Semi truck insurance costs can differ widely because insurers evaluate many factors when they determine premiums. As with all small business insurance, how much your truck insurance costs depends on how your insurer weighs these factors:
- Ownership status: If you’re an owner-operator on a permanent lease, the motor carrier generally covers your public liability, which greatly reduces your overall insurance costs.
- Cargo type: Risks, and therefore premiums, typically are much lower if you’re hauling hay compared to hauling a hazardous material like fuel.
- Weight of freight: Heavier loads usually translate into higher premiums.
- Driving distance: The farther you travel, the greater the risk of an accident, and that impacts your premium.
- Truck value: Physical damage premiums are a percentage of the truck’s value, so more valuable trucks cost more to insure.
- Type of physical damage coverage: Insuring for your truck’s actual cash value results in a higher premium.
- Credit history: Insurers check credit scores and history to help determine if you’re a good risk. Loss history: Insurance companies often decrease premiums for truckers who file few claims.
- CDL experience: The more experience you acquire after obtaining your commercial driver’s license (CDL), the less risk you present to an insurance company.
- Deductible amount: Higher deductibles mean lower premiums. If you can afford to pay more out of pocket on a claim, then you might want to raise your deductible.
- Coverage limits: Policy limits are the amount the insurer pays for claims.
