Semitruck Insurance: Providers, Coverage & Costs

Cody Cromwell
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Top Semitruck Insurance Providers

Semitruck insurance and cargo insurance is an important consideration for businesses that operate semi trucks since they carry hazardous materials for hire. Many large companies do not operate directly, but instead hire a third party for transportation services. It is unwise to leave business decisions to luck when it comes to safety and efficiency. Many companies have fallen victim to lack of care and oversight in their transportation details, whether they are new or established.

However, this does not mean that the business always has to hire a third party to ship their cargo. There are many transportation services that allow a business to ship directly to the intended destination through their own trucks. Some, such as the service offered by Uber Freight, go as far as to provide free insurance on top of the toll and fuel services offered by the shipping company. This type of service allows businesses to send their own trucks with no up-front costs. Instead of outsourcing the transport, businesses can take care of their own needs.

This does not eliminate the risk issues that arise with using different carriers for transportation. Shipping their cargo via a self-owned truck brings its own set of challenges. This article explores some of the issues that arise, including cargo insurance and liability coverage.

Progressive Commercial

One of the first things to think about when picking a commercial truck insurance company is the type of coverage you need – a minimum amount of liability coverage or rather a comprehensive business insurance package that meets your needs.

By choosing the right insurance provider, you can not only secure a high quality insurance policy, but also get additional benefits, which you will be hard pressed to find if you go with the regular providers.

There are, however, many things to consider before choosing the right insurance company for your business. While there are countless providers to choose from, the field is not as competitive as the car insurance industry. There are a few 'big players' in the market, and they are getting even bigger because they have traditionally served the big business community and have been able to amass a huge client base.

Since you are most likely going to trust your insurance company with a lot more money than your car insurance provider, it follows that you want the best of both worlds: quality coverage with a reputation for great service. For that reason, you may want to consider an 'independent' insurance provider that is not attached to any one company.

Lancer Insurance

Lancer offers road-side assistance, 24/7 roadside service, breakdown assistance and towing insurance. For motorists, this is important to know that a driver is 24/7 accessible should you stranded and unable to disconnect from your engine. This coverage is also included in the company’s full-coverage plans.

Through the company’s coverage, you could ensure you are fully covered. Your home is not covered by this, but family members are. This is as a result of a historical occurrence, where the company has paid claims on behalf of the family members. To find more insurance information, read the full profile for Lancer Insurance.

Commercialinsurance.net

Has compiled this list of the top ten semitruck insurance providers that offer the lowest rates.

Semitrucks load and unload their cargo using trucks called trailers. Depending on the type of trailer, cost can vary greatly. Semitrucks discharge their cargo via a thorough and efficient system aptly called, "truck-dolly".

If a company owns 20 semis, the truck-dolly is a long and flat platform, which sits on top of a steel frame. It can house up to 60 trailers. Some trailer sizes are shaped like a square or rectangular box with a width of approximately 7.92 feet or 300 inches and depth of 8.04 to 12.19 feet or 312 to 396 inches, depending on the part of the country or the trailer’s contents.

Rideshare companies encourage the use of semis because they offer better capacity. The combination of the semi and trailer can carry cargo that exceeds a 10-foot-wide trailer.

"The long, flat platform is supported by the truck’s front axle and rear suspension. The term used to describe the motion of the platform is gliding," says Travis Hayde, a spokesperson for Interline Transportation Association. "The gliding cause a semitrailer to slide when driving down a road."

CoverWallet

When it comes to truck insurance, you don’t have a whole lot of options. All the insurers will offer one basic insurance plan with slight variations. They will build a holder around the basic plan and make sure that it is as comprehensive as possible (for the resources they have), but that’s where the similarities end.

We only compare the best rated truck insurance companies. Here are our top picks:

General Semitrucks Extended Payment Term Coverage is a little different from the standard coverage available. With this plan, you can get a loan at the time of purchase that you can pay off over a set time period. This is a great plan for professional drivers who want to get the best coverage, but can’t run down their coverage period due to circumstances beyond their control.

