If you’re a new commercial truck driver with a commercial driver’s license (CDL), you may be wondering how much insurance will cost you. Commercial truck insurance can be expensive, and it’s important to understand why and what types of insurance you need. In this article, we’ll provide information on new CDL driver insurance cost, including the types of insurance you need and common insurance providers.
- How much does new CDL driver insurance cost?
- What factors affect the new CDL driver insurance cost?
- How to find cheap new CDL driver insurance?
- Best insurance providers for new CDL drivers and trucking companies
- What vehicles can drivers with new CDLs drive?
- What insurance coverage do new CDL drivers need?
How much does new CDL driver insurance cost?
On average, new CDL driver insurance can range from $600 to $1,050 per month or $7,200 to $12,600 per year. However, it’s important to note that this is just an estimate and actual costs can vary significantly based on several individual circumstances.
This is the average cost for a comprehensive policy. If you are only interested in the minimum coverage that is legally required in all states, you may pay less, possibly half of the rates above.
Keep in mind that your rates will be very different from the average estimates depending on several factors of your own individual circumstances. Make sure you shop around with a few companies or work with a good broker to compare several quotes to find the cheapest one for you. We recommend the following carriers and brokers for your consideration:
- Progressive: Best Overall as a commercial vehicle insurance carrier that offers several discount programs
- biBERK: Best for affordable rates
- THREE: Best for comprehensive coverage
- Simply Business: Best for comparing several quotes to find the cheapest one
- Smart Financial: Best for cheap legally required minimum coverage
What factors affect the new CDL driver insurance cost?
Many factors impact the cost of new CDL driver insurance. Below are the main ones:
Age and driving experience
Insurance companies consider age and driving experience when determining insurance rates. Younger drivers with less experience are generally considered higher risk and may pay more for insurance.
Driving record
A new CDL driver’s driving record is an important factor in determining insurance rates. Drivers with a history of accidents, tickets, or other violations may pay more for insurance than those with a clean driving record.
Type of vehicle being insured
The type of vehicle being insured can also impact insurance rates. Larger vehicles, such as tractor-trailers, may be more expensive to insure due to their size and potential for more severe accidents.
Amount and types of coverage needed
The amount and types of coverage needed can also impact insurance rates. Drivers who need more comprehensive coverage, such as liability and cargo insurance, may pay more for insurance than those who only need basic coverage.
Insurance provider and location
The insurance provider and location can also impact insurance rates. Some insurance providers may offer lower rates for new CDL drivers than others, and rates can also vary by state and region.
Credit score
In some cases, a new CDL driver’s credit score may also be considered when determining insurance rates. Insurance companies may view drivers with lower credit scores as higher risk and may charge them higher rates.
It’s important to note that these factors can vary by insurance provider and individual circumstances, so it’s a good idea to shop around and compare insurance rates from multiple providers before making a decision.
How to find cheap new CDL driver insurance?
Commercial truck insurance for new CDL drivers is expensive. New CDL drivers can take the following steps to find cheap commercial truck insurance:
Shop around
Shopping around is a crucial step to finding affordable commercial truck insurance. Reach out to several insurance companies and brokers to get quotes for insurance policies. Be sure to compare the prices and coverage of each policy to find the best deal.
It’s important to note that the cheapest option may not always be the best option. Consider factors such as the deductible, coverage limits, and the insurance company’s reputation before making a decision.
Maintain a clean driving record
Maintaining a clean driving record is essential to getting cheaper commercial truck insurance premiums. Your safety record and driving history will be a factor in determining your insurance rates. Avoid accidents, traffic violations, and other incidents that can raise your insurance rates.
If you do have a blemish on your driving record, such as a speeding ticket or accident, consider taking a defensive driving course to improve your skills and potentially reduce your insurance costs.
Increase deductibles
Raising your deductible can reduce the cost of commercial truck insurance premiums. A deductible is the amount of money you pay out of pocket before your insurance policy kicks in. However, it’s important to consider whether you can afford to pay the deductible if an accident occurs.
