Truckers' Auto Insurance: The Inside Lane On Discounts

Do Truck Drivers Get Discounted Auto Insurance?

Truck drivers can get discounted auto insurance, but it depends on several factors. Firstly, it's important to distinguish between personal and commercial truck insurance. Commercial truck insurance is designed for trucking businesses, companies that use trucks, or independent truck drivers. This type of insurance provides financial and legal protection in the event of bodily injury, property damage, and damage or theft of specialised cargo and equipment. It is typically more expensive than personal auto insurance due to the larger size and weight of commercial trucks, which can cause significant damage in an accident.

Various insurance companies offer discounts for truck drivers, with some of the most common discounts including:

- Good driver discount: This rewards drivers with a clean driving record, meaning no accidents, speeding tickets, or other violations.

- Student discount: Students enrolled in high school or college who maintain good grades may be eligible for this discount.

- Anti-theft device discount: Having security features such as an alarm or tracking device installed may reduce insurance costs.

- Paperless discount: Opting for electronic policy documents instead of paper ones can result in savings.

- Military discount: Current or former military members may be offered discounted rates by some insurers.

- Automatic payments discount: Setting up automatic premium payments through electronic funds transfer, debit card, or credit card may lead to a discount.

- Loyalty discount: Renewing your policy with the same insurer may make you eligible for a loyalty discount.

- Low-mileage discount: Insurers may offer lower rates for drivers who travel fewer miles per year, typically defined as less than the national average of 13,500 miles.

- Multi-policy discount: Bundling your auto insurance with other types of insurance, such as home or renters insurance, can often result in a discount.

- Multi-vehicle discount: Insuring multiple vehicles with the same insurer can lead to reduced rates.

- Paid-in-full discount: Paying your insurance premium upfront for the year rather than in monthly instalments may result in savings.

- Commercial Driver's License (CDL) Discount: For-hire truck drivers with a valid CDL for at least two years can often receive a discount.

- Business Experience Discount: Trucking businesses that have been operating for three or more years may be eligible for a discount.

It's important to note that the availability and eligibility requirements for these discounts can vary by insurer and state. Therefore, it's recommended to contact your insurance company or a licensed insurance agent to understand what discounts you may qualify for and how to maximise your savings.

Truck insurance costs

Type of Truck

The heavier and more powerful a truck is, the more it will cost to insure. For example, a semi-truck will generally be more expensive to insure than a lighter pickup truck. This is because a heavier truck has the potential to cause more damage in an accident. Additionally, newer vehicles are typically rated higher because they are costlier to repair or replace than older vehicles.

Size of Vehicle

The larger the vehicle, the higher the insurance costs will be. This is because larger vehicles have a greater potential to cause damage in an accident.

Driver's History

A driver with a clean driving record can usually get a better deal on truck insurance than a driver with multiple traffic violations. Even a small speeding ticket can add hundreds of dollars to the policy cost.

Location and Operating Radius of Business

Truck insurance rates vary by state, so the location of the business will impact the cost of insurance. Additionally, truckers with a large operating radius are typically exposed to higher risks due to longer drive times between stops and less familiar routes. As a result, they will usually pay more for insurance than drivers with local routes.

Average Cost of Truck Insurance

The average cost of truck insurance can range from $2,000 to $18,000 per vehicle per year, depending on the type of truck and the ownership status of the driver. For owner-operators, the cost of coverage can range from $2,000 to $4,000 if they are leased to a motor carrier. However, if they are under their own authority, the cost can be significantly higher, ranging from $9,000 to $30,000 per year.

Factors Affecting Cost of Truck Insurance

Several factors can influence the cost of truck insurance, including:

• Leasing status: Leasing to a company is usually cheaper than operating under your own authority because leasing companies typically cover their drivers' primary liability exposure.
• Contractual requirements: The FMCSA mandates a minimum liability limit of $750,000 to $1,000,000 CSL for truckers who need a federal filing, which is higher than most state minimum limits.
• Type of cargo: The type of cargo being hauled can affect the risk level and, consequently, the cost of insurance. For example, heavy or dangerous cargo will likely result in higher insurance costs because it can cause more damage in an accident.
• Operating radius: The more a truck is driven and the longer the distances covered, the higher the insurance cost will be.
• USDOT operating history: Any violations while operating under your own authority can put you at risk for a higher insurance rate.

Ways to Save on Truck Insurance

There are several ways to save money on truck insurance, including:

• Maintaining a clean driving record: A clean driving record, free of accidents and violations, can help keep insurance costs down.
• Adjusting coverages: Reducing the amount of coverage can lower the total cost of insurance, but it is important to ensure that you have sufficient protection.
• Paying in full: Paying the annual premium in full can sometimes result in a discount on the total cost.
• Increasing deductibles: Choosing a higher deductible can lower the monthly premiums, but it is important to note that this will result in higher out-of-pocket costs in the event of a claim.
• Shopping around: Getting quotes from multiple insurance providers can help you find the best coverage at the most competitive price.
• Taking advantage of discounts: Many insurance companies offer discounts for things like having a Commercial Driver's License (CDL) for a certain number of years or being in business for a certain number of years.

