When finding the actual insurance cost of a semi-truck, there are so many things you will have to put into consideration; In that case, this article is here to help you understand everything you need to know about how much a semi-truck insurance will cost.
You’ll agree with me that the trucking industry has experienced drastic growth over the years, as a result, the demand for trucking companies is also expanding. Owning or managing a semi-truck like other large investments is a wise decision and getting insurance on a semi-truck is wiser. They are one of the most commonly used trucks in the trucking industry.
If you have a fleet of semi-trucks and you’re thinking about establishing your own trucking company, you’ll need insurance because driving a semi-truck is dangerous, and accidents may be quite costly if you don’t have your trucks covered.
When it comes to selecting the best plan for your semi-truck company, there are a few factors to consider. You’ll need to figure out which form of semi-truck insurance is appropriate for you, as well as how much it will cost.
What Is Semi Truck Insurance?
Semi-truck insurance is insurance that provides liability coverage for injuries or damages caused by semi-truck drivers to third parties. Although semi-truck premiums are greater than vehicle premiums, it is important to note that the hazards associated with its operation are also larger.
If you own, lease, or operate a semi-truck on public roadways, you must purchase insurance on the semi-truck.
Why Get A Semi Truck Insurance Coverage?
To drive on public highways in the United States, you must have proper auto insurance. The essence is to have a well-organized system of compensation in case of the event of an accident.
Here are some reasons to get insurance on semi-truck:
Since any pause in your business operations might result in losses, which you should prevent at all costs. The most effective way to do so is to obtain a fair insurance quotation that’ll ensure your company keeps moving even when an accident occurs.
A semi-truck insurance policy will shield you against a slew of lawsuits stemming from accidents caused by an uninsured vehicle.
Because an increasing number of trucking companies have it to protect themselves from third-party litigation. Insurance on semi-truck will protect you from bodily injury and property damage caused by your semi-truck or trucking business operations.
Insurance on semi-truck covers the costs of repairing your truck in the event of a fire, theft, vandalism, or glass breakage. This coverage safeguards your most valuable asset, which is the truck.
Whether you’re transporting hazardous products like chemicals, fertilizers, or fuels, insurance on a semi-truck will protect the cargo you’re transporting in the event of damage or loss. As a result, purchasing semi-truck insurance may be a good idea.
Finally, all 50 states have laws about truck insurance. This coverage is required if you drive a truck or own a trucking company. So, buying insurance on semi-truck is an obligation if your company is in the United States.
What are the Factors That Determine the Cost of Insurance on Semi Truck?
Because insurers consider several criteria when establishing premiums, the cost of insurance on semi-truck might vary greatly.
The following are the factors that determine the cost of semi-truck insurance:
Ownership Status: If you’re an owner-operator on a permanent lease, the motor carrier will cover your public liability, lowering your overall insurance expenses significantly.
Credit History: Insurers look at your credit score and history to see if you’re a good risk. If they see a low credit record, they’ll take it as proof that you’ll cost them more money, and they’ll adjust your rate accordingly.
Driving Experience: The number of years you’ve had your CDL and the number of years you’ve gone without an accident can influence how much you pay for insurance on a semi-truck.
Type of Damage Coverage: While insuring for your truck’s actual cash value will result in a higher premium, the quoted coverage amount will be based on your estimated value.
Policy Limits: The policy limits are the amounts that the insurer will pay for claims. High limits mean higher rates since the insurance on semi-truck providers wants to cover the potential cost to them.
Number of Trucks You Have: The more trucks you have, the higher your semi truck insurance premiums will be. When there are many trucks on the road, there are more odds that more accidents can occur.
Value of Your Trucks: Semi-trucks are costly, and the more valuable your equipment is, the more you’ll have to pay in insurance. As a result, the cost of insuring a more valued semi-truck is higher.
Goods You Haul: What you haul will also affect your semi truck insurance rates. If you haul hazardous materials like fuel, chemicals, fertilizer, or explosives you’ll pay more for insurance.
Driving Distance: The farther you travel, the higher the danger of an accident, and this affects your semi-insurance premium, therefore the distance will always have an impact on your insurance premium, for a variety of reasons.
