalism and animal strikes
Medical payments or personal injury protection (PIP): Helps cover medical costs for drivers and passengers, required in no-fault states
Uninsured/underinsured motorist coverage: Uninsured coverage provides coverage if you’re in an accident with a driver who has no insurance, and underinsured coverage kicks in if the driver doesn’t have adequate coverage

Additional coverages that may be needed based on your truck use:

Motor truck cargo insurance: Provides coverage for motor truck cargo if it’s lost or damaged while in transit
Trailer interchange coverage: Covers non-owned trailers if you have a trailer-exchange agreement with another transportation company
Bobtail coverage: Covers fleet owners and independent truckers when their trucks are empty and returning to their base or another location to pick up cargo
Hired and non-owned auto (HONA) coverage: Provides bodily injury and property damage coverage for vehicles you rent, borrow, hire or lease
Non-owned trailer physical damage coverage: Provides coverage for trailers you use temporarily for business operations
Heavy truck roadside assistance: Covers breakdowns while traveling, including fuel delivery, replacing flat tires, lockout services, jump-starting a battery, towing or winching
Rental reimbursement for downtime: Pays for lost income and vehicle rental while your truck is being fixed after a covered loss

What are the legal minimum insurance requirements for commercial trucks?

The trucking industry must comply with state minimum requirements, which vary by location.

In addition, trucking businesses that operate interstate or haul certain cargo must meet Federal Motor Carrier Safety Administration (FMCSA) requirements. Required limits depend on the truck’s weight and the type of cargo transported.

For example:

Trucks under 10,000 pounds with non-hazardous freight must have at least $300,000 in liability insurance
Trucks over 10,000 pounds must have at least $750,000
Trucks hauling oil must have at least $1 million, while hazardous materials can require up to $5 million

Which trucking businesses need commercial truck insurance?

If you own or drive a commercial truck that transports people, or goods or your business operates as a transportation company, you need commercial truck insurance.

This can include:

Haulers of vehicles, refrigerated goods, garbage, agriculture and livestock, heavy equipment and machinery, steel, coal, dirt, sand and gravel
Expeditors
For-hire truck operators
Debris removers
Scrap and recycling businesses
Septic waste removers
Escort vehicles
Roadside assistance and towing services
Auto repair shop
Household movers

What does commercial truck insurance cost?

The average cost of commercial truck insurance ranges from $767 to $1,041 per month with Progressive. Policies from Berkshire Hathaway’s biBerk cost between $5,000 and $15,000 per truck annually.

The easiest way to find the best commercial truck insurance is to gather several truck insurance quotes from multiple companies. You’ll receive several cost estimates, and you can evaluate which company offers the best coverage at the right price for your business, whether you have a single semi-truck or a large fleet.

What influences commercial truck insurance premiums?

Several factors affect how much truck insurance costs, including:

The state your business operates in
The type of cargo you haul
The number of trucks in your fleet, their value and type
Security measures you take when storing trucks not in use
Your operating radius
Driving and claims history
Coverage limits and deductibles

Who offers commercial truck insurance policies?

The following are some of the companies that offer commercial truck insurance:

Specialty insurers are also available if you work in a niche industry or your risk is difficult to place. If this is the case, consider a surplus lines insurance company.

How to lower your commercial truck insurance premium

Trucking insurance can be expensive, but there are ways to lower your insurance costs.

Maintain clean driving records
Ensure CDLs are valid
Bundle business policies
Install electronic logging devices (EDLs) in your trucks
Enroll in telematics or fleet management programs
Choose higher deductibles, if affordable
Implement formal safety and risk management policies
Ask for discounts

How do I choose the right commercial truck insurance policy?

Take these steps to get the right commercial truck coverage:

Understand your coverage needs and available options.
Confirm your state and federal requirements.
Get commercial truck insurance quotes from multiple insurers.
Compare coverage limits, exclusions and insurer reputation.
Select the policy with the best value that best meets your trucking needs.

What does commercial truck insurance not cover?

Understanding what insurance for trucking companies doesn’t cover avoids surprises if you need to file a claim.

Though exclusions vary, commercial insurance for trucks typically doesn’t cover:

Unlisted or unlicensed drivers
Normal wear and tear and regular maintenance
Intentional acts
Specific freight (high-value items and hazardous materials)
Going outside the geographical limitations of the policy
Unreported truck modifications
Racing
Workers’ compensation injuries
Mobile equipment or tools not permanently attached to your trucks
Non-business use

Frequently asked questions

How do you insure commercial trucks for personal use?

If your employee is using their vehicle to do their job, you must add a hired and non-owned auto liability endorsement to your commercial auto policy.

Your commercial auto insurance policy should include coverage for employees who drive business vehicles for occasional personal use, such as running errands on their lunch break.

What’s the difference between commercial and bobtail insurance?

Commercial truck insurance protects your business and its employees from third-party liability claims of personal injury or property damage.

Bobtail insurance is a form of commercial truck insurance that provides coverage to drivers and companies when trucks are empty and returning to their base or another location to pick up cargo.

What filings do I need for trucking insurance?

The Federal Motor Carrier Safety Administration (FMCSA) requires all trucking companies engaged in interstate transit and select cargo hauling to provide proof of insurance. Common filings are BMC-91X for liability and MSC-90 for hazardous cargo.