HUB International

HUB International is a vehicle collision insurer that specializes in writing car insurance in Canada, from our headquarters in Toronto. Of course, our primary market is the United States. They offer a variety of policies below, which include a wide range of coverage—from Collision coverage to Uninsured motorist coverage. HUB International Insurance offers Insurance Coverage for Truckers and is a leading provider of coverage for Semi-trucks and Semi-tractor trailers. They offer safe and affordable insurance for HUB International policies.

If you are trucker or own a semi-truck, you must have truck insurance. Truckers are exceeding the majority of auto insurance applications in the United States.

All of the common types of insurance are for semi-trucks. Same as if you are driving a car, you must have liability insurance, collision insurance, and comprehensive insurance. You can also get commercial truck insurance with various discounts.

Proper insurance coverage for a semi-truck will provide benefits if the truck is struck by a bus, deer, or another vehicle while driving on the roads in the United States. This insurance will also help pay for damage to your truck if you are involved in a road accident with another vehicle.

With truck insurance, you can help save money on the repairs or replacement of your truck.

Types of Truck Insurance

Anyone who has ever been involved with transportation can attest to the fact that it can be a noisy and dangerous process. Because of the inherent risks associated with the industry, trucking companies often require that their drivers be experts in safe driving practices. The obvious benefit to the trucking company in this is that they can more effectively schedule their drivers and ensure that their employees follow the necessary procedures. To get a truckers trucking license, drivers must be trained and certified by the company that they work for and abide by specific policies, which will dictate the type of insurance associated with their truck.

There are three broad categories of truck insurance. Owners coverage is for personal injury and property damage to property other than the truck. Liability accounts for liability and personal injury lawsuits. And comprehensive insurance provides coverage for things like damage sustained during a natural disaster. There are also two different types of coverage that fall under liability insurance. The first is liability insurance, which deals with passengers, pedestrians and other motorists. And the other type of coverage is commercial liability, which will cover injuries and property damage in relation to products being transported.

Since the type of coverage that is required will heavily rely on the company that the driver is affiliated with, it is important that you speak to an insurance agent to find out what is required.

Most Common Types of Truck Insurance

Semitruck insurance is essential to ensure that the growing number of semitrucks on the road are insured and remain so … that’s good for drivers, brokers and carriers. The benefits are also significant for the trucking industry, which has grown exponentially over the past few decades. The underlying purpose of commercial insurance is to ensure the security of the transport company’s assets, prevent money loss from accidents and losses, and to cover the financial damages if something does happen.

The most common types of truck insurance are as follows: …

Third-Party Liability

This is an automobile insurance policy for a semitruck or trailer owned by the carrier. The policy covers the carrier either as a collecting underwriter (for an at-fault accident) or as an additional named insured on a property liability policy. This policy typically covers injuries, damage and the cost of repairs. Comprehension of the policy is vital and should be read thoroughly to ensure that you have sufficient coverage if something unexpected happens. For example, if a semitruck is being operated illegally, the policy may not provide coverage for damage incurred.

Purchasing Insurance Policy

General Liability Insurance

A semitrailer is a combination of 2-axle truck trailer that carries a load. The trailer can have a gross vehicle weight rating (GVWR) of between 26,001 and 34,001 pounds. The driving system of a semitrailer is similar to that of a conventional truck, with some exceptions. The typical semitrack has 2 sets of axles, each with a steering system and brakes.

Generally, semitrailers are subject to vehicle registration, driver log book and examination, and different vehicle requirements. For example, semitrailers are subject to emission control, highway safety, and safety standards.

General Liability Insurance is the insurance most companies require for their semi-trailers. It covers accidents in which the driver of an insured vehicle is at fault. The policy covers bodily injury and property damage resulting from lawsuits brought by victims against the trucking company.

Semitrailer insurance covers the company that owns the truck and other parties it serves, covering damage to property and injury to third parties. If the company transporting the load incurs an accident due to Negligence, such as a violation of a safety regulation or a poor driving maneuver, it could be held liable for any damage or injuries. Also, while a driver of a trucking company may have adequate auto insurance, additional coverage may be required by the company.

Trucking Liability Insurance

Automobile liability insurance covers you in the event you are involved in a car crash. "Trucking liability insurance" is essentially a built-in car liability insurance policy for truckers. It may also be called "automobile liability insurance for trucks".

Trucking liability insurance covers damage and/or injuries you may cause in a truck-related accident. It does not cover damages if you are intentionally involved in an accident.

