Trucking Business Insurance: Coverages, Costs, and Quotes
A trucking business insurance policy typically provides several types of coverage, such as liability, physical damage, and cargo protection. It’s often required by law or client contracts.
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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Trucking business insurance is a bundled policy package designed to protect commercial truck drivers and fleet owners. It combines multiple coverages to address the risks of hauling cargo, operating heavy-duty vehicles, and running a trucking business.
Whether you’re an owner-operator or manage a fleet, having the right insurance is essential. This coverage helps meet federal and state requirements, safeguards your cargo, and shields your business from financial losses.
Here’s what you should know when shopping for the best trucking business insurance, including who needs it, how much it costs, and how to save money on your commercial truck insurance.
Quick Facts
Trucking business insurance bundles multiple coverages to protect trucks, cargo, and operations.
Insurance coverage is often a legal and contractual requirement to avoid costly financial risks.
Factors like cargo type, driving history, and location can affect insurance costs significantly.
What is trucking business insurance?
Trucking business insurance is a comprehensive policy that combines several commercial insurance coverages tailored to the trucking industry. It helps shield trucking companies and independent owner-operators from daily operational risks, whether on the road, at loading docks, or in other business operations.
These risks include motor vehicle accidents, cargo theft or damage, vandalism, equipment failure, and legal liability from third-party injuries and property damage.
Trucking business insurance is more than just a smart precaution, though — it’s often a legal requirement. The Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability and cargo coverage for certain carriers and freight forwarders.[1] Additionally, many states and shipping contracts require trucking businesses to have specific types of insurance to operate legally.
Without proper coverage, even a single mishap could lead to devastating financial consequences, including lawsuits, out-of-pocket repair costs, and lost business.
The following key policy types are common parts of a trucking insurance policy:
Primary liability insurance
Physical damage coverage
Motor truck cargo insurance
General liability insurance
Bobtail/non-trucking liability insurance
Trailer interchange coverage
Each coverage serves a distinct purpose to help keep your trucking business rolling safely and legally.
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What trucking business insurance covers
Trucking business insurance typically includes several types of coverage, each designed to protect against a specific risk.
Primary liability insurance: Liability insurance covers bodily injury and property damage to others if you’re at fault in an accident. The FMCSA requires primary liability insurance for trucking businesses to operate legally.
Physical damage coverage: Physical damage coverage pays for your truck’s repairs if it’s stolen, vandalized, or damaged in an accident. If you finance your truck, lenders will require full coverage. But even if you don’t have a loan on your truck, full coverage is a smart investment given the high cost of repairs or replacement.
Motor truck cargo insurance: This coverage protects the value of the freight if it’s damaged or lost. The FMCSA requires household goods carriers and freight forwarders to maintain a minimum amount, and shippers often require proof of this coverage before doing business with you.
Motor truck general liability insurance: This insurance type covers incidents unrelated to truck operation, such as customer injuries at your office or damage caused during loading and unloading.
Bobtail/non-trucking liability insurance: Bobtail insurance protects your truck when driven without a trailer or not under dispatch. This is particularly important for leased owner-operators who need separate coverage when driving between jobs.
Trailer interchange coverage: Trailer interchange insurance covers non-owned trailers your business uses under a trailer interchange agreement. This coverage is essential for companies that frequently haul equipment or cargo in non-owned trailers.
What trucking business insurance doesn’t cover
Despite its broad scope, trucking business insurance doesn’t protect against everything. These are some common exclusions:
Wear and tear or mechanical failure: Routine breakdowns or aging parts aren’t covered.
Maintenance: Insurance won’t pay for oil changes, tire rotations, or standard maintenance requirements.
Personal use of the truck: If you drive your truck off the job, you may need non-trucking liability insurance to cover accidents you cause that result in bodily injuries or property damage to others.
Undeclared cargo types: Hauling unlisted or prohibited cargo, such as hazardous materials, can result in denied claims unless you have specialized endorsements.
Intentional damage or criminal acts: Coverage typically excludes any damage resulting from illegal behavior or deliberate acts.
Employee injuries: Workers’ compensation insurance is a separate policy that covers employees’ medical expenses and lost wages if they’re injured on the job.
Knowing these exclusions can help you avoid unexpected costs and get the coverage you need.
Types of commercial truckers who need business insurance
Nearly all commercial truckers need some form of business insurance to meet federal and state requirements, fulfill client contracts, or protect against financial loss. The exact coverage you need depends on how you operate, your role in the supply chain, and whether you own or lease your equipment.
Below are the main commercial trucker categories and the insurance coverage each category typically requires.
Owner-operators who run their trucking businesses are fully responsible for meeting all insurance requirements independently, including requirements set by the FMCSA. In general, owner-operators under their own authority may need the following coverages:
Primary liability insurance
Physical damage insurance
Motor truck cargo insurance
Motor truck general liability insurance
Private carriers use their own vehicles to transport their own goods — for example, a bakery delivering its products to stores using company-owned trucks.