The longer you are on the road, the more likely you are to be involved in an accident. The more time you spend behind the wheel, the more weary and preoccupied the driver becomes, increasing the risk.
Company’s Location: Because each state has its own rules and regulations regarding insurance on semi-truck, insurance prices differ as well.
All of these factors have the potential to increase or decrease your insurance premiums.
What Are the Types of Insurance on Semi Truck?
There are numerous types of semi-truck insurance that you can purchase and the type will always decide the price of each offer. The following are the various types of insurance on semi-truck that are available:
General Liability Insurance
It covers third-party bodily injuries and property damage that are unrelated to truck transportation. General liability, for example, covers injuries caused by a client if he slips in your garage but not those sustained if you hit him with your rig.
Bobtail insurance protects you and your semi-truck when you’re driving for business but not hauling a load. If someone sues you after an accident, the coverage will cover your legal expenses. Bobtail insurance is frequently required of leased drivers by motor carriers.
Primary Liability Insurance
It compensates you for any injuries or property damage you cause to others while operating your truck. The majority of trucking liability plans demand that each truck be scheduled or named on the policy. If the truck isn’t scheduled, insurance firms won’t pay claims.
Workers’ Compensation Insurance
Workers’ compensation insurance is a state-mandated policy that covers medical expenses and missed wages for employees who are injured or sick at work.
Workers’ compensation is typically required only for motor carriers and owner-operators with employees, but certain states may require coverage for business owners in high-risk industries.
Physical Damage Insurance
Accidents, natural catastrophes, theft, and vandalism all covered dangers for physical damage insurance, which pays for damages and repairs to your truck. Physical damage insurance is not legally necessary, but it is strongly recommended for all drivers.
All of this insurance on semi-truck is often required by owner-operators working under their authority.
Now that you’ve known why you need insurance on semi-truck, the factors that affect it as well as the various types of semi-truck insurance, let’s look at the cost of insurance on semi-truck.
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How Much Does Insurance Cost For a Semi-Truck?
Typically, the cost of your insurance will be determined by the type of policy you require and the type of truck you drive. Below are the costs of insurance on semi-truck:
General liability insurance covers the company as a whole, not just the trucks. The cost of general liability insurance ranges from $490 to $595.
When a driver and truck are not transporting cargo, bobtail insurance helps pay for their expenses, especially when traveling between jobs. The cost of bobtail insurance is between $300 to $400.
This covers property damage and other types of accidents that occur as a result of your driving. The cost of primary liability insurance ranges from $4,900 to $7,000.
Workers’ Compensation Insurance
This kind of insurance on semi-truck compensates for work-related injuries and also provides income benefits and medical payments. Workers’ Compensation Insurance costs about $1,600 to $2,000.
This includes coverage for natural disasters, collisions, vandalism, and theft that cause actual physical damage to the truck and the cost of purchasing coverage for physical damage is between $1,000 to $2,900.
Frequently Asked Questions About Insurance On Semi Truck
Semi-truck insurance is insurance that provides liability coverage for injuries or damages caused by semi-truck drivers to third parties. According to the ruling of the Federal Motor Carrier Safety Administration (FMCSA), you need to have adequate insurance to drive on public roads. A certificate of insurance is necessary for your trucking business to operate.
It is always advisable to get your Insurance registered so you can better protect both yourself and your business; semi truck insurance is no different. If you own a truck, either for personal or business use, try and get it covered with semi truck insurance. CoverWallet can really help you do just that.
In order to drive on public highways in the United States, you must have insurance on a semi-truck. It’s all geared toward providing you with a well-organized compensation mechanism in the event of an accident. Whether you’re delivering hazardous materials like fertilizer, chemicals, or gasoline, insurance on a semi-truck will protect the cargo in the event of damage or loss.
Because most commercial insurance firms do not explicitly write all trucking risks, finding one-size-fits-all insurance packages for your semi-trucks can be challenging. When looking for the best semi-trucking insurance quotation, it is a good idea to compare offers from several companies in the business. We hope this article has been able to show you how much insurance on semi-truck costs.