How much does commercial truck insurance cost? Well, to find out the answer, you have to analyse the truck policies sold from 2020 by dividing them into two different categories such as Transport truckers and Speciality truckers. Transport truckers are the truckers who haul goods such as general freight and autos’ while Specialty truckers are the truckers who specialise in a specific work such as garbage disposal, septic waste disposal, or logging.
The average monthly cost for commercial truck insurance can range from $650 for specialty truckers to $1000 for transport truckers. We have just given an average figure; however, the insurance companies may use different rating factors to calculate the rate, each of them can have a big influence on your premium.
Some insurance policies include both primary liability and physical damage coverage present, and clean driving records for all drivers. Therefore, you can expect the cost of insurance policy to vary depending on the different coverage requirements. Let us discuss a few factors that highly affect the price of insurance policy.
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Rating factors that affect the cost of Insurance Policies
Cargo Capacity
Commercial truck insurance costs can highly be affected by the weight and type of cargo you haul. Some cargo tends to be riskier to transport, while others can be much safer to transport. If you are hauling heavy farm equipment in your truck, then it is likely to cause more damage than a truck carrying light products.
Hence, while getting quotes, we recommend you to disclose accurately and completely the types of cargo that you are intending to transport, which will help in minimising the risk of getting a claim denied.
The radius in which you operate
Truckers that operate in a large radius are typically exposed to higher risks because of the longer drive times between stops and more or less familiar – route options. And it is obvious that a semi-truck driver who travels regionally will pay more than a driver who operates in local areas.
USDOT Authority
If you are planning to lease to a company, then it will be much cheaper than running under your own authority. The leasing companies typically cover their drivers’ primary liability like truck insurance, while their drivers are preparing to dispatch. These types of drivers are required to carry non-truck or bobtail coverage to fill the gaps, which is also less expensive than the primary liability.
Moreover, your USDOT operating history can be a factor in affecting the cost of your insurance if you are working under your own authority. Any type of violation can also put you at risk for a higher rate.
Type of Vehicle
A heavy vehicle generally requires commercial truck insurance policy with high cost than a lighter pickup truck carrying the same type of product due to its potential to cause more damage in an accident. However, a newer vehicle can also be rated higher because the repairing or replacing cost is higher in new vehicles than the older ones.
Contractual requirements
The FMCSA generally provisions a minimum liability limit of $750,000 CSL (combined single limit) or $1,000,000 CSL for truckers who need a federal filing. This is also much higher than most state minimum limits, which means that those drivers can expect to pay more. Remember, CSL is the maximum amount that your insurance company will pay for the combination of bodily injury and property damage per incident.
Certain contracts will require that you carry added coverage such as motor truck cargo, physical damage or trailer interchange, which may increase your truck insurance cost.
Your driving history
If you have a record of a lot of accidents and violations, then it may highly impact on the commercial truck policy than the typical auto policy. Large and heavy vehicles that usually transport bulk levels of cargo are likely to face a lot more damage than other vehicles, which may cause a drastic increase to their insurance cost. So, you are required to keep your driving record free of accidents and violations to save hundreds or in some cases thousands of dollars on a truck policy.
Location
The cost of commercial truck insurance may vary by state. Hence, you need to pay more just because you are operating in states that have higher rates.
However, if you wonder if cheap commercial truck insurance really exists, then you should know that the term ‘cheap’ is relative, which depends upon the coverage and your budget. If you are buying truck insurance having huge coverage at a reasonable price, then you may get satisfied that you have purchased a cheap policy. On the other hand, if you are running short of budget, then a low cost insurance may make you feel spending too much on the similar policy.
How to get the best value for your truck insurance
By adjusting the coverage
You can get more protection with more coverage; however, you may not always get it on a budget. So, there are provisions that you can adjust your coverage that will help to save on the total cost of your truck insurance.
But remember that you will get less protection on less coverage. Hence, you need to make sure that you have chosen the right policy before you start your policy.
By making monthly payments
If you are thinking to pay the insurance annually, then it may cost you a lot. For example, if the annual cost of a commercial truck insurance quote costs $10,000, then you may face difficulty in managing it. But, if you pay it monthly, then it may roughly cost you $833, which is easy to afford.
Some companies also offer very significant discounts to their customers if they pay in full. Remember, each insurance company has their unique pricing options. So, we advise you to check their insurance policy along with the pricing options while getting your truck quote.
Conclusion
If you are considering buying truck insurance, then you must think about availing some discounts, which will help you get you the best of values. Here are a few discount facilities that you can consider while purchasing truck insurance:
CDL discount: You can avail this discount just for having a valid commercial driver’s license (CDL) for at least two years. This is probably the easiest ways to get discount on truck insurance.
Discounts depending on Business experience: If you have been doing business for three years or more than that, then you can get this type of discount.
Paid-in-full discount: You can save up to 15% if you purchase the full policy. Hence, if you purchase a $10000 policy, you can save $1500 on it.
You can visit here for a quote to avail an insurance for your commercial truck.