For example, if a driver pulls out in front of your truck, it may be related to the truck driver's negligence. The driver in that example would fill out an auto insurance claim against the other driver, not their own trucking policy. There are exceptions to this type of claim, such as an "Act of God" clause or a "country club" clause where the driver's trucking insurance would cover similar liabilities, based on the contract between the driver and the insurance company.

Similar to auto insurance companies, trucking insurance companies are rated on their ability to cover claims. Some companies are more or less challenged to pay out claims at times.

Trucking insurance companies have strict financial requirements for truckers. For example, many companies will refuse to insure you if you don't have a certain number of miles. Also, truckers are required to maintain obeying speed limits at all times.

Nontrucking Liability Insurance

Nontrucking liability insurance pays out monetary damages to liability insurance carriers for damage caused by you or to someone else. This coverage protects other people who are injured or whose property is damaged, as well as the personal assets of yourself and your family. Some policies may cover medical payments due to the injuries of others, wrongful death, and loss of earnings. This type of insurance is helpful if you run a business or have employees that you need to compensate if their work is interrupted by your auto accident.

Bobtail Insurance

The Bobtail is the least expensive of semi-truck insurance policies most of the time. Tax rates savings are the primary reason Bobtails are considered the least expensive policy. However, you must consider that you are still fully responsible for the truckers tax(s) even though the truck insurance company pays the bill. Tax amounts vary by city, state, and country. Typically, larger cities have higher taxes, such as New York City, Los Angeles, Chicago, and Washington DC.

However, if you cross state or country borders, the truck insurance company will charge you extra for the extra tax you are required to pay. I recommend you seek out trust worthy companies that do not overcharge you (this is quite common for larger companies) and offer discounts based on longevity (often these companies are the cheapest start up).

To be safe, it's best to always check and double-check your insurance company rates.

Bobtail in its proper context means "short" or "short-tailed" semi. The short tail semi has its rear axle mounted far beyond the centerline of the trailer. This creates a shorter, rigid portion of the trailer that provides a lot of leverage and a favorable angle. The short tail semi has much less dead weight (approximately 50% of the total trailer weight) compared to a traditional semi.

Physical Damage Insurance

This is the most basic insurance. The physical damage insurance covers the repair costs for property damage. This is the bare minimum coverage. It does not cover damage to the cargo, people or vehicles.

There are some ways you can lower your insurance policy deductibles and this will reduce the amount of money that you have to pay for the repairs to your auto.

Motor Truck Cargo Insurance

Everything You Need To Know

Motor truck drivers face a number of risks as they transport goods across a variety of different types of terrains. The type of cargo and type of terrain that they transport can significantly impact the risks they may face while on the road.

One of the biggest risks are those associated with cargo, and in particular the goods that are being taken. It’s not just the dangers to your cargo that are a concern. In many cases, it’s also the facts that the cargo is more valuable that places more risk for the vehicle to sustain.

In fact, bodily injury, property damage, and cargo theft are some of the most common risks faced by motor truck drivers. However, this doesn’t even begin to scratch the surface of the risks that are facing larger truck drivers.

Workers’ Compensation Insurance

Additional Semitruck Insurance Coverages

Policy Holders are often interested discovering what additional types of coverage they have to protect their investment as well as their assets. Insurers also offer additional types of policies to include Accident Liability, Minority Interest, and Young Owner’s policies.

Accident Liability

This form of coverage provides for payments to be made for damages to third parties that are the result of an accident with a vehicle covered with this policy. For example, if a vehicle that was covered under an All-Risk policy was involved in an accident, the vehicle owner would be responsible for the damage caused to the third parties. Accident Liability provides a coverage level that can minimally compete with the State’s minimum liability requirements.

A separate form of Accident Liability can be arranged for each vehicle that is insured. This insurance is known as Excess Liability.

This insurance is available on a coverage level that provides the minimum coverage for the policy holder; however, it also can be a good option if the policy holder doesn’t want additional coverage on the policy, but wants to be fully protected if a claim is made.

Minority Interest

This policy provides partial coverage of the owner’s liability. It only protects the owner from claims against that person and is not available to insure vehicles while they are owned by the policy owner.

