Whether you’re a trucker trying to insure a single vehicle, a construction company that needs coverage for a cement mixer and other equipment or a hauler trying to cover a fleet of trucks, you’ve probably experienced sticker shock when it came time to get estimates for coverage. Depending on the kinds of trucks you need to insure and what you do with them, the coverage could reach into the tens or hundreds of thousands of dollars.
It’s completely understandable that you’re looking for cheap commercial truck coverage. Still, you don’t want to purchase bad insurance or protection that comes with poor support or a slow claims process. Trucks are your livelihood and you’ll sleep better at night knowing you’re paying fair rates for quality coverage that will help get a truck back up and running quickly after an accident.
In this article, we’ll recommend some companies that could provide you with solid commercial truck coverage at low prices. We’ll also answer some common questions about commercial truck insurance that will give you the information you need to get cheap, yet high quality, coverage.
- The 5 cheap commercial truck insurance companies
- Can I save money by not getting commercial truck insurance?
- Can I get cheap commercial truck insurance if I lower my deductible?
- Can I reduce commercial truck coverage costs if I have an older truck?
- Cheaper trucks means cheaper truck insurance
- What kinds of discounts can I use to get cheap commercial truck insurance?
- What can I do to lower my commercial truck insurance cost?
- How much is cheap commercial truck insurance?
- Average commercial truck insurance cost per month
- What factors affect commercial truck insurance cost?
The 5 cheap commercial truck insurance companies
We’ve done the homework for you. Here are the five insurers that could get you cheap quality commercial truck coverage.
- Simply Business: Cheap truck insurance by comparing quotes from multiple providers
- biBERK: Low-cost truck insurance by selling directly to customers
- Progressive: Cheap commercial truck insurance with several discounts
- THREE: Cheap commercial truck insurance by making it uncomplicated
- Smart Financial: Cheapest commercial truck insurance with minimum coverage
Simply Business: Cheap truck insurance by comparing quotes from multiple providers
The surest way to get good commercial vehicle insurance while saving money on your coverage is to get quotes from multiple providers. The easiest way to do that is through Simply Business.
Simply Business is a cutting-edge insurance broker. The firm has developed its own state-of-the-art platform, based on its own algorithms, to ensure it is able to connect truckers and companies with the commercial truck and other business insurance they need at the most reasonable price. The platform makes it quick and easy to get quotes from several providers at once, making it possible to compare coverage and premium prices from highly reputable insurers all in one place.
The firm’s experts have used their extensive experience to make sure you only have to input the information needed to generate quick and accurate quotes. The entire process should take less than ten minutes, even for coverage as complex as commercial truck insurance.
Once you get your quote, Simply Business makes it easy to purchase a commercial truck policy online or through an agent. When you get your commercial truck policy through Simply Business, it’s simple to manage your coverage online, including downloading a certificate of insurance, filing a claim, renewing your coverage, and more. This is especially great for truckers who spend a lot of time out on the road.
- The best option to compare several quotes to find the cheapest one for you
- Offer one of the best hybrid experiences between online and agent consultation
- Help you navigate the complexities of the commercial truck insurance industry to find the right coverages at the cheapest rate
- Excellent consumer satisfaction rating on trustpilot for an insurance brokerage. They actually earn one of the best consumer satisfaction ratings for an insurance company on the platform
- If you prefer getting insurance from a particular carrier that they don’t work with, you have to look elsewhere
- Some carriers that they work with may not be well-known although they make sure all carriers on their platform have excellent financial strength ratings
biBERK: Low-cost truck insurance by selling directly to customers
biBERK is a subsidiary of Berkshire Hathaways, ie. Warren Buffet. The firm specializes in selling insurance to small businesses directly, bypassing agents and brokers. Trucking is one of their focused industries.
The company develops its trucking insurance in such a way that it can be quoted, sold, and managed entirely online, making it possible to sell directly to truckers and trucking companies. This helps cut costs to make insurance more affordable to its customers. In fact, biBERK claims that they are able to save 20% on premiums for their customers.
With its low-cost approach, biBERK is confident that their insurance rates is very competitive. It is also one of the 3 companies offering truck insurance quotes online (the other 2 are Progressive and THREE). It shouldn’t take you more than 10 minutes to get a quote and buy a policy online on its website. You should definitely give it a try.