Because these carriers don’t haul for others, third-party liability concerns are minimal. But they still need trucking business insurance, particularly liability and physical damage coverage.
These truckers use their own trucks and provide their services to larger carriers. While the motor carrier usually provides primary liability, the owner-operator typically needs to buy additional coverage, which may include:
Physical damage coverage
Bobtail/non-trucking liability insurance
Trailer interchange coverage
As an owner-operator under lease, it’s critical that you carefully review the motor carrier’s policy. Understanding what it does — and doesn’t — cover allows you to fill in the gaps on your own.
Types of vehicles that need trucking business insurance
Trucking business insurance isn’t just for 18-wheelers. You likely need commercial coverage if you use a vehicle to haul goods, transport materials, or support a business operation.
The following are some of the most common commercial vehicles requiring trucking business insurance:
Semitrucks and trailers: Long-haul trucks that move freight between cities or states typically need full coverage, including liability, physical damage, and cargo insurance. Bobtail and non-trucking liability coverage, general liability insurance, and trailer interchange coverage may also be necessary.
Box trucks: These smaller, enclosed trucks are often used for local deliveries or moving services. Liability and physical damage coverage are essential to protect both the vehicle and the goods inside. Depending on what you’re transporting, you may also need cargo insurance.
Dump trucks: Designed to haul materials like gravel, sand, and construction debris, dump trucks often need specialized endorsements. Besides liability and physical damage coverage, cargo insurance may also make sense.
Pickup trucks: Even standard pickups need commercial coverage if you use them for work, such as landscaping, towing, or transporting tools and equipment. In addition to the required liability coverage, physical damage insurance and uninsured/underinsured motorist coveragemay also be worth it.
Cost of trucking business insurance
It’s difficult to establish an average cost for trucking business insurance. Premiums can range from a few thousand dollars per year to more than $20,000. Rates vary depending on the type of truck, cargo, location, your driving history, and several other factors.
As you research your options, it’s important to shop around and compare quotes from multiple insurers to ensure you get the best possible deal on coverage.
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Factors that affect trucking business insurance premiums
Trucking insurance costs can vary widely from one business to the next. Several key factors influence premiums, and insurers consider the following risks to determine how much you’ll pay for coverage:[2]
Driving history
Insurers consider past accidents and traffic violations. Premiums will likely be lower if you and your drivers have clean driving records.
Cargo type
Transporting hazardous materials, fragile items, or high-value freight usually means higher insurance costs.
Miles driven
Long-haul drivers tend to pay more for insurance than those who drive local routes. This is because more time on the road means more opportunities for accidents.
Vehicle value and age
New trucks with a high market value are more expensive to repair or replace, leading to higher premiums. Conversely, older trucks with fewer safety features may also cost more to insure.
Where the vehicle is garaged
Trucks stored in busy urban areas or high-crime regions are at a greater risk of theft or vandalism. Insurance companies factor this into your rate.
Claims history
If your business has a record of insurance claims, your insurance rates will be higher. A clean claims history, on the other hand, can help you qualify for lower rates and discounts.
How to save on trucking business insurance
Commercial truck insurance costs more than personal auto coverage because it protects larger vehicles, includes higher liability limits, and factors in the added risks of business use. But it’s possible to reduce those costs:
Compare quotes from multiple insurers. Prices can vary significantly between insurance companies. Shop around, and don’t settle for the first quote.[3]
Maintain a clean driving record. Fewer accidents and violations mean lower insurance risk, which usually translates to lower premiums.
Install telematics or GPS tracking. These tools monitor driving behavior and vehicle location. Insurers may reward safe driving with policy discounts.
Choose a higher deductible. If you’re comfortable paying more out of pocket when filing a claim, you can lower your premium by choosing a higher deductible.
Pay annually instead of monthly. Paying your premium in one lump sum instead of in installments often yields a small discount.
Ask about bundling or multi-truck discounts. You may qualify for extra savings if you insure multiple trucks or bundle with other policies — like general liability coverage or sometimes personal auto insurance.
Balance your coverage and premium costs. You don’t want your savings strategy to leave you underinsured when you need protection most.
Trucking business insurance FAQs
If you’re shopping for trucking business insurance, these answers to frequently asked questions can provide additional information.
How does trucking business insurance work?
Trucking business insurance combines several types of coverage in one package to cover trucking operations, vehicles, cargo, and liability risks.
Does a trucking company need business insurance?
Yes. If your company transports goods, you typically need some form of business insurance. It’s often a legal requirement or a condition of contractual agreements. And you need it to operate legally across state lines.
How can you save on truck commercial insurance?
Maximizing your savings on commercial insurance may involve comparing quotes, keeping a clean driving record, and asking about discounts for bundling or safety features.
What are trucking insurance filings?
Insurance filings are proof of coverage sent to regulators (like the FMCSA) showing your business meets legal insurance requirements. Some insurers file on your behalf, saving you time and extra legwork.
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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