Trailer Interchange Endorsement

The biggest difference between the types of policies offered through insurance companies is the coverage provided. It’s possible for there to be a very small difference (they may offer a slightly lower premium) in the maximum value or total amount available for the policy holder, but the policies in terms of coverage should be the same.

Types of Coverage

The three different types of coverage offered for semi-trucks include:

  • Property damage including collision and comprehensive
  • Comprehensive combined (collision and comprehensive)
  • Collision coverage with third party liability

As a rule of thumb, collision coverage is required when you’re towing a trailer. If you’re not towing a trailer, it’s not required and you can make adjustments to your policy.

  • Comprehensive coverage is recommended to protect passengers in case of an accident.
  • When the trailer is not being used as part of the drive train, you can drop collision coverage and take advantage of the lower premium that it provides.
  • When it’s not being used as part of the drive train, the cost of comprehensive coverage is lower as well, which you might want to take advantage of.
  • Collision is coverage that covers the vehicle if it is damaged.

Hazmat Truck Insurance

The cost of truck insurance is highly dependent upon the risk of the company. Smaller operations that are mostly local and do not deal with diesel engines or hazardous materials are considered low-risk. Since the rates are low, also means that the operating costs are small (which are approximately half of the larger businesses), so travel and maintenance costs are generally minimal. Higher risks are associated with companies that take on work that potentially involves unstable chemicals, dangerous goods, and do not have the equipment to handle them safely. Many small independent companies only have one truck, while larger businesses can have anywhere between one to hundreds of trucks accessible to them.

If you are looking for trucking insurance, whether you have a single office or many trucks, you should contact a company that specialises in truck insurance. They will be able to provide you with all the necessary options and information that you would need to select the right insurance plan for your business.

Some smaller companies and sole traders do not always need the type of trucking insurance that others do. For instance, they do not carry dangerous goods or meet high standards set down by the company. This is why they may look for a self-employed policy which covers only their own policies. On the other hand, larger companies may be liable to meet certain requirements instead of the self-employed. In this instance, they will have many other trucks that are insured by other companies.

Livestock Cargo Insurance

Consist of a living animal, agricultural products, or crated cargo.

That Has Been Shipped in a Tractor-Trailer by a Farmer to Market

Maryland requires coverage for livestock at risk for a few days before exiting the state. Call your insurance agent or broker to determine coverage for this.

Be prepared to show whether the cargo is being transported to a slaughterhouse or for market sales.

Some carriers may also offer extra coverage for a perishable shipment if it is extra marked. Ask your agent.

Trucking Umbrella Insurance

Semitruck insurance, also known as "trucking umbrella insurance", is yet another type of commercial insurance you can add to your policy. However, this is a type of commercial insurance you should stay away from. Unless of course you're in the business of hauling semis. The reason why you should be wary of this policy is because it’s questionable as to whether the coverage is cheap enough to properly protect you from losses you may suffer throughout your business. Unlike some other commercial insurance carriers, most trucking insurance companies won’t reimburse you for property damage caused to other people and their property. That’s why it’s called "umbrella insurance", but it’s actually more like an "umbrella in a thunderstorm". You only get coverage for damage to your property. On top of that, this coverage is only available for the event that an event of declared. With that said, let’s take a closer look at it.

Identical coverage to standard commercial insurance policies, first the underwriting requirements for trucking umbrella insurance is the same. This means your financial health needs to be in good standing and you need to be in good standing with various financial institutions. Additionally, whoever handles your insurance needs to be able to prove they are financially sound.

Uninsured & Underinsured Coverage

Trucks are big, heavy, and often carry dangerous cargo. But when you’re operating a commercial vehicle, you have to pay attention to more than just your load!

Depending on your carrier, your commercial truck may come with additional coverage against damages caused to another driver’s car by your driving. This is called underinsured coverage, and this coverage comes at no cost to you.

But another type of coverage may also be available, called uninsured coverage. You’ll need to purchase uninsured coverage if you’re involved in an accident with a car that’s not properly insured, or if the car’s owner refuses to compensate you for damage to your property, injury to yourself or your employees, and more.

Both types of coverage, underinsured and uninsured, you´ll need to make sure to file a claim with your carrier within a certain amount of time.

But you shouldn’t use the post-haste policy for just any accident. These policies only cover damages to another person or company’s property, and not your property.