Before choosing a higher deductible, make sure to calculate how much you can afford to pay out of pocket. Increasing the deductible may lower your premiums, but it could also lead to higher out-of-pocket costs if an accident occurs.
Consider the type of truck
The type of commercial truck you drive can impact your insurance premiums. Some types of trucks, such as older models or those with a history of accidents, may have higher insurance premiums.
Consider purchasing a newer or safer vehicle to reduce your insurance costs. Vehicles equipped with safety features such as airbags, anti-lock brakes, and backup cameras can also help reduce insurance costs.
Take safety measures
Taking safety measures can help reduce the risk of accidents and theft, which can lead to lower insurance premiums. Install safety features such as GPS tracking, alarms, and safety cameras to help protect your truck and cargo.
Regularly maintaining your vehicle can also help reduce the risk of accidents and breakdowns. Keep up with routine maintenance tasks such as oil changes, tire rotations, and brake inspections.
Bundle insurance policies
Bundling commercial truck insurance with other insurance policies can help reduce insurance costs. Consider bundling commercial truck insurance with general liability or workers’ compensation insurance policies to save money.
Insurance companies often offer discounts to customers who purchase multiple policies from them. Before bundling policies, make sure to compare the total cost of the bundled policies to ensure you’re getting the best deal.
Best insurance providers for new CDL drivers and trucking companies
There are many insurance providers that offer coverage for new CDL drivers and new trucking companies, including Progressive, biBERK, THREE, the Hartford, Simply Business, Smart Financial, Tivly, and InsurePro. Each provider has its own strengths and weaknesses, and some may be better suited for your business than others. When choosing an insurance provider, it’s important to consider factors such as cost, coverage options, and customer service.
What vehicles can drivers with new CDLs drive?
Drivers with a new CDL (Commercial Driver’s License) can typically drive a variety of commercial vehicles, including but not limited to:
- Straight trucks (also known as box trucks or cube vans)
- Large passenger buses (with a seating capacity of 16 or more passengers)
- Dump trucks – Learn more at the best dump truck insurance companies
- Flatbed trucks – Learn more at the best flatbed truck insurance companies
- Tow trucks (with some restrictions) – Learn more at the best tow truck insurance companies
- Box trucks – Learn more at the best box truck insurance companies
- Tanker trucks (with some restrictions)
- Refrigerated trucks
- Combination vehicles, such as tractor-trailers (with some restrictions)
It’s important to note that the specific types of vehicles that a new CDL driver can operate may depend on the type of CDL they hold and any endorsements they have earned. Additionally, different states may have slightly different rules and restrictions when it comes to CDL drivers and the types of vehicles they can operate.
What insurance coverage do new CDL drivers need?
New CDL drivers need several types of insurance coverage to protect themselves and their vehicles. Here are some important types of insurance coverage that new CDL drivers should consider:
Liability insurance
Trucking liability insurance is required by law in most states for commercial vehicles. This insurance coverage helps cover the costs of damages or injuries you may cause to another person or their property while driving your truck.
There are two types of liability insurance: bodily injury liability and property damage liability. Bodily injury liability insurance covers medical expenses, lost wages, and other damages resulting from an accident that you caused. Property damage liability insurance covers the cost of repairs or replacement of other people’s property that you damage in an accident.
Physical damage coverage
Trucking physical damage coverage is not required by law, but it’s an important type of insurance coverage for commercial truck drivers. This coverage protects your truck from damage resulting from collisions, theft, fire, or other covered events.
Physical damage coverage typically includes two types of insurance: collision coverage and comprehensive coverage. Collision coverage covers the cost of repairs or replacement if your truck is damaged in a collision with another vehicle or object. Comprehensive coverage covers the cost of repairs or replacement if your truck is damaged by something other than a collision, such as theft, fire, or natural disasters.
Cargo Insurance
Cargo insurance is an optional coverage that protects the goods you are hauling in case they are damaged or lost in transit. This insurance covers the cost of replacing or repairing the cargo if it is damaged, lost, or stolen during transport.
