What is commercial truck insurance?

Commercial truck insurance caters to the unique needs of owner-operators, fleet owners and individual truckers.

“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."

Commercial truck insurance, depending on the policy, covers damage from accidents, fires, natural disasters and other incidents. It also covers bodily injury to others.

For instance, say you’re an owner-operator on the way to pick up a load at your client’s location. Suddenly, several deer run out of the woods onto the highway. You hit one, damaging your vehicle. With the right policy, your insurance will cover the damage to your truck and, if rendered temporarily inoperable, will reimburse you for a vehicle rental and lost income while your truck is being repaired.

Pros:
  • You can tailor coverage to your specific needs: Commercial truck insurance is highly customizable, so you can get the exact coverage you need, no matter your business or number of vehicles.
  • You can manage risks with free tools: Many commercial truck insurance companies offer free fleet management tools to help you manage risks on and off the road.
Cons:
  • Your coverage may be expensive: Commercial truck insurance averages around $1,000 per month per vehicle.
  • You need to ensure you have the right coverage – and enough of it: You might be tempted to decline optional coverages to save money, but it could prove expensive if you get into an accident and don’t have the right coverage.

Types of commercial truck insurance coverage

The main types of commercial truck coverage are liability, comprehensive and collision coverage. 

Liability covers bodily injury and property damage you or your drivers cause to others in an accident. 

Comprehensive and collision cover physical damage to your trucks from various causes. 

Comprehensive insurance covers non-collision events, such as fire, theft, vandalism and animal strikes, while collision pays to repair or replace your truck after an accident involving another vehicle or a stationary object like a fence.

Just about every state requires commercial trucks to have auto liability coverage that meets its minimum coverage requirements. If you transport goods or people, you might need additional coverage to comply with federal regulations. 

There are also medical payments and personal injury protection (PIP), which can provide coverage for injuries your drivers and passengers sustain in an accident. These are required by law in no-fault states. And if you want coverage for uninsured or underinsured drivers, consider uninsured motorist coverage.

Beyond these basic coverages, your insurance needs will vary based on how you use your trucks and your industry. For example, private carriers or for-hire truckers may need the following:

  • Motor truck cargo insurance. Provides coverage for 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 is the minimum insurance coverage required for commercial trucks?

The trucking industry must comply with state minimum requirements, which vary by jurisdiction, just like drivers with personal vehicles. Motor carriers and other freight truckers with a Federal Motor Carrier Safety Administration (FMCSA) federal filing may have to purchase higher liability coverage, depending on what they’re carrying and the weight and type of the truck.

For example, trucks under 10,000 pounds with non-hazardous freight must have at least $300,000 in liability insurance, while trucks over 10,000 pounds must have at least $750,000. For-hire truckers and private carriers must have at least $1 million if they’re carrying oil, while the same drivers must have at least $5 million when hauling explosives or hazardous materials.

Who needs 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.

Commercial truck insurance can cover almost business, including long-haul truckers, tow truck operators, box truck owners, dump truck operators, and semi-truck owners.

Some specific business types that need commercial truck insurance:

  • Haulers of vehicles, refrigerated goods, garbage, agriculture and livestock, heavy equipment and machinery, steel, coal, and 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

How much is commercial truck insurance?

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

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.

Factors affecting commercial truck insurance costs

Multiple factors affect how much truck insurance costs, including:

  • The state your business operates from
  • 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
  • Your insurance company and coverage choices

Commercial truck insurance providers

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

  • biBerk
  • GEICO
  • The Hartford
  • Lancer Insurance
  • Liberty Mutual
  • Nationwide
  • Progressive Commercial
  • Travelers

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. Discounts vary by company, but you may qualify for a business experience discount if you’ve been in business for at least three years; your drivers have commercial driver’s licenses (CDLs);  you combine your other business policies, such as a business owners policy (BOP) or general liability, with the same company; or have an electronic logging device (EDL) in your trucks. 

Commercial truck insurance companies also typically offer telematics programs, which track mileage and driving behavior, and may provide free fleet-management tools if you don’t have EDLs. 

Other ways to save include choosing higher comprehensive and collision deductibles, hiring employees with clean driving records, implementing a risk-management policy, and only buying the coverage you need.

How to choose the right commercial truck insurance coverage

Take these steps to get the right commercial truck coverage:

  1. Understand your coverage needs and available options. It’s crucial to understand the level of risk your business faces, including the type of cargo you transport. Working with an experienced commercial truck insurance agent can ensure you get coverage that best fits your business needs.
  2. Get commercial truck insurance quotes. Coverage options and pricing vary by company, so it’s a good idea to get several quotes to compare to get the best coverage at a fair price.
  3. Choose your insurer carefully. Evaluate each company’s financial strength, customer satisfaction ratings, and its fleet- and policy-management tools.

Commercial truck insurance coverage exclusions

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

FAQs

How do you insure commercial trucks for personal use?

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. However, this type of coverage does not extend to personal vehicles used for commercial purposes, such as making deliveries. 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.

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. It can also provide coverage to repair or replace your company vehicles if damaged by a covered event such as a collision or vandalism.

Bobtail insurance is 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. Other forms of trucking insurance provide coverage for cargo, non-owned trailers, and roadside assistance, among others.

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. Specific insurance requirements vary based on business type, cargo transported, and vehicles used. In addition to federal requirements, some states also require truckers to submit filings that prove they are sufficiently insured.

The two most common federal truck forms and filings are:

  • BMC-91X filing. This must be filed with the FMCSA. This is for motor carriers and freight forwarders transporting people or goods across state lines. It provides proof that you have sufficient liability insurance.
  • MCS-90 form. This form is for carriers that transport hazardous cargo. It's not filed with the FMCSA; it's attached to your policy as proof that you have the required liability and environmental restitution coverage.