Congratulations, you’ve taken the next step in your trucking career and earned the ability to run a business under your new authority. As you progress in your trucking career, you take on more responsibility and face additional risks. Because of this, you need more and different types of insurance coverage.
In this article, we’ll explain all the insurance coverages truckers running under their own authority typically get, along with the top 7 insurers offering coverage for them.
- The 6 best new authority truck insurance companies
- What makes truck insurance for new authorities different?
- Which truck insurance coverages do new authorities need?
- How much does new authority truck insurance cost?
- How to find cheap new authority truck insurance?
The 7 best new authority truck insurance companies
Many insurance companies offer commercial truck insurance for new authorities. Some may offer coverage nationwide, many offer it in some states but not in others. After intensive research, here are the 7 best providers of new authority commercial truck insurance.
- Progressive: Best Overall as the leader in commercial truck insurance
- Simply Business: Best for comparing several quotes
- biBERK: Best carrier if you are looking for cheap commercial truck insurance
- InsurePro: Best for flexible pay-per-day coverage
- OODIA: Best insurance from trucker advocates
- The Hartford: Best for being one of the most ethical and reputable insurance company
- Smart Financial: Best to connect new authority truckers with multiple knowledgeable agents
Progressive: Best Overall as the leader in commercial truck insurance
Progressive is a well-known name in auto insurance industry. They are the market leader in commercial truck insurance industry with 12% market share in 2020. They are known for providing great rates, especially for new drivers in personal auto insurance line and new authority in commercial truck insurance line; good customer service; and great digital experience. In fact, they are one of few companies offering commercial truck insurance quotes online and allowing customers to buy the policy online.
Progressive is also known for offering a lot of discounts. Below are the main ones:
- Paying your premium in full rather than monthly or quarterly
- Bundling your insurance
- Having a safe driving record
- Avoiding making claims
- Allowing Progressive to track your driving in real time
- Agreeing to autopay.
If you just start out in trucking business with your new authority and have a decent personal driving record, you may want to get your first new authority commercial truck insurance with Progressive.
Simply Business: Best for comparing several quotes
Simply Business is an insurance agency. They work with several truck insurance companies and are able to pull quotes from these companies for you to compare to select the best one for you.
Their quote form is pretty simple and shouldn’t take you more than 5 mins to complete it. After your complete the form, they are usually able to provide 3-4 quotes for you to compare, either online or through the phone. Given that trucking business is relatively complicated. It is likely that you will get and compare quotes on the phone with their agents.
You should also be aware that Simply Business is a subsidiary of Travelers, one of the biggest insurance companies offering commercial truck insurance. However, Simply Business operates independently. It is likely that among the 3-4 quotes that they provide to you, one is by Travelers. You can choose whichever is best for you.
biBERK: Best carrier if you are looking for cheap commercial truck insurance
biBERK offers low-cost commercial truck insurance thanks to its direct-to-customer business model. The model helps them save costs and pass savings to its customers. They actually claim that their customers save at least 20% on trucking insurance premiums.
biBERK is a subsidiary of Berkshire Hathaway, the parent company of Geico. Thanks to it, bibERK is a solid carrier with a great reputation and excellent financial strength.
Thanks to its direct-to-customers business model, biBERK offers a great digital experience. biBERK is one of a few companies offering commercial truck insurance quotes online. You can get quotes and buy a policy online within a few mins. After that, you can also manage the policy completely online.
InsurePro: Best for flexible pay-per-day trucking coverage
InsurePro is a newer broker. They offer innovative business insurance coverage, which they call insurance on-demand. This means that you have the flexibility of buying trucking coverage for a short period of time, even just a day. You only pay for the coverage when you are on the road.
This is perfect for part-time truckers or trucking businesses that may not haul every day of the month. Buying trucking coverage for a few days when you need it will help you save a lot of money since you don’t pay for the coverage when you are not on the road.
InsurePro also offers one of the best digital experiences. You can get quotes and buy the policy directly on their website, which only takes about 10-15 minutes. After buying the policy, you can manage your policy online using their dashboard with many useful features.
OODIA: Best insurance from trucker advocates
The Owner-Operator Independent Drivers Association (OODIA) is an international trade association which represents the interests of independent owner-operators and professional drivers on all issues that impact them. OOIDA has more than 150,000 members in all 50 states and Canada. Their members own and operate more than 240,000 individual heavy duty trucks and small truck fleets.
Once you become an OODIA member, you can work with one of its dedicated agents to get the new authority coverage you need. Because OODIA is an advocate for truckers, it’s likely a good option for getting cost effective coverage for your new authority.
The Hartford: Best for being a highly ethical and reputable insurance company
The Hartford is one of the leading business insurance companies in the country. They offer business insurance to businesses in a wide range of industries, trucking is one of their focused industries.
The Hartford has been around for more than 200 years and has insured more than 1 million businesses. They offer highly customized policies. If you are a new authority trucking business and your trucking business has unique characteristics, working with the Hartford would be ideal since they will help customize the trucking insurance policy to meet your business’s special needs.
The Hartford is proud to be voted as one of the most ethical business in the world. If you decide to get new authority trucking insurance with the Hartford, you can rest assured that you are insured by a highly ethical and reputable insurance company.
