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How Much is Truck Insurance?
Published date:
November 15, 2022
How Much is Truck Insurance?
As a professional driver, you likely see many breathtaking sights on your journeys. Few views beat a sunrise over the Great Plains or a glistening sunset reflecting off coastal waters. Even the wide-open interstate can glisten with promise.
The experience is priceless. Unfortunately, the same can’t be said for truck insurance.
On average, professional drivers pay between $640 and $982 per month for vehicle insurance. However, there are opportunities to save money on an insurance policy. Read on to learn all you need to know about truck insurance and what factors affect its costs.
Insurance Costs
Like coffee at fuel stations, vehicle insurance costs differ based on the type of policy you choose. Before comparing rates, seek the answers to some basic questions, like “What is fleet insurance?” and “What does fleet insurance cover?” That way, you’ll know what to look for. Once you’ve selected a policy, the most common factors to take into account when calculating costs are professional driver type and coverage type.
Let’s explore each factor separately.
Professional Driver Type
Insurance companies typically divide commercial drivers into two categories: specialty and transport.
- Specialty – As their name implies, specialty drivers haul niche freight. This freight may include septic, waste, and hazardous materials. Specialty drivers typically pay $640 per month on vehicle insurance.
- Transport – Transport drivers typically haul general freight like goods and vehicles. On average, transport drivers pay $982 per month on vehicle insurance.
Coverage Type
In addition to their categorization, a professional driver’s insurance coverage type largely determines their insurance cost.
Most professional drivers have one or more of the following coverage types:
- Mechanical breakdown insurance
- Motor carrier insurance
- Motor truck general liability insurance
- Passenger accident insurance
- Physical damage coverage
While rates can differ based on the insurance company, you’ll typically pay more for comprehensive coverage.
How Truck Insurance is Calculated
An insurance company may look at several factors to calculate your trucking insurance costs. These factors include:
- Driver history
- Vehicle size and value
- Freight type
- Location
Here’s a run-down of each factor.
Driver History
Like other types of vehicle insurance, commercial vehicle insurance can rise or fall based on your truck driver history.
Professional drivers whose driving history is cleaner than a well-scrubbed tire generally pay less than drivers whose records are less-than-stellar.
To keep your coverage as simple as swiping a fuel card at a fuel station, avoid the following:
- Accidents
- Traffic violations
- Speeding tickets
You can potentially save thousands of dollars just by keeping it safe on the open road.
Vehicle Size and Value
Larger rigs generally cost more to insure than smaller units. That’s because heavy semis carry an increased risk by virtue of their size. What’s more, larger rigs are typically worth more than smaller vehicles, and their increased values can lead to higher insurance costs.
That said, a smaller vehicle can still fetch high insurance rates if the vehicle has upgrades—especially the trailer. Some high-end trailers can cost as much as $50,000.
In the case of a total loss, insurance companies will likely have to replace all of the vehicle’s value. As a result, insurance rates and vehicle values are like the interstate system—interconnected.
Freight Type
Different types of construction trucks and freights may have varying insurance costs. The type of freight you haul can help determine the insurance rate. If you haul mostly smaller items like home goods, your insurance rates may not rise.
However, if you manage construction materials delivery or haul large and bulky equipment, your insurance rates may rise faster than the temperature gauge when driving uphill. That’s because larger items can cause more damage in an accident.
Even if you haul smaller items, the type of freight can drastically impact your insurance costs. For instance, some hazardous materials may be small but can cause serious damage to people and the environment.
Location
Driving over flat land is a much different experience than winding your way up a mountain pass blanketed by snow. While the former can be relatively safe, the latter poses more risk. As a result, insurance companies may charge you a higher premium if you drive dangerous routes.
You may also be on the hook for higher premiums if your routes take you through urban areas. Urban areas tend to be more congested with traffic than rural areas. As a result, the risk of accidents increases.
Finally, your state helps determine your insurance rates. While some states have lower insurance rates, other states have higher rates.
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How to Save on Truck Insurance
How much is truck insurance when you factor in potential savings? Lowering your commercial vehicle insurance costs can be relatively easy when you:
- Hire safe, experienced drivers – Experienced drivers are more likely to have clean driving records, which can help reduce your truck insurance cost.
- Alter freight routes – If a route takes you through dangerous terrain, see if there are alternate routes to take. While it may cost you a bit more time, you’ll likely save on insurance costs.
- Revamp your fleet – Older fleets can be more prone to accidents and maintenance issues. Outfitting your fleet with newer vehicles can help reduce these risks.
From regular to commercial trucking insurance, you might also consider using a fuel card that allows you to pay for insurance at any time. That way, you can fill up the tank and pay your premiums.
AtoB: Lower Your Premiums, Not Your Service
Although AtoB is a universally-accepted fuel card, that doesn’t mean you only have to use it for fuel. Once you unlock your account’s full capabilities, you can use your card on maintenance, towing, insurance expenses, and more.
Talk about an easy drive.
Apply today and let us help you get where you need to go.
Sources:
Bravo Policy. How Much Does Semi Truck Insurance Cost? (2022 Rates).
https://bravopolicy.com/small-business-insurance/semi-truck-insurance-cost/
Commercial and Farmers Insurance Services. Types of Commercial Truck Insurance & Choosing What is Best for You.
https://www.i95ins.com/types-commercial-truck-insurance-choosing-best/
Progressive Commercial. What does commercial truck insurance cost?
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Reviewed by
Vedant Khamesra
Vedant Khamesra is the driving force behind product management at AtoB. Specializing in strategic partnerships, SMB solutions, and new product development, Vedant seamlessly navigates P&L responsibilities while leading product execution and strategy. He is fueled by AtoB's mission to empower truckers and fleets with intelligent financial tools and services, making their lives easier and more rewarding.
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