How Much Does Truck Insurance Cost?

Truck insurance usually costs more than insurance for a passenger vehicle. This is because trucks are larger and heavier than most passenger vehicles, and they are more likely to cause damage in an accident. Truck insurance rates also vary depending on the type of truck and the use of the truck. For example, a truck that is used for business purposes will usually cost more to insure than a personal truck. Truck insurance costs can vary depending on a number of factors. The type of truck, the age of the truck, the mileage on the truck, and the location of the truck all play a role in how much insurance will cost. Other factors such as the driver‘s driving record, the type of coverage, and the deductible can also affect the cost of truck insurance. 

How Much Does Truck Insurance Cost?

It’s nearly impossible to have a definite answer to this question ‘How much does truck insurance cost’? The reason behind this is the wide factors on which the cost of commercial truck insurance depends. Also, it is good to know that all trucking businesses have different risks associated with them. There are many things that determine the cost to protect the trucking business. Many of the price factors can’t be changed, but some can be reduced by taking some basic considerations like the amount of coverage needed. Here we will discuss some estimates to give you a rough idea of how much these insurance coverage costs. But these vary from business to business. The only way to get the exact idea of amount is to fill out forms stating your conditions and requirements. So, to know the estimates about the insurance cost, let’s have a look at some of the considerable factors!

Factors Affecting the Cost of Truck Insurance

Type of Commercial Vehicle:

As you know, there is a wide variety of commercial trucks available like heavy-duty, medium-duty, light-duty, etc. So, the expense to get the insurance plan for trucks also varies. Some trucks are more expensive to maintain than others ones, hence the policy rates are also higher for some types of trucks. Another reason apart from being expensive for heavy-duty trucks is the risk factor associated with big trucks. And of course, the more damage risk is there, the more policy cost is required.

Operational Radius:

A large operating radius means more risks as the trucks have to travel for so long. There are more chances to get in accidents as the routes are unfamiliar. The more you use your truck for transporting, the more you have to give the price to protect it. The longer the driver is on wheels, the more he gets tired and the more will be at risk of an accident.

Coverages Under Insurance Plan:

Your insurance plan rates depend largely on the types of protection you require for your truck. With each different policy, the price range is also different. That’s why it’s advisable to choose the best policy as per business requirements.

Cargo:

Cargo to be transported are of different size and the risks to carry them also varies. Hence, the cost of the truck insurance largely depends upon the cargo to be carried. Cargo is sometimes so expensive and if they get damaged while transporting them, you may have to pay a very hefty amount if it is not insured. Also, sometimes cargo is dangerous to transport. So, to secure yourself and the business, cargo should be highly considered.

History of Driver:

If your truck driver has a bad driving history that includes accident cases, traffic rules violations, etc, then chances are to pay an extra insurance amount to get your truck secured. The best thing to save some of your insurance money is to hire drivers with a clean history and proper driving skills. You can even take a speed test before appointing them. You can also give some safety pieces of training to your truck drivers. Keeping your truck driving record free from accidents and traffic violations can help you to save a lot on truck insurance premiums.

Deductibles:

This is the price that you have to pay before your insurance policy kicks in. The higher your deductible will be, the lower your insurance premium will be.

As you have read about the major factors affecting the cost of your truck insurance, there are some more suggestions for you to reduce the cost to an extent. Let’s read about them!

Tips to Lower the Cost of Truck Insurance

Have a Clean Driving Record:

This is one of the best factors through which you can get your truck insured at lower rates. A clean driving record shows that safety is your primary concern and you are following that. This directly means you will rarely get into accidents, that’s why insurance providers will take less from you to protect your vehicle. Some insurance companies also offer additional discounts if you have a clean driving record.

Change Freight Routes:

If you operate your truck in some dangerous routes that can be because of many reasons like traffic or a hurry to deliver goods. But try to avoid these kinds of situations as they can lead you to accidents. Always try to opt for smooth and risk-free roads. Maybe it will take more of your time, but safety should be always a priority.

Update the Fleet:

Older and unmanaged fleets are more prone to accidents and also there is a maintenance issue with such vehicles. That’s why the insurance company will charge you more for an older fleet. So, try to update the trucks as soon as possible with proper care and maintenance.

Do Yearly Payment:

Another way to save money on insurance premiums is to pay the amount in one go. Also, there are chances that you may get additional discounts from the insurance provider if you pay yearly in one single installment. It will assist you to save 10-20% approximately.

Average Truck Insurance Cost

As we have stated earlier, the cost of insurance depends upon so many factors and it’s not possible to tell you the exact rate. But still, there is an average limit that you have to pay for insuring your commercial truck. Here is an estimate of the different kinds of insurance coverage annual prices you will need to get your truck insured:

Primary Liability: $5000 to $7000

General Liability: $500 to $600

Physical Damage: $1000 to $3000

Bobtail Insurance: $350 to $400

Uninsured Motorist Insurance: $50 to $100

Worker’s Compensation: $3000 to $5000

These all figures are just an average estimate of the insurance prices. Apart from the above-given factors, insurance cost also depends upon the State under which you are operating your truck.

Conclusion

Let’s wrap up this blog with this piece of information for you to get a rough idea of how much truck insurance costs. As a truck owner, your primary goal should be to get the right truck insurance policy at the right price. So, we tried to make this easy for you. Consider these given factors to get the policy at a lower rate. Always compare different policies from different insurance providers via online quotes or agents to catch the best deal. After all, it’s an important decision for your trucking business.

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