Semitruck and Trailer Insurance: Coverages and Costs
Semitruck and trailer insurance is essential for commercial drivers and fleet operators. It covers everything from liability claims to physical damage and cargo losses.
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Semitruck and trailer insurance is a type of commercial auto insurance that covers large trucks and trailers used for business. It provides financial protection against damage, theft, accidents, and liability claims.
This coverage is essential for owner-operators, commercial truck drivers, and fleet owners. It ensures compliance with insurance requirements and helps protect your investment and income.
Ahead is a breakdown of what semitruck and trailer insurance includes, how much it costs, who needs it, and how to find the best commercial truck insurance company for your needs.
Quick Facts
Semitruck and trailer insurance includes both required and optional coverage options for commercial drivers.
Semitruck and trailer policies typically have higher liability limits than personal auto policies.[1]
Rates vary depending on factors like vehicle type, freight type, and driving history.
What is semitruck and trailer insurance?
Semitruck and trailer insurance is a specialized form of commercial auto insurance designed to protect tractor trailers and their operators. It provides financial protection for losses if the semitruck and trailer are stolen, damaged, or involved in an accident.
Policies typically include liability coverage — often required by law — and physical damage insurance to protect the truck and trailer.[2] Many shippers and freight brokers require cargo coverage as part of their contract terms.
Policies often include the following:
Bodily injury and property damage liability
Physical damage coverage
Theft coverage
Cargo insurance
Trailer interchange coverage
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Who needs semitruck and trailer insurance?
If you operate a commercial truck or tractor trailer, it’s essential to have the right insurance coverage. The right policy protects your business and assets while ensuring compliance with federal and state trucking regulations.
Drivers and businesses that need this coverage include:
Owner-operators: If you own and drive your semitruck, you’re responsible for insuring both the vehicle and the cargo.
Leased operators: Even if you’re contracted under another motor carrier, you may be required to carry your own physical damage or non-trucking liability coverage, depending on the lease agreement.
Fleet owners: Companies that operate multiple trucks and employ drivers need insurance to meet state and federal requirements, cover liability claims, and protect business assets.
Certain types of hauling may require more extensive insurance. For example, you may need specialized coverage — and higher liability limits — if you’re a long-haul driver crossing state lines or a hazmat driver carrying dangerous or flammable cargo.
How much does semitruck and trailer insurance cost?
Premiums for semitruck and trailer insurance can vary widely based on factors such as driving history, coverage levels, type of freight, and the value of your rig.
Rates are typically higher if you haul hazardous materials or operate across state lines. The best way to find a competitive rate is to shop around and compare quotes from multiple insurers.
What does semitruck and trailer insurance cover?
Semitruck and trailer insurance covers the vehicles, drivers, and cargo in commercial trucking operations. Coverage helps protect against costly liability claims, property damage, and repair expenses.
Key coverage options include:
Bodily injury liability
Bodily injury liability covers medical costs and legal fees if your truck injures another driver in an accident.
Property damage liability
Property damage liability pays for damage your truck causes to someone else’s property, including vehicles, buildings, and other structures.
Physical damage coverage
This type of insurance covers damage to your truck and trailer from a collision with another vehicle or object and other losses.
Cargo insurance
Cargo insurance pays for damage to or loss of the goods you’re transporting. Many contracts require this coverage, which is especially important for high-value shipments.
Trailer interchange coverage
Trailer interchange insurance covers non-owned trailers used under a trailer interchange agreement.
Uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage pays for damages if your truck is involved in an accident with a driver who is uninsured or lacks sufficient coverage. This coverage can help pay for medical bills, lost wages, and other expenses that you would otherwise need to pay out of pocket.
These coverages help protect your business from operational disruptions, financial losses, and legal risks.
What won’t semitruck and trailer insurance cover?
Semitruck and trailer insurance covers many risks, but it doesn’t cover everything. Most policies list exclusions, which are specific situations or damages your insurance won’t pay for. These are some common exclusions:
Routine maintenance: This includes oil changes, tire rotations, and standard upkeep.
Wear and tear: This insurance doesn’t cover gradual deterioration or mechanical breakdown from regular use.
Personal use of the vehicle: This policy typically doesn’t cover non-business driving unless you purchase non-trucking liability protection.
Use by unauthorized drivers: Allowing someone not listed on the policy or not authorized to use the vehicle to drive may void coverage.