Discounts for truck insurance

Truck insurance is a significant investment for business owners, and it's important to understand the coverage you need and any federal and state laws that apply. Truck insurance falls under the broader category of commercial auto insurance but is specifically for truck drivers and businesses that use trucks.

There are various factors that determine the cost of truck insurance, including the type of truck, the size of the vehicle, the cargo being transported, and the driving record of the driver(s). Generally, the heavier the vehicle and the more dangerous the cargo, the higher the insurance requirements and costs.

• Commercial Driver's License (CDL) Discount: For-hire truck drivers with a valid CDL for at least two years can receive a discount on their liability coverage.
• Business Experience Discount: Owner-operators who have been in business for more than three years are eligible for this discount.
• Paid-in-Full Discount: Some insurance companies offer a discount for policyholders who pay their premium in full at the beginning of the coverage period. For example, Progressive offers up to a 15% discount for this.
• Prior Insurance Savings: Some insurance companies provide a discount for policyholders who have maintained continuous insurance coverage for the previous 12 months.

Additionally, there are other ways to save on truck insurance:

• Multiple Price Quotes: Getting quotes from multiple insurance providers can help you find similar coverage at a lower price.
• Lower Coverage Limits: Choosing a policy with lower coverage limits will result in lower monthly premiums.
• Higher Deductibles: Opting for a higher deductible can lower your monthly payments, but it's important to remember that this also means you'll pay more out of pocket in the event of an accident.

Truck insurance companies

Commercial truck insurance is a significant investment for business owners. It is important to understand the coverage that your business needs and to adhere to federal and state law.

Commercial truck insurance falls under the broader category of commercial auto insurance but is specifically used by truck drivers and businesses that use trucks. It is purchased to cover specific vehicles and is most often purchased by the owner of those vehicles. The insurance also only applies when individuals who are listed on the insurance policy are using the vehicle for business purposes.

There are several companies that offer coverage for commercial trucks, but it can be tricky to make an apples-to-apples comparison. That is why it can be helpful to enlist the help of a broker or agent. You can also do your own research online to find which provider would be best for you.

• Progressive Commercial Truck Insurance: Progressive is the biggest commercial vehicle insurer in the US. They offer one of the largest selections of truck policies and have been supporting truckers for over 50 years. They provide flexible coverage and payment options, free filings, specialized heavy truck claims service, discounts, and expert support. They also have a network of heavy truck repair shops and offer payment plans and low down payment options.
• State Farm Commercial Truck Insurance: State Farm is the largest provider of auto and home insurance policies in the US. They offer a comprehensive truck insurance program, including coverage for employees, goods involved, and commercial automobiles. They have one of the best reputations of any major commercial truck insurance providers and offer several discount options to help lower the cost of policies.
• The Hartford Commercial Truck Insurance: The Hartford has been in business for over 200 years and has a strong selection of coverage options for commercial truck policies. They have an exceptional and longstanding reputation as an insurance provider and perform well on measures of financial strength. They do not offer online quotes, so you will need to contact them directly for a quote.
• Nationwide Commercial Truck Insurance: Nationwide is one of the oldest auto insurance companies in the US. They offer comprehensive coverage, including auto liability, medical payments, collision and comprehensive insurance, and uninsured and underinsured motorist insurance. They also have a convenient online quote system that allows you to enter information about your business and receive an estimate for the cost of a policy.
• Acuity: Acuity has been providing insurance products since 1925 and has a variety of coverage options and enhancements to suit a wide range of trucking businesses. They have a positive company reputation and strong financial health. They also provide a variety of options and enhancements so that you can create a policy that best suits your business’s industry and size.
• National Independent Truckers Insurance Company (NITIC): NITIC has been providing trucking insurance for over 30 years and is one of the biggest giants in the insurance industry. They offer coverage for all types of trucks at reasonable prices, including customized options and a variety of discounted rates. They have a team of experienced professionals that help customers navigate the whole process and have excellent online reviews.
• Sentry: Sentry is a mutual insurance company founded in 1904 that offers specific and specialized insurance products for individuals and businesses. They offer a variety of coverage options for trucking insurance, including standard and more specialized options. They only offer policies through local Sentry agents, but these agents can help you make an informed decision.
• Owner-Operator Independent Drivers Association (OOIDA): OOIDA is an international trade association for professional truck drivers and independent owner-operators. They offer trucking insurance to members, including a variety of coverage options for owner-operators and leased owner-operators. Membership is required to purchase trucking insurance, but it is only $45 per year.
• BiBERK: biBERK, an insurance company within Berkshire Hathaway Insurance Group, specializes in small business insurance. They offer a variety of transportation insurance coverage options ideal for trucking businesses and more. They allow you to get a quote and manage policies online and have strong financial backing and a positive company reputation.