- Very competitive rates compared to other similarly reputable insurance companies
- Backed by Berkshire Hathaway, the parent company of Geico
- Excellent digital experience from quoting to buying a policy, and managing a policy, including filing a claim online and on their app
- They also offer other business insurance coverage at similarly affordable rates that a trucking business may need as well. So you may be able to buy all coverages that your business needs in one place
- The coverage limits may be lower than other options. If you compare with other options, be sure to pay attention to the coverage limits
- Online quotes may not be available to trucking businesses or truck drivers with some specialty trucks
Progressive: Cheap commercial truck insurance with several discounts
All those television commercials from Progressive that promise discounts if you buy insurance from them are true. Progressive offers more types of discounts on insurance, including commercial truck coverage, than any other firm.
You can earn discounts for things like:
- Having significant driving experience
- Earning a CDL certification
- Paying your premium in full rather than monthly or quarterly
- Bundling your commercial truck coverage with other coverage
- Allowing the insurer to electronically monitor your driving habits
- Agreeing to autopay.
The good news is that even though Progressive can provide you with cheap commercial truck insurance, you will get quality coverage and professional service.
Progressive is a reputable company that’s been offering vehicle insurance for more than 80 years and is the top commercial vehicle insurer in the United States, which means it’s doing something right.
Progressive is able to cover anything from a small single truck to a complete fleet of semis. It is also super easy to get a quote and buy a policy online with Progressive. It shouldn’t take you more than 10 minutes. Here is a sample quote for a single driver based in Los Angeles with a box truck who has had no accidents or moving violations in the past three years.
THREE: Cheap commercial truck insurance by making it uncomplicated
THREE is another subsidiary of Berkshire Hathaways. It was founded on the belief that small business is unnecessarily complicated and it doesn’t need to be. They promise that each small business will have a policy with 3 pages when buying insurance from them, regardless how many coverages the business get. They always fit into 3 pages with plain English, no insurance jargons or fine prints. They specialize in simplifying truck insurance and make it super easy for everyone to understand.
By doing that, they also reduce the unnecessary complications in trucking insurance and reduce costs. They offer a great digital experience. You can get quotes online within 10 minutes to less, buy a policy online, and manage all of your business insurance policies online.
Smart Financial: Cheapest commercial truck insurance with minimum coverage
Smart Financial is a leading insurance brokerage. They specialize in serving small businesses, especially the ones in the transportation industry. They started out helping consumers find cheap personal auto insurance options, especially those who can only afford legally required minimum coverage, and have been very successful with that. When they expanded to serving small businesses, they followed the same strategy by focusing on the segment of businesses that can only afford the legally required coverage. As a result, when it comes to commercial truck insurance, they specialize in helping truck owner-operators and trucking businesses find the cheapest rates for legally required minimum coverage.
As a truck driver, you should know that each state has its own commercial truck insurance minimum requirements that you need to have to drive legally in the state. If that is the only coverage you can afford, Smart Financial is a good option for you to work with. They will find the cheapest rate for such coverage for you.
- You can get a quote in minutes, and there is no obligation to buy
- Very affordable rates for the minimum coverage required in your state
- You can choose the coverage that’s right for your business
- There are several options available, so you can find the perfect policy for your needs
- You’ll have peace of mind knowing that you have the required coverage to drive your commercial truck legally
- Some carriers that they work with may not be very well-known although they all have excellent financial strength ratings
- If something happens, you have to file a claim directly with the insurance companies
Can I save money by not getting commercial truck insurance?
The answer is NO. It is illegal in all 50 states and Washington DC if you drive a truck without insurance.
All states have minimum insurance requirements and you must meet them. You can find information about your state’s requirements online or from an agent experienced in truck insurance can explain how much coverage you need to drive your truck in your state.
Vehicles traveling in two or more states are subject to the even more stringent requirements of the Federal Motor Carrier Safety Administration (FMCSA). The federal liability limit minimums are:
- $300,000 for vehicles that weigh 10,000 pounds or less and carry nonhazardous freight
- $750,000 for vehicles that weigh more than 10,000 pounds and carry nonhazardous freight
- $1,000,000 for vehicles that carry oil
- $5,000,000 for vehicles that carry other types of hazardous materials
- $5,000,000 for passenger vehicles
- $1,500,000 for passenger vehicles that can seat 15 people or fewer.
These are the federal government’s minimum requirements, but some shippers and brokers may also require liability coverage of at least $1,000,000. That is regardless of the type of material your truck hauls. It’s usually a good idea to exceed the federal minimum requirements for coverage. This is where working with an insurance professional can be smart. They can advise you on how much coverage you really need, so you don’t waste money on unnecessary insurance, but also avoid having too little protection, which could put your operation at risk.