Overloading: Carrying cargo beyond legal weight limits can lead to claim denial.
Unapproved modifications: While installing video cameras and safety systems might lower insurance premiums, unauthorized alterations could void coverage.
Understanding what your insurance excludes is just as important as knowing what it covers. A denied claim can be financially devastating, especially for owner-operators and small fleets.
Optional coverages for semitrucks
Depending on your situation, you may also consider some optional coverages that can help address unique risks in the trucking industry. Common add-ons include:
Gap insurance:Gap insurance covers the difference between what you owe on your truck loan and its actual value if it’s totaled.
Rental reimbursement: This pays for a rental truck if yours is out of service due to a covered event.
Refrigerator breakdown: This policy type covers damage to temperature-sensitive cargo if your refrigerated unit fails.
Bobtail insurance: This provides liability protection when driving your truck without a trailer.
Hazmat endorsement: Hazmat insurance is required for hauling hazardous materials and provides specialized coverage for those risks.
Good to Know
These coverages can protect your revenue stream and help you recover faster from setbacks. But you’ll want to consider the cost they add to your premiums to determine if these optional coverages are worth it for you.
Factors that affect the cost of semitruck and trailer insurance
As with all types of insurance, the cost of semitruck and trailer insurance depends on several factors. Insurance companies assess risk based on the vehicle and the people operating it.
Understanding these factors can help you identify opportunities to lower your premiums over time.
Driving record
Insurers look at driving history, with clean records typically leading to lower premiums.
Type of freight
Hauling hazardous or high-value materials carries more risk and often results in higher rates.
Value of the truck and trailer
Expensive rigs cost more to repair or replace, which increases premiums for physical damage coverage.
Operating radius
The more time a truck spends on the road and the wider its operating radius, the greater the exposure to accidents and claims.
Location
Where you store and operate the truck affects pricing. High-crime and high-traffic areas may have higher rates.
Claims history
A history of frequent or costly claims — whether from the driver or the business — can signal increased risk to insurers.
Truckers and fleet owners can reduce commercial auto insurance costs by maintaining a strong safety record, keeping claims low, and making smart operational decisions.
Regularly reviewing your insurance needs and comparing quotes is the best way to find affordable coverage for your business.
Where to get semitruck and trailer insurance
You can buy semitruck and trailer insurance through several types of companies. Major commercial auto insurance companies, like Progressive, The Hartford, and GEICO, offer standard policies with optional coverages for individual and fleet operations.
Alternatively, if you haul unusual freight or operate in high-risk regions, you may want to consider a specialized trucking insurance company like Great West Casualty Company.
Comparing quotes from multiple insurance companies is key to finding the best combination of coverage, service, and price for your trucking business.
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How to save on semitruck and trailer insurance
Commercial truck insurance is more expensive than personal auto coverage, but you can reduce your premiums with these strategies:[3]
Maintain a clean driving record. Insurers offer lower rates to drivers with few or no violations or accidents.
Pay your premium in full. Paying annually instead of monthly can earn you a discount and help avoid installment fees.
Choose a higher deductible. A higher out-of-pocket cost can lower your overall premium, but make sure it’s affordable if you need to file a claim.
Use ELDs and telematics to monitor safe driving. Electronic logging devices (ELDs) can help track behavior and prove safe driving to insurers.
Bundle policies with the same insurer. Combining coverages like general liability and cargo insurance can lead to multi-policy discounts.
Ask about discounts. Many insurers offer savings for business tenure, safety programs, and electronic payments.
Shop around. Getting quotes from multiple insurers can help you avoid overpaying for the same coverage.
Remember, though, that the cheapest policy isn’t always the best. Always weigh savings against the protection your business truly needs.
Semitruck and trailer insurance FAQs
Whether you’re an experienced driver or new to the business, the following answers to frequently asked questions can provide additional information.
Do you need commercial truck insurance to do side jobs like hauling?
Yes. If you’re hauling goods for money, even part-time, you likely need commercial truck insurance to protect yourself and stay compliant.
What kind of insurance do you need for a semitruck?
At a minimum, you need liability coverage. But many truckers also carry collision, comprehensive, cargo, and uninsured motorist protection, along with some optional coverages.
Why is semitruck insurance so expensive?
Commercial trucking carries high risks due to the large size of the vehicles and their valuable cargo. These factors, combined with long hours on the road, drive up insurance rates.
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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