These companies all offer different features and benefits, so be sure to do your research and compare quotes to find the best option for your business.

Truck insurance coverage

Commercial truck insurance is a specific grouping of insurance auto policies designed to cover trucking businesses, businesses that use trucks, or independent truck drivers. It provides financial and legal protection from bodily injury and property damage, as well as coverage for specialised cargo and trucking equipment.

The cost of commercial truck insurance varies depending on the type of truck and whether owner-operators are under a lease or their own authority. It is generally between $2,000 and $18,000 per vehicle per year.

There are several types of truck insurance coverage:

• Primary Auto Liability insurance is required by federal regulations. Every carrier must carry liability insurance on every rig, even on leased units. Liability insurance protects you when a third party is injured in an accident.
• General Liability insurance protects the business for any property damage or bodily injury that might occur which does not involve a truck.
• Non-Trucking Liability insurance pays for an accident when the driver/truck is not under dispatch.
• Non-Owned Trailer Liability coverage protects the trailer you are pulling for someone else.
• Non-Owned Trailer Physical Damage coverage insures the trailer you are pulling for someone else in the event of loss.
• Trailer-Interchange Liability coverage protects a trailer you are pulling when there is an interchange agreement in force.
• Cargo Insurance covers damage/loss of freight in transit.
• Terminal Coverage protects freight located at specified terminals in the event of loss.
• Warehouse Legal coverage protects goods stored at specified locations in the event of loss.
• Physical Damage insurance is coverage for your truck and trailer. Your premium is based on the value of your equipment.
• Motor Truck Cargo insurance protects the goods you haul in a commercial truck.
• Non-trucking liability insurance protects leased drivers when using their trucks for non-business purposes when not under dispatch.
• Trailer interchange insurance is essential for trucking companies or owner-operators who exchange or haul trailers owned by others.
• Heavy truck roadside assistance helps pay for services you need to get back on the road after a breakdown.
• General liability for truckers pays for injuries or property damage you cause as a result of business activities not directly related to operating your truck.
• Rental reimbursement with downtime can help pay for a replacement vehicle rental and lost income while your truck is being repaired.

Truck insurance claims

When to File a Claim

First, always check for injuries and contact the appropriate authorities. If the accident is minor, evaluate whether it is worth calling the insurance company to file a claim. You should know your deductible and how your coverage applies to the accident. If the cost of the damage is lower than your deductible, it may be more cost-efficient to pay for the damage out of pocket.

Information to Provide for the Claim

Next, gather the following information to relay to your insurance company when making your claim:

• The names of everyone involved in the accident
• All vehicle license plate numbers and car information
• The insurance information from all other drivers involved
• All accident specifics that you can remember

It is a good idea to record everything that has happened at the scene. For example, take pictures of all vehicles involved and jot down notes about what happened.

Preventing Truck Insurance Claims

Ultimately, you will want to avoid filing commercial vehicle insurance claims altogether. Clean claims records will save you money and keep your premiums low for years to come. While you can’t always predict the safest travel route, you and your employees can take certain safety measures to prevent accidents that are a result of ignorance. Here are some ways to stay safe on the road:

• Keep a safety checklist in all company vehicles.
• Coach your staff members on safe practices, such as buckling seatbelts and using a hands-free phone.
• Make sure that all your company vehicles meet safety standards and are regularly checked for efficiency (oil changes, etc.).
• Check the driving history of any employee you hire.
• Require your employee drivers to take safety training.

When you call to report a commercial truck claim, you can choose to either leave the coordination of the repairs up to the insurance company by selecting one of their network truck repair shops, or manage your claim independently with the repair shop of your choice.

Some insurance companies, like Progressive, have in-house claims adjusters who will contact you to set up a vehicle inspection to assess your damages and provide you with an estimate for the repairs, usually by the end of the day or sooner. They can also help answer questions or arrange for a tow, and even cover the cost of the tow so you don't have to pay out of pocket.

Common Causes of Truck Insurance Claims

According to the Federal Motor Carrier Safety Administration (FMCSA), there are upwards of 475,000 crashes involving large commercial vehicles in the United States each year, leading to costly losses that can damage a trucking company’s reputation and business growth. Here are some of the most common causes of truck insurance claims:

• Brake-related issues, which have accounted for 29% of semi-truck accidents.
• Driver distraction or performance issues, such as driving too fast or overcompensating on turns.
• Loss or damage of cargo during transport.

Frequently asked questions