Can I get cheap commercial truck insurance if I increase my deductible?
Your deductible is the amount you pay out of pocket for losses before your insurance coverage kicks in. By agreeing to a higher deductible, you can lower your premium costs by a lot. The one thing you need to be aware of before choosing a higher deductible, is that you always have to have enough in savings available to cover the deductible if you or someone who works for you is involved in an accident. If not, you could end up with a truck or piece of equipment out of commission until you can come up with the cash.
Can I reduce commercial truck coverage costs if I have an older truck?
It is possible to get cheaper coverage on an older vehicle. This is specific to the cost of trucking physical damage coverage. That’s because the replacement cost of it is lower than a newer model. It’s important to get new quotes before renewing your policy. By doing so, you’ll be more certain that you’re not paying too much to insure an older model truck.
One thing you need to be aware of before reducing your coverage on an older truck or piece of equipment is that you always have enough protection and cash on hand if you ever experience a total loss. If you don’t, you might end up with it out of commission and unable to use it.
Cheaper trucks mean cheaper truck insurance
Consider your insurance costs when you’re buying a truck or new piece of equipment. Do you really need the most expensive vehicle with all the bells and whistles? Probably not. The more costly and complex the truck or other vehicle, the more it will cost to get coverage.
You may not need to buy a new truck. Finding a good quality used truck with lower cost will also save you a lot of money in commercial truck insurance. Especially if you are new to trucking industry, don’t over spend on your truck.
What kinds of discounts can I use to get cheap commercial truck insurance?
Many insurers will give you a break if you buy two or more types of business-related insurance coverage from them. You may also get a reduction if you have more than one truck or other pieces of equipment covered by them. Some insurers reduce rates for long-time customers or people who pay their policies in full rather than monthly or quarterly. You can also get discounts for installing auto theft devices and having a good driving record.
Even though it typically makes sense to bundle coverage with a single provider, you should still shop around for cheap commercial truck coverage. You may save more money working with multiple insurers. You never know for certain unless you check out your options.
What can I do to lower my commercial truck insurance cost?
Trucking is your livelihood, so you don’t want to skimp on your coverage. However, there are some things you can do to lower your cost:
- Maintain a clean driving record if you are driving yourself or hire drivers with clean records. If you or your drivers have violations on your driving records, make sure you do everything possible to remove these violations from your records gradually.
- Require driving logs
- Enrolling in a safe-driving program (apps, or other devices to monitor driving). If you are a safe driver, your premiums will decrease accordingly.
- Provide continual safety training and monitor safety best practices
- Maintain your vehicles regularly
- Last but not least, shop around and compare several quotes to find the best rates
Taking these steps will help ensure you’re not paying too much for your commercial truck coverage.
How much is cheap commercial truck insurance?
Based on our research, the average cost of commercial truck insurance in the United States is around $11,400 per year. That’s for liability, bobtail, cargo, and physical damage coverage for a single truck.
As a truck owner operator, if you can get commercial truck coverage under $9,000 a year, that may be considered a good bargain when compared with the average.
Learn more at how much does commercial truck insurance cost
Average commercial truck insurance cost per month
The average commercial truck insurance cost per month is $950. That includes liability, bobtail, physical damage, and cargo truck insurance. Below is the average cost breakdowns of different coverages:
|Commercial truck coverages
|Trucking primary liability coverage
|$450 per month
|$45 per month
|Physical damage insurance
|$320 per month
|Motor truck cargo
|$135 per month
What factors affect commercial truck insurance costs?
There are many factors that impact the cost of coverage including:
- Vehicle value
- Number of trucks
- What you haul
- Number of drivers
- Driving history
- Years in business
- And more.
It’s a good idea to get several commercial truck insurance quotes and compare them to get the coverage you need at the best possible price.
What states have the cheapest commercial truck insurance?
Commercial truck insurance rates can vary from state to state because of the different laws that are in place. For example, some states have laws that require commercial truck drivers to carry more insurance coverage than other states. Additionally, the cost of repairing or replacing a commercial truck can vary depending on the state, which can also affect the cost of commercial truck insurance.
Below are the states with the cheapest commercial truck insurance rates based on our intensive research Mississippi, Wyoming, Massachusetts, Iowa, and Arizona in that order. If you are looking for commercial truck insurance in these states, you can see the cheapest and the best providers in these states by clicking on the state name in the table below.
The cheapest and the best commercial truck insurance companies in 50 states
If you are looking for the cheapest and the best commercial truck insurance in the 50 states, here are our recommendations of the top providers in each state and the reasons why they are our top picks for your consideration:
Do trucks cost more to insure?
