Truck drivers and trucking businesses face many risk factors, including getting into an accident that could cause serious injury. Commercial truck insurance can protect drivers and businesses against liability and damages due to driver negligence, mistakes, and collision. We’ve evaluated the best commercial truck insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.
Coverwallet began its journey in New York City in 2015 operating under the
Aon Insurance banner. At Coverwallet, you can access everything you need to
keep your company well-protected at an unbeatable price.
With a 100-year history of insuring businesses, Hiscox is well-known across
America and globally. With more than 500,000 small business customers,
Hiscox is fully aware and trained in the unique risks a business can face.
Thimble provides business insurance that can be tailored to your business by
the year, month, day, or even the job. At Thimble, the process to getting
the right business insurance is simple, scalable, and flexible.
Commercial truck insurance is a legal requirement to protect drivers and businesses against liability and loss of cargo. Trucking businesses must have proof of insurance that coverage can protect against claims and accidents.
Who needs commercial truck insurance?
Trucking businesses, businesses that use trucks for transportation, or independent truck drivers should consider commercial truck insurance.
What does commercial truck insurance cover and exclude?
Commercial truck insurance provides an extensive range of vehicles that can be covered for business purposes, especially larger vehicles typically used for the transportation of cargo. Vehicles can include (but not limited to):
Tow trucks
Pickups
Box trucks
Refrigerated trucks
Catering trucks
Front loaders
Garbage trucks
Cement trucks
Tractors
Coverage can depend on the type of truck and cargo transported. Types of coverage include:
Physical damage: If your truck is involved in an accident, physical damage coverage can help pay for repairs to your vehicle due to an accident or collision. In addition, if your truck is vandalized, commercial truck insurance provides coverage for the cost of damage to the vehicle.
Primary liability: If damage is caused to a third-party vehicle, primary liability coverage will help pay for third-party repairs, medical expenses, and damages. This does not include coverage for the truck driver or the vehicle responsible for the accident.
Uninsured motorists: Trucks that get into an accident are likely to be the most expensive vehicles involved. If the at-fault driver is uninsured or underinsured, they are unlikely to be able to pay for damages and repairs. Commercial truck insurance can provide coverage for uninsured or underinsured motorists.
Medical expenses: If the truck driver is injured in an accident or collision, coverage for medical expenses can cover the injured driver and passengers.
Cargo coverage: It is a legal requirement for cargo to be insured while in transit. If the cargo involves items such as tobacco, fine art, animals, and explosives, specialist cargo insurance coverage may be required.
Rental reimbursement: Covers instances where your truck needs to go in for repairs and a rental vehicle is required to continue with business operations.
Non-trucking liability: If you use your truck outside of your business, non-trucking liability provides coverage for accidents and damages that occur.
Theft: If your truck is transporting expensive or valuable cargo, it’s important to consider theft coverage. If your truck is intercepted and the goods are stolen, commercial truck insurance can help cover the cost of the stolen items.
Exclusions are incidents and events that are not covered by your insurance policy. Common exclusions for commercial truck insurance include:
Intentional damage: Drivers and trucking businesses that cause intentional damage to receive an insurance payout will not be covered.
Types of cargo: Some types of cargo may require a specialist policy or be excluded altogether. These can include tobacco, explosives, alcohol, and live animals.
Third-party property damage: Exclusions can include personal items and transportation of vehicles belonging to others.
What are the limits of commercial truck insurance?
When you take out a commercial truck insurance policy, your limits will determine the maximum amount you can claim in a given policy period. Coverage limits required depend on the type of vehicle and cargo. Larger trucks with hazardous cargo require more extensive coverage to protect the vehicle, driver, and cargo.
$300,000 for non-hazardous freight vehicles weighing under 10,001 pounds.
$750,000 – $5,000,000, depending on commodities transported for freight vehicles over 10,001 pounds.
Depending on your state and type of cargo, there may be additional requirements to consider.
How much does commercial truck insurance cost?
Several factors go into the calculation of commercial truck insurance, and policy premiums can vary from one insurer to the next.
Here are some factors that insurers will consider when providing a quote:
Type of vehicle: Larger and heavier trucks can be more expensive to insure as they pose a higher risk of getting into an accident. Typically, newer vehicles attract higher premiums compared to older vehicles, as the cost of repairs is more expensive.
The number of vehicles: The larger your fleet of trucks, the more expensive your insurance policy will be.
Distance: Drivers responsible for long-distance transportation of cargo are likely to be affected by higher insurance premiums. There is also a greater chance of an accident on longer distances.
Cargo type: Insurance premiums will reflect the risk of cargo getting damaged. Expensive items or dangerous cargo can be more costly to insure. Certain types of cargo such as livestock and tobacco could be excluded from the policy altogether.
Experience: The number of years of experience significantly impacts the insurance premium. Drivers with fewer years of experience are likely to get into more accidents. Provided you can keep your driving history free of violations and accidents, your insurance premiums are likely to be lower.
Claims history: Frequent claims with large payouts for accidents and injuries can attract higher premiums compared to smaller claims and damages.
Deductibles: Typically, the higher your deductibles, the lower your insurance premium.
Policy limits: Depending on the type of truck you use and the cargo transported, you will likely have to expand your policy limits to provide more extensive coverage. This can attract a higher insurance premium.
Trucking routes: Climates can differ between trucking routes which can impact the safety of the cargo and vehicle. If a particular route is densely populated, there could be a greater risk of an accident, increasing the premium of your insurance policy. It’s also important to map out routes beforehand to avoid problematic areas prone to bad weather.
How to choose the best commercial truck insurance
When looking for the best commercial truck insurance policy, here are some key factors to consider before you make a purchase:
Compare multiple insurers: Different insurers specialize in specific commercial truck insurance policies. It’s a good idea to get quotes from several providers to find an insurer that can provide the level of coverage you require at the best possible price.
Discounts: Many insurance companies provide discounts such as multi-policy or up-front payment discounts. This can help you save money on your insurance premium.
Customer satisfaction and rating: It’s a good idea to read reviews on the insurance company before taking out a commercial truck insurance plan. Look out for how the company handles customer complaints and the percentage of claims that are paid out by the insurer.
Exclusions: It’s important to read the terms and conditions of your policy to ensure that you have adequate coverage. This can help to avoid any unwanted surprises later on when you go to file a claim and find out that it is rejected.