Cargo insurance is particularly important for truck drivers who transport valuable or fragile cargo, such as electronics or artwork. The amount of coverage you need will depend on the value of the cargo you are transporting.
Bobtail insurance
Bobtail insurance is a type of insurance that covers commercial trucks when they are being driven without a trailer or cargo. It’s sometimes referred to as non-trucking liability insurance.
Bobtail insurance is typically purchased by owner-operators who lease their trucks to motor carriers. When the owner-operator is driving the truck without a trailer or cargo, the motor carrier’s insurance may not provide coverage. Bobtail insurance fills this gap in coverage.
This insurance coverage protects the owner-operator from liability for accidents that occur while the truck is being operated for non-business purposes, such as driving to and from a maintenance appointment or personal use.
Bobtail insurance is optional, but it’s important for owner-operators who lease their trucks to motor carriers. It provides protection in situations where the motor carrier’s insurance may not cover the owner-operator.
Occupational accident insurance
Occupational accident insurance is an optional coverage that provides benefits to truck drivers who are injured while on the job. This insurance covers medical expenses, disability benefits, and death benefits for truck drivers who are injured or killed in a work-related accident.
This insurance coverage is important for independent owner-operators or truck drivers who are not covered by workers’ compensation insurance. Occupational accident insurance can help cover the costs of medical bills and lost wages if you are injured while driving your truck.
Uninsured/Underinsured motorist coverage
Uninsured/underinsured motorist coverage is an optional coverage that protects you if you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages.
This insurance coverage can help cover the costs of medical bills, lost wages, and other damages resulting from an accident with an uninsured or underinsured driver. This coverage is particularly important for truck drivers who spend a lot of time on the road and are at a higher risk of being in an accident with an uninsured or underinsured driver.
Why is commercial truck insurance so expensive?
Trucking insurance can be expensive due to a variety of factors. The size and weight of commercial trucks make them more likely to cause serious damage in an accident, which increases the risk for insurance companies. Additionally, commercial trucks are on the road for longer periods of time and are often subject to harsher driving conditions, which increases the likelihood of accidents and damage. Finally, the cost of repairing or replacing damaged commercial trucks can be high, which also contributes to the cost of insurance.
Here are some additional reasons why commercial truck insurance is more expensive:
Higher risk
Commercial trucks are used for business purposes, which means they are on the road more often and for longer periods of time than personal vehicles. This increases the risk of accidents and damage to the truck, cargo, and other vehicles on the road. The higher risk of accidents and damage leads to higher insurance premiums.
Specialized equipment
Commercial trucks are typically equipped with specialized equipment, such as refrigeration units or other machinery, which can be expensive to repair or replace. Insuring these specialized pieces of equipment adds to the cost of the insurance policy.
Cargo coverage
Commercial truck insurance often includes coverage for the cargo being transported, which can be expensive to replace if it is lost or damaged during transport. The higher the value of the cargo being transported, the higher the cost of insurance coverage.
State and federal regulations
Trucking companies must comply with state and federal regulations, which can include specific insurance requirements. These regulations can also increase the cost of insurance coverage.
How much insurance do I need for a trucking company?
Trucking companies typically need several types of insurance, including commercial auto insurance, commercial truck insurance, trucking liability insurance, and cargo insurance. According to federal regulations, trucking companies must have at least $750,000 in liability insurance coverage. However, the actual amount of insurance you need will depend on the size and nature of your business, as well as any additional requirements from shippers or brokers.
Why do trucking businesses need to have cargo insurance?
Trucking companies need to have cargo insurance because they are responsible for the goods they are transporting. If the cargo is lost, stolen, or damaged during transport, the trucking company may be held liable for the value of the cargo.
Cargo insurance provides protection for the trucking company against financial losses resulting from cargo damage, loss, or theft. This insurance coverage can also protect the trucking company’s reputation and help to maintain customer relationships.
Cargo insurance can cover a wide variety of goods, from general freight to high-value or specialized cargo. The amount of coverage needed will depend on the value of the cargo being transported.