Yes that’s true. Trucks cost more to insure due to a few reasons:
- Trucks are larger and heavier than passenger vehicles, so they can cause more damage in an accident.
- They also often transport hazardous materials, which can increase the risk of an accident. And when a hazmat truck is involved in an accident, it will cause tremendous damages and injuries, that is the reason why hazmat truck insurance is always the most expensive
- Finally, truck drivers are often on the road for long periods of time, which can lead to fatigue and increased chances of an accident.
Do trucking insurance rates go up every year?
Yes that’s true. According to the American Transportation Research Institute (ATRI), trucking insurance premium costs per mile increased overall by 47% over the last 10 years (2012-2022), from $0.059 to $0.087.
There are a few reasons why trucking insurance rates have gone up in the past 10 years. One reason is that there have been more accidents involving trucks. In addition, the cost of repairing damage to trucks has increased in recent years. Finally, the cost of medical care for people injured in truck accidents has also increased.
If you are shopping for commercial truck insurance for the first time or you are renewing your commercial truck insurance policy, make sure you shop around with a few companies or work with a broker likely Simply Business or Smart Financial to compare several quotes to find the cheapest option for you.
What is commercial truck insurance?
Commercial truck insurance is a type of insurance that is usually purchased by trucking businesses, people who primarily use trucks for work or companies that depend on trucks for doing business.
Commercial auto insurance covers all kinds of vehicles that are used for conducting business, which could include certain kinds of trucks. Commercial truck insurance is different in that it exclusively covers larger vehicles that are typically used for construction, contracting or hauling freight.
Commercial trucking insurance is usually purchased by the owner of a company, but it covers the driver, passengers and any individuals harmed in an accident.
What does commercial truck insurance cover?
Commercial truck insurance is more complex than commercial auto or personal auto insurance. There are several coverages in truck insurance, some are required by state and federal regulations, some are not. Below are the most important truck insurance coverages that you might need to have.
Trucking primary liability
Trucking primary liability is the most important coverage in truck insurance. When people say “commercial truck insurance”, it is likely that they refer to this coverage. This coverage is required by all state and federal laws. If you drive a truck, you must have this coverage. The coverage includes two main liability coverages: bodily injury liability and property damage liability
Bodily injury liability
This covers you if the tow truck driver causes injuries to another person or people in an at-fault accident. The amount of coverage that is required varies from state to state, but every state requires some bodily injury coverage.
Property damage liability
This covers you for physical damages to someone else’s property, but not any cars you may be towing. For that, you need on-hook towing coverage.
On-hook towing coverage
If you are in towing business, you might need on-hook towing coverage. On-hook towing coverage provides protection for damages that occur to a vehicle while it’s being towed. It covers damages due to fire, collision, theft, or vandalism. However, it does not apply to any vehicles you own (personal or owed by the company). In other words, you can’t collect if you damage your personal vehicle while you’re towing it somewhere.
Bobtail and non-trucking liability insurance
Bobtail insurance covers you when you drive your truck without a trailer attached to it and get involved in an accident. You should seriously consider having this coverage when you lease on your truck to a motor carrier and drive under their authority since the coverage provided to you by them doesn’t include bobtail coverage. Bobtail insurance cost is relatively affordable compared to other coverages, just around $30-50 per month.
Non-trucking liability insurance
Non-trucking liability insurance covers you when you drive your drive for personal purposes and during non-working hours, regardless if a trailer is attached to your truck or not. It can be confusing between bobtail insurance and non-trucking liability insurance. Learn more about the difference between the two here and which one you should have.
Trucking physical damage insurance
Trucking physical damage insurance protects your personal tractor or trailer if it’s damaged in an accident. This coverage is required if you finance your truck. Even if you don’t, it’s a good idea to purchase it. Your truck is your livelihood. If it’s seriously damaged in an accident, you could be forced to pay for repairs out of pocket. Repairing trucks is expensive and the cost of an accident could jeopardize the future of your trucking business.
Truck cargo insurance covers the things you haul in your trailer. It’s not a coverage required by the Federal Motor Carrier Safety Administration (FMCSA), but most for-hire interstate owner operators will make you purchase it. If you don’t have it, they won’t hire you. The standard limit for cargo insurance is $100,000, but you may need a higher one if you haul particularly valuable cargo. Cargo insurance costs can be expensive, especially if your brokers or shippers require $1M coverage. In our study, $1M cargo insurance cost can be around $320-$680 per month.