As the years go by, it seems that there are more and more vehicles on the road and did you know that about 13% of all registered vehicles are commercial trucks? Additionally, 23% of all traffic on the road is comprised of trucking business.

Every vehicle on the road needs insurance coverage. But some vehicles need more coverage than others. Likewise, some vehicles are more expensive to cover. Commercial trucks fall into both of these categories as trucks that need more coverage and are more expensive to insure than an average-sized vehicle.

As a truck driver or owner-operator, it is vital that you understand the necessity of carrying commercial truck insurance. Though it can be expensive, it is more costly not to carry the proper coverage. When estimating what is the average cost of commercial truck insurance, it is necessary to understand the factors that affect the cost of trucking insurance.

Below is a brief breakdown of these costs to help you understand what is the average cost of commercial truck insurance.

Factors that Affect Semi Truck Insurance Costs

Determining the average cost of commercial insurance is not a one-size-fits-all equation. A number of factors can raise or lower insurance costs including where you live and operate your business, what type of business you conduct, and what type of coverage you need. Here’s a look at the different factors that determine your truck insurance costs.

Location of Business

In the United States, each state determines its own general liability insurance laws. Some states require higher coverage than others due to the amount of traffic on the roads and differing accident rates. Therefore, the state where you operate and conduct your business will determine your base cost for auto liability. Additionally, if you conduct business across state lines, you are subject to federal insurance laws and must select an insurance company that carries nationwide coverage.

Type of Cargo

The area of business you work in may also play a factor in your insurance costs. Not only must you carry insurance for the truck itself, but your insurance must cover the materials inside the truck. Cargo insurance for hauling lightweight or inexpensive materials such as paper and plastic goods is typically inexpensive. But a motor carrier moving expensive freight such as vehicles or hazardous material is more expensive to insure because the amount of property damage that could be sustained in an accident is much greater. Additionally, mitigating damage and cleaning up hazardous materials can be costly.

Driving Records

The vehicle and cargo aren’t the only factors in determining insurance costs. The driving history of your truckers plays a role in insurance costs. Therefore, hiring decisions can affect your business expenses. Drivers with a clean driving record are undoubtedly less expensive to insure than drivers with accidents, tickets, and infractions on their records.

Coverage and Deductible

Lastly, the type of insurance you need to carry and the coverage amount you select are the biggest factors in determining your insurance costs. You must carry the minimum requirements for liability and bodily injury, but choosing to carry more than the minimum will increase your costs.

Some of these choices may be less flexible and determined by the area of business you operate in, but there are some decisions you can make to decrease costs. For instance, carrying coverage with a high deductible may cause you to reach deeper into your pockets when an accident occurs, but it can lower your monthly costs significantly.

So, What is the Average Cost of Commercial Truck Insurance?

Quoting an exact insurance cost is impossible to do without knowing your business size and area, trucking history, location, and more. But to give a ballpark number, typically, you can expect to pay anywhere between $650 to $1000 a month on average, assuming you do not need specialty coverage or have unique circumstances.

Secure Affordable Truck Insurance

Shopping around insurance carriers is the best way to ensure that you are getting the best coverage for the lowest price. Not all insurance carriers are the same, and your selection can make a significant difference to your monthly insurance costs. Searching for companies and requesting quotes can be quite time-consuming, though.

At Independent Insurance Brokers Arizona, we make it our business to ensure that you have the best insurance coverage at the best price available. Our team works hard to ensure that your commercial auto insurance package covers all of your vehicles properly.

Call today to speak with a team member about your commercial truck insurance needs.