Having cargo insurance can also help trucking companies comply with industry regulations and customer requirements. Many shippers and brokers require trucking companies to carry a certain amount of cargo insurance as a condition of doing business with them.
Overall, cargo insurance is an important type of insurance coverage for trucking companies to have in order to protect themselves financially and maintain their reputation in the industry.
How much is $100K cargo insurance?
The cost of cargo insurance for trucking companies varies depending on several factors, including the type of cargo being transported, the size of the truck, and the level of coverage required. Typically, 100K cargo insurance costs between $250 and $1,000 per year.
Do trucking businesses need to have trucking general liability insurance?
Yes, trucking businesses should consider having trucking general liability insurance as it provides important coverage for various risks that can arise in their operations.
Trucking general liability insurance is a type of insurance that helps protect trucking businesses from liability for accidents and injuries that occur during their operations. It covers damages and injuries that the trucking business may be held responsible for, such as property damage, bodily injury, and personal injury.
Here are some reasons why trucking businesses should have trucking general liability insurance:
Protection against property damage
Trucking general liability insurance can protect trucking businesses against claims for property damage. For example, if a trucking business is responsible for damaging a building or other property during a delivery, the insurance can help cover the costs of repairs.
Protection against bodily injury
Trucking general liability insurance can also protect trucking businesses against claims for bodily injury. For example, if a delivery driver accidentally injures a pedestrian while making a delivery, the insurance can help cover the costs of medical bills and other damages resulting from the injury.
Protection against advertising injury
Trucking general liability insurance can provide protection against claims for advertising injury. For example, if a trucking business is accused of using a competitor’s trademark in its advertising, the insurance can help cover the costs of legal fees and damages resulting from the claim.
Protection against products liability
If the trucking business is involved in the sale of products, it may be liable for injuries or damages caused by those products. Trucking general liability insurance can provide protection against claims for product liability, such as injuries or damages caused by defective or unsafe products.
Overall, trucking general liability insurance is an important type of insurance coverage for trucking businesses to have. It provides protection against various risks that can arise during their operations and can help protect the business’s financial assets and reputation.
How much is $1 million trucking general liability insurance?
The cost of $1 million trucking general liability insurance can vary depending on several factors, including the size and scope of the trucking business, the type of cargo being transported, the number of employees, and the location of the business.
That being said, a typical cost range for $1 million trucking general liability insurance is between $5,000 and $10,000 per year. However, it’s important to keep in mind that this is just an estimate, and the actual cost of insurance will depend on the specific details of the trucking business and the insurance policy.
Trucking businesses may also be able to purchase additional coverage beyond the $1 million limit if needed, which can increase the overall cost of the insurance. It’s important for trucking businesses to work with a reputable insurance provider to determine their specific insurance needs and obtain accurate quotes for insurance coverage.
Are diesel trucks cheaper to insure?
Diesel trucks are not necessarily cheaper to insure than other types of trucks. The cost of insurance depends on several factors, including the size and weight of the truck, the age of the driver, and the driving record of the driver. While diesel trucks may be more fuel-efficient and have lower maintenance costs, these factors may not necessarily translate into lower insurance premiums.
What type of insurance do I need for my semi truck?
If you own a semi-truck, you’ll need several types of insurance, including liability insurance, physical damage insurance, and bobtail insurance coverage. Liability insurance covers damage to other vehicles or property in the event of an accident, while physical damage insurance covers damage to your truck. Bobtail insurance coverage is designed for truckers who operate their vehicles without a trailer attached.
Many insurance companies offer semi truck insurance, here are our recommendations of the best semi-truck insurance companies.
Conclusion
If you’re a new CDL driver or starting a trucking business, understanding the types of insurance you need and the costs involved is crucial. While commercial truck insurance can be expensive, having the right coverage can protect you and your business in the event of an accident or loss. By working with a reputable insurance provider and understanding your coverage options, you can ensure that you have the right insurance for your needs.
