Compare Trucking Insurance Companies

Understanding Commercial Trucking Insurance

Commercial trucking insurance protects motor carriers from the financial consequences of accidents, cargo damage, and other operational risks. Unlike personal auto insurance, it addresses the specific requirements of for-hire trucking operations.

FMCSA Insurance Requirements

The Federal Motor Carrier Safety Administration (FMCSA) requires all for-hire motor carriers to maintain minimum levels of financial responsibility. These requirements vary based on the type of cargo transported.

For-hire carriers transporting general freight must carry at least $750,000 in public liability coverage. Carriers transporting hazardous materials face higher requirements, typically $1 million to $5 million depending on the specific materials. These minimums are documented through a BMC-91 filing with the FMCSA.

Many brokers and shippers require coverage levels above FMCSA minimums. Common requirements include $1 million in liability and $100,000 in cargo coverage, though these vary by contract.

Types of Trucking Insurance Coverage

Primary Liability Insurance

Primary liability coverage pays for bodily injury and property damage you cause to others in an accident. This is the coverage required by FMCSA and documented through the BMC-91 filing. Coverage limits typically range from $750,000 to $1 million or higher.

Physical Damage Coverage

Physical damage insurance protects your truck and trailer from collision, fire, theft, vandalism, and other damage. It includes comprehensive coverage (non-collision events) and collision coverage. This coverage is typically required by lenders or lessors.

Physical damage policies can be written on an actual cash value (ACV) or agreed value basis. ACV pays depreciated market value at claim time, while agreed value establishes a set payout amount when the policy is written.

Motor Truck Cargo Insurance

Cargo insurance covers freight damage, theft, or loss while in your possession. Coverage limits typically range from $50,000 to $250,000 or higher. Policy exclusions vary significantly, particularly for temperature-sensitive cargo, high-value goods, and specialized commodities.

Non-Trucking Liability (Bobtail)

For owner-operators leased to motor carriers, non-trucking liability covers personal use of the truck when not under dispatch. The motor carrier's policy covers you while working; bobtail coverage fills the gap during personal use.

General Liability

General liability insurance covers business operations beyond driving, including premises liability, completed operations, and personal injury claims. Many facilities and brokers require proof of general liability coverage.

Occupational Accident Insurance

Independent contractors typically do not qualify for workers' compensation coverage. Occupational accident insurance provides similar protection, including disability income, accidental death and dismemberment, and medical expense benefits for work-related injuries.

Factors Affecting Insurance Costs

Trucking insurance premiums reflect many factors, some controllable and others not.

Safety Record: Your driving history, inspection results, and CSA scores significantly impact premiums. Clean records typically result in lower costs.

Experience: New authorities generally face higher premiums. Rates typically decrease as you build clean operating history.

Equipment: Truck age, condition, and safety features affect physical damage premiums. Telematics and dashcams may qualify for discounts with some insurers.

Cargo Type: General freight typically costs less to insure than hazmat, high-value goods, or temperature-sensitive commodities.

Operating Radius: Local and regional operations often face lower liability premiums than long-haul, reflecting different exposure levels.

Deductibles: Higher deductibles reduce premiums but increase your out-of-pocket costs when claims occur.

Shopping for Insurance

When comparing insurance options, look beyond premium cost alone. Consider coverage terms, exclusions, claims handling reputation, and financial stability (AM Best ratings). Providing accurate information is essential; misrepresentation can void coverage.

Working with independent agents who specialize in trucking insurance can help you access multiple markets and navigate coverage complexities. Direct insurers may offer competitive rates for straightforward operations.