How to Get Cheap Commercial Truck Insurance in California: 7 Expert Tips

Thang Truong
Thang Truong
Updated on:

As an owner-operator in California, you know that commercial truck insurance is a necessity. But finding affordable coverage can be a challenge. With rates on the rise and coverage requirements getting stricter, it can be difficult to balance the cost of insurance with the need for adequate protection.

Fortunately, there are expert tips that can help you get affordable commercial truck insurance in California. Here are 7 tips to keep in mind:

1. Shop around and compare quotes from different insurers

One of the best ways to get affordable commercial truck insurance in California is to shop around and compare quotes from multiple insurers. Insurance rates can vary widely depending on the company, so it’s important to get multiple quotes before making a decision.

When shopping for commercial truck insurance, make sure you’re comparing apples to apples. The coverage limits, deductibles, and other terms should be the same across all quotes. This will allow you to compare the costs accurately.

We recommend the best commercial truck insurance companies in California for your consideration. They each have pros and cons that you should consider carefully. Below are the top 3 carriers that we recommend:

  • Progressive: Best provider overall in California, especially with several discounts that help reduce premiums
  • biBERK: Most affordable provider in California, especially if you are ok with lower coverage limits
  • THREE: Most affordable yet comprehensive commercial truck insurance in California, especially for small to mid-sized trucking businesses

2. Choose only the coverage that you need

When purchasing commercial truck insurance in California, it’s important to choose only the coverage that you need. While it may be tempting to add on extra coverage, such as comprehensive or collision insurance, these options can significantly increase your premiums. Be sure to carefully consider which types of coverage are necessary for your business.

There are many types of commercial truck insurance coverage that you may need. We discuss the details below. 

In addition, truck owner-operators are individuals who own and operate their own commercial trucks for business purposes. There are several types of owner-operators, each with unique insurance needs. Here are the most common types of owner-operators and the insurance types they may need:

Independent owner-operators

Independent owner-operators are individuals who own and operate their own commercial trucks for business purposes, but they are not leased to a motor carrier or fleet. As independent contractors, they are responsible for obtaining their own commercial truck insurance coverage.

Independent owner-operators typically need liability coverage, physical damage coverage, and cargo coverage. Liability coverage is required by law and helps protect against damages and injuries that they may cause to others while operating their commercial truck. Physical damage coverage helps pay for repairs or replacement of their commercial truck if it’s damaged in an accident, while cargo coverage protects the goods or products they’re transporting.

Leased owner-operators

Leased owner-operators are individuals who own and operate their own commercial trucks, but they lease their trucks to a motor carrier or fleet. As part of their lease agreement, the motor carrier or fleet may require them to carry specific types and amounts of commercial truck insurance coverage.

Leased owner-operators may need liability coverage, physical damage coverage, cargo coverage, and trailer interchange coverage. Trailer interchange coverage is designed to protect against damages or injuries that may occur while transporting a trailer that they don’t own.

Small fleet owner-operators

Small fleet owner-operators are individuals who own and operate a small fleet of commercial trucks for business purposes. They may also lease their trucks to other motor carriers or fleets. Small fleet owner-operators may require different types of commercial truck insurance coverage than independent or leased owner-operators.

Small fleet owner-operators typically need liability coverage, physical damage coverage, cargo coverage, trailer interchange coverage, and non-trucking liability coverage. Non-trucking liability coverage provides liability coverage when they’re operating their commercial truck for non-business purposes.

Motor carriers

Motor carriers are companies that own and operate commercial trucks for business purposes. As employers, they are responsible for obtaining commercial truck insurance coverage for their fleet of trucks and drivers.

Motor carriers typically need liability coverage, physical damage coverage, cargo coverage, trailer interchange coverage, and workers’ compensation insurance. Workers’ compensation insurance for truckers helps pay for medical expenses and lost wages if their drivers are injured on the job.

In conclusion, the insurance needs of truck owner-operators vary depending on the type of owner-operator and the size of their fleet. By understanding the different types of owner-operators and their insurance needs, truck owners can ensure that they have adequate coverage to protect their business and their livelihood.

3. Select the right coverage limits 

Selecting the right coverage limit is an important factor that can help lower your commercial truck insurance cost in California. Coverage limits refer to the maximum amount that your insurance policy will pay out in the event of a covered loss or claim. Here are some ways that selecting the right coverage limit can help you save money on your commercial truck insurance:

Balancing coverage and risk: 

Selecting the right coverage limit means finding a balance between adequate coverage and the risk that you’re willing to assume. If you choose a lower coverage limit to save money on premiums, you may be taking on more risk than you’re comfortable with. On the other hand, if you choose a higher coverage limit than you need, you may be paying for more coverage than necessary.

In California, commercial truck drivers are required by law to carry a certain amount of liability insurance. By selecting the appropriate coverage limit, you can ensure that you’re meeting legal minimum requirements of commercial truck insurance coverage while also managing your insurance costs.

