Do I Need Commercial Trucking Insurance?

if you drive a commercial vehicle, you should a commercial trucking insurance policy!

If you drive a commercial truck, then it’s worthwhile to get commercial trucking insurance. There are unpredictable events that could result in financial losses and time in court. This can be avoided through commercial trucking insurance.

Types of vehicles covered

A vast selection of vehicles will qualify for commercial trucking insurance. There’s more than just the typical 18-wheeler.

Commercial trucking insurance can cover:

  • Tow trucks
  • Ambulances
  • Fire trucks
  • Garbage trucks
  • Ice cream trucks
  • Cement trucks
  • Dump trucks

Types of costs covered

Commercial trucking insurance offers coverage for certain costs up to plan limits. It accounts for personal injury (both for the driver and another person), truck and other vehicle damage, and general liability. This can help with medical bills and attorney fees as well.

How truck size and cargo impact cost

The Federal Motor Carrier Safety Administration assigns minimum insurance coverage amounts based on the truck’s size and the type of cargo. Lighter trucks with non-hazardous cargo will not have the same minimum coverage amount that a heavier truck carrying dangerous or explosive items would. Higher costs also apply to private or for-hire trucks.

These are the minimum insurance coverage amounts:

  • Truck less than 10,001 pounds carrying non-hazardous cargo – $300,000
  • Truck weighing 10,001 pounds or more caring non-hazardous cargo – $750,000
  • Private carrier transporting oil – $1 million
  • Private carrier transporting other hazardous materials – $5 million

Extra cargo transporting household goods requires a minimum added cost of $5,000 per vehicle and $10,000 for every occurrence.

Other variables influencing the cost

Overall costs between insurance companies vary from one to the other, with the average monthly premium being between $795 to $931. 

In general, however, insurance companies base their rates on these metrics:

  • Driver’s age and level of experience
  • The individual’s driving record
  • Travel radius
  • Desired coverage limits
  • Location

This makes sense, as an experienced driver will be less prone to accidents. Shorter routes have less potential for collisions, because of the shorter time spent on the road. And some locations have very dense traffic, increasing the likelihood of an accident.

Need commercial trucking insurance?

If you’re a commercial truck driver, it’s imperative that you get commercial trucking insurance. You will be covered for anything that happens on the road, and we at Redwood Agency Group will be glad to provide that peace of mind. Reach out to us and we’ll contact you in any way you choose.