Understanding Commercial Truck Insurance
Proper insurance coverage is essential for any trucking operation. This guide covers everything you need to know about protecting your business.
Required Coverage Types
Liability Insurance
The foundation of commercial truck insurance. Liability covers bodily injury and property damage when you're legally responsible for accidents.
DOT Minimum Requirements:
- General freight: $750,000
- Household goods: $750,000
- Hazardous materials: $1,000,000 - $5,000,000
Cargo Insurance
Protects transported goods from damage, theft, or spoilage. Most brokers require minimum $100,000 cargo coverage.
- Covers goods in transit
- Protection against theft
- Weather damage coverage
Physical Damage Insurance
Covers your truck and trailer through:
- Collision: Accidents with other vehicles or objects
- Comprehensive: Fire, theft, vandalism, weather
Additional Coverage Options
- Bobtail Insurance: Covers trucks operating without trailers
- Reefer Breakdown: Protects against spoiled cargo from refrigeration failure
- Umbrella Insurance: Extra liability beyond primary limits
- Hazmat Insurance: Required for dangerous materials
- Truck Theft Insurance: Covers stolen equipment and cargo
- Loading Dock Coverage: Protects against docking accidents
DOT Compliance Requirements
All commercial truckers must:
- Maintain DOT-mandated liability minimums
- File proof of coverage with FMCSA
- Keep insurance active to maintain operating authority
Average Insurance Costs
| Coverage Type | Annual Cost Range |
|---|---|
| Liability | $5,000 - $12,000 |
| Cargo | $400 - $1,800 |
| Physical Damage | $1,000 - $3,000 |
| Bobtail | $300 - $500 |
| Full Coverage Package | $12,000 - $18,000 |
Tips to Reduce Insurance Premiums
- Maintain a clean driving record
- Install safety equipment and dash cameras
- Use telematics monitoring
- Pay annually instead of monthly
- Bundle multiple coverages
- Keep detailed maintenance records
- Complete safety training programs
- Increase deductibles where appropriate
Recommended Insurance Providers
- Progressive Commercial
- Berkshire Hathaway / National Indemnity
- Great West Casualty
- Northland Insurance