Commercial Trucking Insurance Cost Analysis

A Complete Cost Breakdown of Commercial Trucking

Commerical trucking is one of the largest businesses in the U.S. There are more than 3 million drivers working for 711,000 trucking companies.  To secure your business from the unforeseen, commercial trucking insurance is a must. However, commercial truck insurance is expensive. The average cost of insurance is $15,000 per year.  The rate varies depending on the insurance companies, coverage limits, deductibles of the policy and types of truck you want to cover.  

Here is the complete cost breakdown of the commercial trucking insurance to help you make the right decision.  

commercial trucking cost

Cost Breakdown by Type of Trucking Coverage 

The cost of trucking heavily depends on the type of trucking coverage and general factors such as the size of the trucking business and the value of the freight. Here is the average cost breakdown by the significant types of trucking coverage in the table below. 
Type of Coverage  Average Cost Per Month 
Full Coverage  $650 to $1,000 
Liability Coverage  $400 to $600 
Physical Damage  $100 to $300 
General Liability  $60 to $600 
Non-Trucking Liability  $25 to $150 
Motor-Truck Cargo Insurance  $50 to $250 
Motor-Truck General Liability  $200 to $1,000 
Public Liability  $25 to $50 
Primary Trucking Liability  $500 to $1,500 
Occupational Accident Insurance  $140 to $210 
Uninsured/Underinsured Motorists Coverage  $50 to $75 

Average Trucking Cost in USA 

It is mandatory in most states for commercial truck drivers to have comprehensive insurance to protect them on roads and highways. Unfortunately, according to Progressive Insurance, this means higher prices for trucking companies who must purchase primary liability coverage at $640 per month.

As you add other necessary coverages, your cost will go way down because they include in the policy price rather than adding extra fees after buying one (which can happen if you travel outside your home territory).  

 

Why Commercial Truck Insurance Rates Vary? 

Commercial truck insurance rates can vary between trucking businesses.  For example, owner-operators from California may have higher insurance rates than those operating in Texas because they travel across state with their goods increasing risks on the roads transportation.  

 The insurance company considers various risk factors when deciding your premium rates. Some of the factors considered by most insurance companies to determine the premium rates are:  

  • USDOT Authority 
  • Contractual Requirements 
  • Cargo 
  • Operating Radius 
  • Vehicle Type 
  • Gross Vehicle Weight  
  • Driving History 
  • Location 
commercial trucking insurance cost 1

Best Commercial Truck Carriers for 2022

The truck insurance market is dynamic in nature. . One company’s rates may be high today but could decrease tomorrow. In this competitive market, commercial truck insurance companies are finding ways to provide comprehensive coverage at an affordable price. According to Investopedia, here are the Best Commercial Truck Insurance Carriers for 2022: 

Best Rate: CoverWallet

Best Overall: Progressive

Best for Single Trucks: Sentry

Best for Fleets: Hartford

Best Customer Service: State Farm

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How to Calculate Commercial Truck Insurance Cost? 

There are different ways to calculate commercial truck insurance cost. One of the popular methods is by using a commercial truck insurance calculator. Although the companies’ formulas may differ significantly, these insurance companies base the risk-based calculation of commercial insurance premiums.

Suppose you’re looking for a way to determine your commercial truck insurance premium. In that case, it can be calculated by simply adding up the total insurable value of all assets and using an appropriate rate from one or more insurers.

Total Insurable Value X Insurance Rate = Commercial Truck Insurance Premium.

But keep in mind to assess your statement of values assets every year to ensure they are still appropriate for the insurance rates you have chosen. This ensures that the limitations remain appropriate as changes occur within your insurance provider over time.

Commercial Trucking Insurance Rate Comparison by State 

The commercial trucking insurance rates differ from state to state depending upon state laws and regulations.

For example, a Class 3 three-axle commercial truck could cost $1,000 per year in Alabama but only $600 in North Carolina. Considering the price differences, here are some of the states that offer the cheapest to the most expensive commercial trucking insurance rates.

Cheapest  Local Average Rate  Most Expensive  Local Average Rate 
Mississippi  $3,552  New Jersey  $20,763 
Wyoming  $4,927  Louisianna  $19,736 
Massachusetts  $5,447  Delaware  $17,351 
Iowa  $5,615  New York  $16,949 
Arizona  $6,102  Connecticut  $16,946 
Commercial truck insurance can be a complicated topic, but it’s essential to understand how your rates work and what you need for business. It is better to consult with the right agent to help you through the process.

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