What You Should Consider Before Purchasing Commercial Truck Insurance

What You Should Consider Before Purchasing Commercial Truck Insurance

Shopping for truck insurance can take ages. But exploring all your options is key to getting coverage that’s worth the money. You’ll spend thousands of dollars a year insuring your truck, so why not make sure you get what you deserve for your biggest investment?

commercial trucking insurance company

These are a few things you may not have considered when it comes to buying semi-truck insurance. Keep all of these in mind as you identify your needs, compare policies, and get ready to buy your coverage. 

Your Projected Income

Insurance is one of the largest business expenses any truck insurance online faces. The more rigs you have, the higher your costs. This means forecasting your income is crucial if you want to make a profit. Rather than just looking at your existing budget, consider how your needs may change and what policies you can reasonably afford in the next year.

Your deductible is how much money you have to pay before you can receive the benefits of a policy. If you agree to an unreasonably high deductible for a low monthly premium, you could set yourself up for financial ruin in the event of an accident or other incident.

How much you intend to earn this year should be directly correlated with how much of a cut you can afford to reach your deductibles. Premiums are most truckers’ greatest concern, but the amount you’ll need to pay out-of-pocket before your policy is paid off should also be taken into consideration.

Your Cargo

Everyday commodities are far less expensive to insure than high-risk cargo. Commercial truck insurance companies have a larger pool to insure common loads which drives the price down.

Drivers who operate under their own authority will have greater insurance requirements than those who work under motor carriers. Could you run more jobs with less risky cargo and make the same amount of money that you would hauling a high-risk commodity? 

It’s important to tie down your trucking niche early in the game if you want to find the best loads, but do not take on jobs that are beyond your insurance budget. 

The Distance You Drive

You may be paid more for long-haul drives. But they pose more of a risk to commercial truck insurance companies and will cost you more in the long-run. If you’re just starting out as a trucking company or driver, consider sticking to intrastate loads until you’ve got enough experience and financial support to properly insure OTR jobs. 


Drivers with clean records and CDL licenses can qualify for insurance discounts. If you’re a new venture or recently received your trucking license, wait a few years before you take on more high-risk jobs. Commercial truck insurance companies highly value experience. Transporting goods within your state can still be a lucrative business, and you’ll find that it’s more affordable to insure future endeavors if you build up a good driving record first. 

Truck Value

Your truck or fleet might be the lifeblood of your business, but their value depreciates over time. The lower your truck’s market value, the less you’ll be paid for a replacement by an insurance company.

Semi-truck repairs and replacements are covered under a physical damage insurance policy. Insurance companies will pay you the lowest amount between your truck’s actual cash value (ACV) and the stated amount you provided when you purchased the policy. Unfortunately, many drivers tend to overestimate the cost of their vehicle, thinking that they’ll receive that amount in the event their truck is totaled. In reality, providers will use the market value of a rig.

Keep in mind truck values not only deplete over time, but also might not be worth repairing. Be realistic about how much you insure a truck that’s getting on in years and consider upgrading your rigs to more reliable models. 

Fuel Costs

Semi-truck fuel can cost upwards of $70,000 a year. You absolutely must consider the cost of powering your rig and its maintenance before you buy insurance. Monthly premiums are only one routine expense you’ll have to pay as a driver, so make sure you fully understand how much your annual costs will be and plan accordingly. 

Save money where you can, but don’t leave yourself underinsured just to save a couple hundred dollars. List your truck driving essentials in order so you can calculate your expenses, consider their return on investment and select policies that suit your needs and budget. 

Safety Programs

Safe drivers save money. Commercial truck insurance companies appreciate and will reward companies who put safety first. If you hire drivers for your trucking company, make sure they all partake in routine safety programs and have clean driving records. Employing safer drivers doesn’t just lower your insurance premiums, either. Better drivers qualify for more discounts and are less likely to be involved in an accident. You’ll also have less to worry about when it comes to theft, damages and other incidents caused by driver negligence on the road.

Handing a driver the keys to your rig is a huge leap of faith; only hire those you feel you can trust, and implement programs that allow them to become even better at their jobs. 

Purchasing Trucking Insurance

If you’re looking to work with someone that can provide you with competitive options for your motor truck cargo insurance, reach out to the Truck Insurance Pros. Truck Insurance Pros has been in the insurance business since 1947. They’ve got the experience and know how you’ve come to expect and depend on. 

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