Running a trucking business comes with many expenses, and one of the biggest is commercial trucking insurance. Whether you’re an owner-operator or managing a fleet, understanding what affects insurance costs can help you find the best coverage without overpaying.
How Much Does Commercial Trucking Insurance Cost?
The cost of trucking insurance varies widely based on several factors, but on average:
Owner-operators under their own authority can expect to pay between $9,000 and $16,000, maybe more, per year for full coverage.
Leased owner-operators typically can pay anywhere from $3,000 and $5,000 per year, sometimes more, as their motor carrier often covers primary liability.
Small fleet owners may see costs ranging anywhere from $5,000 to $12,000 per truck per year, depending on driving records and routes.
Factors That Affect Insurance Premiums
Several key factors determine the cost of your commercial trucking insurance:
1. Driving History & Experience
Insurance providers look at the driver’s safety record, years of experience, and accident history. Clean records lead to lower rates, while accidents and violations can increase costs.
2. Type of Truck & Equipment
Newer, more expensive trucks cost more to insure due to higher repair or replacement costs.
Specialized trucks, such as reefers, tankers, or heavy-haulers, may require higher premiums due to their increased risk factors.
3. Type of Cargo
General freight typically has lower rates than hazardous materials or high-value loads.
Some cargo types require higher liability coverage, which can increase premiums.
4. Operating Radius
Long-haul truckers (over 500 miles per trip) often pay higher premiums than local or regional drivers due to increased exposure on the road.
Interstate trucking usually requires more coverage than intrastate operations.
5. Coverage Limits & Deductibles
Higher coverage limits mean better protection but come with increased costs.
Choosing a higher deductible can lower monthly premiums, but it means more out-of-pocket expenses in case of a claim.
6. Location & Routes
Trucking in high-risk areas (major cities, regions with severe weather, or theft-prone locations) can increase rates.
Crossing state lines may require additional regulatory compliance, impacting costs.
Ways to Lower Your Trucking Insurance Costs
While commercial trucking insurance is a necessary expense, there are ways to reduce costs:
✔ Improve Safety Practices – Maintain clean driving records and follow FMCSA regulations.
✔ Invest in Security Features – GPS tracking, dash cams, and anti-theft devices can lower risk.
✔ Bundle Coverage – Combining policies like cargo and liability insurance with the same provider can save money.
✔ Consider Higher Deductibles – A higher deductible can reduce monthly premiums if you can afford potential out-of-pocket costs.
✔ Work With an Experienced Provider – A knowledgeable insurance provider can help tailor coverage to your needs and find cost-saving opportunities.
Affordable Coverage Options for Truckers
At Single Point, we know that trucking insurance is a major investment, and we work with owner-operators and fleet owners to provide cost-effective solutions by offering down payment assistance, also known as premium financing, to help ease the financial burden of securing coverage.