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Dump Truck Insurance Requirements

Your dump truck is the core of your business, so you must keep it protected. You want to protect your interests in your truck as well as your business. For this reason, you need dump truck insurance. 

What is dump truck insurance? 

Dump truck insurance is commercial truck insurance specifically designed to cover the risks associated with operating a dump truck. Any dump truck used for business requires insurance coverage. 

Who needs dump truck insurance? 

Dump truck insurance is needed by independent owner-operators of dump trucks, motor carriers who work with dump trucks, and for-hire drivers of dump trucks. In short, anyone who is responsible for driving or operating a dump truck needs dump truck insurance. 

Dump trucks can cause severe damage and injuries. That damage and those injuries can lead to more financial loss than a typical accident involving passenger vehicles. This is due to the size of the trucks. 

What are dump truck insurance requirements?

Anyone who wants to operate their dump truck for a public business must have motor carrier authority from the Federal Motor Carrier Safety Administration (FMCSA). Before an operator receives this motor carrier authority, they must prove they have appropriate insurance coverages. The following coverages are necessary for dump truck operators.

  • Commercial liability coverage: This is the only coverage explicitly required by any state law and the FMCSA. This liability insurance includes bodily injury and property damage coverages. It protects the general public when you have an at-fault accident. The insurance pays for damages done to someone else or to their property in the case of accidents. The material you haul determines how much liability coverage you need.
    • Dump trucks hauling hazardous materials require a minimum of $5,000,000 liability limit and a minimum of $300,000 to $1,000,000 if you haul other non-hazardous materials and goods.  Learn more at the best hazmat truck insurance companies.
  • Cargo insurance: The FMCSA doesn’t require cargo insurance, but most shippers and brokers will only do business with carriers who have it. Learn more at the best motor truck cargo insurance companies.
  • Physical damage, general liability, and other coverages: These are typically not required by the FMCSA. Most shippers and brokers don’t require it either, but some might. These coverages are meant to protect your business’s assets and your trucking business liabilities caused by non-accident trucking business activities. Learn more at the best trucking physical damage insurance companies and the best trucking general liability insurance companies.

Most states require dump truck companies to register with the state. They also require the maintenance of a specified level of liability insurance. 

Buying dump truck insurance policy meeting the state and federal requirements is essential before you start your trucking business. Comparing several quotes to get the cheapest one is important. Getting online quotes from the carriers we recommend below is the best way to find cheapest dump truck insurance for your business:

What does dump truck insurance cover?

Here are some of the coverages you will find in typical dump truck insurance policies. 

  • Primary liability: covers injuries or damage to other people or people’s property. Learn more at trucking liability coverage.
  • Physical damage: covers your truck in case of collision, fire, vandalism, flood, theft, overturning, or other perils
  • Medical payments or personal injury protection: coverage that pays medical or other expenses for the driver and passengers in your truck who are hurt during an accident, no matter who is at fault.
  • Downtime: an added coverage that protects against lost income if your loss is covered. This coverage can help cover your truck payment or other bills if your vehicle is inoperable for an extended time. 
  • Loan or lease gap: This coverage can help ensure that a total loss accident doesn’t leave you owing more than your truck was worth. 
  • Truck rental reimbursement: This coverage allows you to rent a replacement truck and get reimbursed for a portion of the cost. 

How much does dump truck insurance cost?

Most insurance companies charge between $2,400 and $7,200 per year for each dump truck covered. Obviously, the dump truck insurance cost depends on several factors that we discuss the details below. One important factor is the size of the dump truck. We have collected some dump truck insurance costs based on the dump truck’s sizes as follows for your reference:

Dump truck sizesAverage dump truck insurance costs
Single axle dump truck$284 per month
Tandem axle dump truck$412 per month
Triple axle dump truck$516 per month

Keep in mind that these are just the averages. Your rates will be different. Be sure to shop around with a few companies to compare several quotes to choose the cheapest one for you.

Learn more at how much does dump truck insurance cost

Factors that impact dump truck insurance cost

The premiums for coverage depend on several factors, including how many trucks you insure, the type of truck you have, what you are hauling, and drivers’ records and experiences. Sometimes insurers look at credit history and the number of years you’ve been in business. 

Typically, a company that has been in business for more than two years with a good loss history and safety scores will get the best rates. Experienced drivers get better rates than inexperienced ones. Those with good driving records can also expect better rates than those with accidents or violations. 

The company you choose for your dump truck insurance coverage also plays a role in determining the cost of your coverage. Each company has different underwriting policies and criteria for determining whether to offer you insurance. They also have varying rates. Comparing rates is the best way to ensure you get the best possible coverage for the best possible price. 

Best dump truck insurance companies

More than 100 companies offer dump truck insurance coverage. They all have strengths and weaknesses. We have researched more than 30 companies and here are our recommendations of the best dump truck insurance companies for your consideration.

  • InsurePro: Best for flexible pay-per-day trucking coverage
  • Progressive: Best Overall and the only online fast quotes
  • Simply Business: Best for comparing several insurance quotes
  • biBERK: Best for low-cost coverage
  • THREE: Best for comprehensive trucking business coverage at affordable rates
  • The Hartford: Best for companies with 3+ dump trucks
  • Best for comparing quotes through knowledgeable agents

The Takeaway

Those who operate a dump truck or lease for a motor carrier must have dump truck insurance. Dump truck insurance is a specific niche in the commercial auto insurance industry. The FMCSA requires that dump trucks carry commercial liability insurance. The broker, shipper, or even your state may require that you carry additional coverages beyond liability. 

The best way to get competitive rates for dump truck insurance is to ensure that all drivers maintain good driving records. Comparing rates from at least three companies is a good practice when shopping for your dump truck insurance coverage.

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