Evaluating your assets: 

When selecting a coverage limit, it’s important to evaluate your assets to determine how much coverage you need to protect your business. If you have a significant amount of assets, such as expensive equipment or inventory, you may need a higher coverage limit to adequately protect your business.

In conclusion, selecting the right coverage limit is an important factor in managing your commercial truck insurance costs in California. By balancing your coverage needs with your risk tolerance, evaluating your assets, and consulting with an insurance professional, you can find the right coverage limit to meet your needs and save money on your premiums.

4. Consider a higher deductible

Another way to lower your commercial truck insurance premiums in California is to consider a higher deductible. A deductible is the amount you have to pay out of pocket before your insurance kicks in. If you choose a higher deductible, you’ll pay less in premiums.

However, keep in mind that a higher deductible means you’ll have to pay more out of pocket in the event of an accident. Make sure you can afford the deductible you choose.

5. Improve your driving record

Your driving record plays a big role in your commercial truck insurance rates in California. If you have a history of accidents or traffic violations, you’ll likely pay more for insurance.

To get more affordable commercial truck insurance in California, work on improving your driving record. Take a defensive driving course to brush up on your skills, and make sure you’re following all traffic laws and regulations.

6. Consider bundling your insurance

If you have other insurance needs, consider bundling them with your commercial truck insurance. Many insurers offer discounts if you purchase multiple policies from them.

For example, if you also need liability insurance for your business or personal auto insurance, consider bundling it with your commercial truck insurance. This can help you save money on all of your insurance needs.

7. Work with an independent insurance agent

Finally, consider working with an independent insurance agent to help you find affordable commercial truck insurance in California. An independent agent works with multiple insurers and can help you compare quotes and coverage options.

An independent agent can also help you understand the different types of commercial truck insurance and which ones you need for your business. They can also help you find discounts and other ways to save on your insurance premiums.

Here are the best commercial truck insurance agencies that we recommend. They each have pros and cons that you should consider carefully. Below are the top 3 agencies for your consideration:

  • Simply Business: Best agency to work with if you want to compare several quotes in one place to find the cheapest one for you
  • Smart Financial: Best agency to work with if you want to find the cheapest rate for minimum coverage requirements
  • Tivly: Best agency to work with if you prefer working 1:1 with an experienced agent

Commercial truck insurance coverage in California 

Commercial truck insurance provides coverage for a range of risks associated with operating a commercial vehicle. These policies typically include several types of coverage, each of which is designed to protect against different types of risks. Here are the most common types of commercial truck insurance coverage:

Liability coverage

Liability coverage is required by law in most states, including California, and is designed to protect against damages and injuries that you may cause to other people or their property while operating your commercial vehicle. This coverage can include both bodily injury liability and property damage liability.

Bodily injury liability coverage helps pay for medical expenses, lost wages, and other damages if you cause an accident that injures someone else. Property damage liability coverage helps pay for repairs or replacement of property, such as another vehicle or a building, that you damage while operating your commercial vehicle.

Physical damage coverage

Physical damage coverage helps pay for repairs or replacement of your commercial vehicle if it’s damaged or destroyed in an accident. This coverage includes both collision and comprehensive coverage.

Collision coverage helps pay for repairs or replacement of your commercial vehicle if it’s damaged in a collision with another vehicle or object. Comprehensive coverage helps pay for repairs or replacement of your commercial vehicle if it’s damaged in a non-collision incident, such as theft, fire, or weather-related events.

Cargo coverage

Cargo coverage is designed to protect the goods or products you’re transporting in your commercial vehicle. This coverage helps pay for damages to the cargo if it’s lost, stolen, or damaged while in transit.

Cargo coverage can be purchased as a separate policy or added as an endorsement to your existing commercial truck insurance policy.

Trailer interchange coverage

Trailer interchange coverage is designed to protect against damages or injuries that may occur while transporting a trailer that you don’t own. This coverage is typically required by motor carriers that use interchange agreements to transfer trailers between different trucking companies.

Non-trucking liability coverage

Non-trucking liability coverage provides liability coverage when you’re operating your commercial vehicle for non-business purposes, such as driving it to a personal appointment or running errands. This coverage is also known as bobtail insurance.

Commercial truck umbrella coverage

Umbrella coverage provides additional liability coverage beyond the limits of your primary commercial truck insurance policy. This coverage can be helpful if you’re facing a lawsuit or other costly legal claim that exceeds your primary policy limits.

In conclusion, commercial truck insurance coverage is essential for protecting your business against a range of risks associated with operating a commercial vehicle. By understanding the different types of coverage available, you can choose the policies that best meet your business’s needs and ensure that you’re adequately protected.

Conclusion

In conclusion, getting affordable commercial truck insurance in California requires a combination of strategies, including evaluating your insurance needs, shopping around for quotes, maintaining a good driving record, choosing the right coverage limit, and taking advantage of available discounts. By following these expert tips, you can find a commercial truck insurance policy that provides the coverage you need at a price that fits your budget. Remember, investing in the right commercial truck insurance coverage is essential to protecting your business and your livelihood, so take the time to explore your options and choose the policy that’s right for you.

Thang Truong
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

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