Are you wondering, “How much is semi truck insurance?” Perhaps you’re paying exorbitant rates on your current policy.
Overall, the cost of a typical policy ranges between $3,000 and $5,000 a year. That said, the cost depends on a variety of factors, such as driving history, location, and business operations.
One way to save time and money is to hire a specialist who can create a custom policy for you. Trying to piece together a policy on your own can be an expensive mistake. There is no one-size-fits-all policy within the trucking industry, which is why you need a tailored policy.
This article will help you find the best coverage possible for your trucking business. Let’s dive in.
Overall, each insurance category can break down as follows:
- General Liability: $500 to $600
- Primary Liability: $5,000 to $7,000
- Umbrella Policy: $500 to $700
- Bobtail Inurance: $350 to $400
- Uninsured Coverage: $50 to $100
- Occupational Hazards: $1,600 to $2,200
- Physical Damage: $1,000 to $3,000
When it comes to cargo insurance, the cost can vary. That said, the average policy of cargo insurance can cost between $400 and $1,800 a year. A separate cargo policy ranges from $35 to $150 a month.
Further, the cost can also depend on what you’re transporting. For example, you could pay more if you get liability coverage for pollution transportation or debris removal. Additionally, many insurance companies offer additional coverage in the form of theft protection in case a driver steals the cargo, or if thieves hijack the truck.
Moreover, truck companies can protect valuables from water or other hazards that can cause damage. Regardless, these policy additions can increase your premium.
Even though the average prices are still relevant, liability insurance for truckers has increased over the years. For instance, recent hikes have increased premiums between $12,000 and $16,000 a year.
In 2018, premiums increased by 12% compared to the previous year. Further, many trucking companies are contending with price increases between 20 to 30%.
Premiums have risen in part due to shippers demanding high limits for trucks. Further, more underwriters are looking for ways to further limit the risk of high payouts.
Truck accidents can cost millions of dollars. In some cases, insurance companies may have to pay hundreds of millions of dollars if the trucking accident caused fatalities. External factors aside, the rates also depend on three key factors :
1. Insurance History
If you have a history of accidents on your report, your rates will go up. You could also face higher rates even if you only filed a claim.
However, you’ll pay less insurance if you’ve had accident insurance for the past three years. Policyholders with long insurance histories are viewed as more stable and reliable. Conversely, new enterprises are going to pay more because carriers deem new companies as riskier.
Additionally, many insurance providers require at least two years of commercial driving experience to get a quote. In other cases, insurance providers may charge more if you have six months of CDL experience.
Insurance companies will also base premiums on your trucking routes. If you do business around rural areas, expect to pay less overall. If your business is near populated areas, however, the rates will be pricier.
3. Proactive Steps
You can improve various aspects of your operations to obtain a lower quote. For insurance, consider the following measures:
- Replace Old Trucks: Overall, try to retain trucks that are ten years older or less. Additionally, maintain the trucks regularly, and install new equipment when necessary.
- Safety Programs: Insurance companies love any program that promotes safety. These programs may include driver training and/or performance evaluations. Further, warning stickers can reduce rates.
- Hire Safe Drivers: Hire drivers with few accidents on their records. If you have drivers with numerous violations, insurance companies will raise rates. Try to hire drivers with no more than two violations in the past three years.
Plus, you should hire drivers between 30 and 62. Drivers who are too young or too old are riskier, and insurance companies will take notice. As a result, you could end up paying higher premiums for drivers in riskier age groups.
A Custom Policy
Many policyholders are overpaying for coverage they don’t need. Instead, find a carrier who will help you find the right types of coverage.
A custom policy allows you to pay for what you need. A general policy may be more expensive, and it may not provide comprehensive coverage.
Transportation Risk Specialist
It helps someone who has direct experience in the trucking industry. This is a stark contrast from most insurance companies.
In many cases, you’ll talk to agents who don’t know enough about the trucking industry. Someone who is inexperienced can pair you with the wrong policy or recommend limits that aren’t conducive to your business. However, a risk specialist will put together a policy that suits your business alone.
A seasoned advisor can speak your language, and they can help you get the best price. Moreover, they can handle all of the regulatory aspects of insurance, allowing you to focus on your business in the process.
How Much Is Semi Truck Insurance?
If you’re wondering, “How much is semi truck insurance?”, the cost ranges from $3,000 to $5,000 a year under normal circumstances. However, costs have risen over the years, and you could pay as high as $16,000 a year for a policy.
To get a low rate, you can hire safe drivers, create safety programs, and obtain new trucks. More importantly, find a transportation risk specialist who can find the right policy on your behalf.
Interested in reading more? Read more on our blog to learn about other topics.