Smart Financial: Best broker to connect new authority truckers with multiple agents
Smart Financial is a commercial insurance broker or agency. Their mission is to help every trucker in America get the best deal on their insurance and to make the process easy.
The online resource promises to help every type of trucker, including ones operating under new authority, driving any type of vehicle, and transporting all types of cargo. The firm’s unique value proposition is that they will connect you with insurance agents who specialize in trucker coverage. This provides you with access to experts who work with different insurance companies that provide coverage to new authorities. This makes it more likely you’ll find complete coverage at an affordable price.
What makes truck insurance for new authorities different?
Some trucking insurers don’t take on new authorities. They avoid writing policies for newer drivers or newer trucking businesses. The companies that do accept first year owner operators will often charge extremely high premium rates. As a new business owner, one of your first big tasks is finding an insurance provider that will treat you fairly and get you the coverage you need at an affordable price. You owe it to yourself to request quotes from multiple providers to ensure you’re getting complete coverage with a fair premium.
Which truck insurance coverages do new authorities need?
The coverages a trucker driving under new authority needs depends in big part on what you will be hauling.
Some coverages all new authorities need or usually purchase include:
- Primary liability, which covers injuries to other people and damage to the property of others that occurs because of an accident when you’re found to be at fault. This coverage is required by law.
- Physical damage insurance covers damage to your truck — or losses related to it — no matter who’s at fault. Physical damage insurance comes in two parts. Learn more at the best trucking physical damage insurance companies.
- Collision coverage pays for damage to vehicles that’s caused by an accident.
- Comprehensive coverage covers non-collision related damage from things like vandalism or fires. It also protects you if your truck is stolen.
- Cargo Insurance pays for damage done to cargo while you’re hauling it. Learn more at the best motor truck cargo insurance companies.
- Non trucking liability, covers injuries to others or damage to the property of others caused by your vehicle when you’re driving for personal reasons or not hauling cargo. Learn more at the best non-trucking liability insurance companies.
- General liability, which covers injuries that happen to visitors to your business property (for instance, your office or garage) related to things likes slips and falls. It also covers damage you cause to other people’s property while conducting business, but not while driving your truck. For instance, you knock over someone’s computer while loading your truck at their business location. Learn more at the best trucking general liability insurance companies.
- Occupational accident insurance covers work-related injuries. It is less expensive than workers’ compensation insurance, but provides less coverage and fewer benefits. Many clients will require you to have it. A business insurance expert can help you figure out which coverage is better for you.
- Umbrella insurance covers gaps in your insurance coverage.
A representative from one of our five recommended insurers can help you with your coverage needs.
Which factors affect the new authority truck insurance cost?
Several factors affect your new authority truck insurance cost. Below are some of the main ones:
- Your personal driving records. This is probably the most important contributing factor impacting your new authority truck insurance cost. If you have a clean personal driving record, your new authority truck insurance can cost as much as 50% cheaper than a bad record, ie. a DUI or a speeding ticket.
- Types of cargo transported
- Vehicle and it’s value
- Coverage needs
- Operating radius. Intra-state or inter-state makes a big difference in your new authority truck insurance cost as well. Intra-state new authority insurance is a lot cheaper than if you cross the states.
How much does new authority truck insurance cost?
The cost of new authority truck insurance is often very high. Below are the average costs based on different scenarios:
|New authority scenarios
|New authority truck insurance average cost
|Lease on to a motor carrier
|Operate under your own authority – clean personal driving records
|Operate under your own authority – personal driving records with violations, such as a speeding ticket
The surest way to know you’re getting the right insurance for you at the best possible cost is to get quotes from two or three of the insurers on our list so you can compare premiums and coverages and find the combination that makes the most sense for you. Progressive and biBERK are the only two carrier offering truck insurance quotes online. It should take you only 10 minutes or less to get a quote online on their websites, so it may be worth a try.
Working with a top broker like Simply Business or Commercialinsurance.net is a good way to get and compare several quotes in one place since they can pull quotes from the companies that they work with at once. If you don’t have enough trucking business to drive everyday yet, you may want to consider pay-per-day trucking insurance coverage provided by InsurePro. They are also a broker, so they will help you compare quotes to find the cheapest one.
How to find cheap new authority truck insurance?
Commercial truck insurance is generally expensive, especially when you just start out with a new authority. It is generally advisable to start out by leasing on with a motor carrier for the first two year to build your truck driving record. Motor carrier will pay for your commercial truck primary liability coverage, which is the most expensive coverage in your new authority truck insurance policy.
Below are a few tips to save money on your owner operator truck insurance policy.
- Keep your driver records clean. When you start out, your new authority truck insurance rate is based on your personal driving record. After gaining 2 years of truck driving experience, your rate will become cheaper if you maintain a clean driving record.
- Keep a driving logs
- Consider enrolling in a safe-driving program (apps, or other devices to monitor driving)
- Follow the best safe driving practices
- Shop around for the best rates. Different companies will give you different rates, be sure to always shop around with a few companies or with a broker to compare several quotes before making your final decision.
- Maintain and service your vehicles regularly