Commercial Truck Insurance Requirements Examples

Special trucks are fitted with goods within commercial vehicles. Commercial trucks can be big or small, depending on the number of wheels and weight of the vehicle. Special trucks are used to transport a variety of goods, including animal feed, construction materials, fuel, junk, and more.

If you own or drive a commercial truck more than six thousand pounds (three thousand kilograms), you need to buy insurance that addresses the liability and loss of financial losses associated with the vehicle. The liability portion of commercial truck insurance covers damages to other cars and people when one of your loads hits a fixed object. Liability insurance costs money because it does not cover the other costs associated with the trucking business. You might have to pay for:

  • Wage claims from your drivers
  • Replacement equipment and parts when they are damaged
  • Lost income
  • Suspension of your driving license if you are caught drinking or driving

The financial loss portion of commercial truck insurance pays for the repair or replacement of damaged items during your trip. For example, if your truck hits a pole and damages the side mirror on a car, you will pay for the collision repairs. Likewise, if your truck ends up in a ditch after making an illegal turn, you will pay for the damage to the truck.

Depending on the type of insurance you buy and the items that you carry, there can be other expenses associated with commercial truck insurance.

Insurance Filing Requirements

Like other insurance policies, the insurance coverages for semitrailers vary based on the type of truck you have and the configuration of that truck. You must provide documentation to the insurance company which purports to show that your truck is insured as required by law.

Choose a company which maintains an insured total value (ITV) or hull and equipment coverage value (HECV) for your truck. It is a rolling number and has no specific value and is used as a term to calculate the premiums by taking into consideration the particular details of your truck like weight, age, etc. The higher this insurance coverage is, the better. The price varies, but it helps offset any liabilities that may ensue following an accident.

Your company must request from you a statement from your private insurer or fleet history for the past three years. This is certified as a verifiable document by the Department of Transportation. Your insurance provider must request this documentation to determine your insurance coverage.

Select a motor vehicle policy to back your trailer. Make sure it has enough liability coverage and essential coverages like uninsured/underinsured motorist protection. If your truck meets an ATA standard, you can expect a lower premium for the overall coverage package. It might be more expensive to you if your truck has two axles.

Semitruck Insurance Costs

Semitruck Insurance Costs by Insurance Type

Backed by powerful reccuring advertisements and reference from a variety of websites, a number of individuals and companies straight forwardly say that semitruck insurance costs a greater amount in comparison to regular automobile coverage.

Depending upon the make and model of the truck, the cost for insurance will likewise differ. In that way, it is vital that you meticulously investigate the premium cost of each type of insurance in the marketplace.

Requisite Truck Insurance

For the most part, the insurance rates for containers are separated into three pre-determined types:

  • Passenger semis
  • Interstate Autonomic Class A Vehicles (Classes 2 & 3)
  • All other semi-trucks

Specific insurances for these three classes are inclined to cost marginally above normal autos, however its figures and pricing can differ from one office to another.

Even more, it could fluctuate from one insurance provider to another, dependent upon your truck's make and model, and where you are domiciled.

Front-Wheel Drive Semitrucks (FWDS) are generally more acceptable than rear-wheel drive trucks.

This is since FWDS get a front and back solid squad, which generally results an equivalent weight to a conventional rear-wheel semitruck.

Be that as it may, the costs for insurance may vary considerably.

Factors That Impact Semitruck Insurance Costs

Bottom Line

Use the right truck insurance provider! Not all insurance providers will offer you the same coverage for your truck.

Your insurance provider is the first port of call if you are in need of more information about your insured product or on how to claim in the unlikely event of a claim, whether it be a puncture, loss of load, theft or any other incident you and your fleet are covered for.

When looking to purchase insurance, the first thing to consider is your fleet size, whether or not your company uses the truck for business purposes, and whether or not you use your fleet as a service provider for third parties which are not your clients.

The next step is to try and figure out which provider will best suit your needs and the industry you work, and may include:

All of the above, it may seem like a minefield but figuring out which insurance provider is right for you can be made much easier if you are not sure which size fleet you have and if you have ever used your truck for business purposes.

As an example, a company with a small fleet of trucks may consider insuring their fleet through a company such as Swiss Santander as they can afford to provide a cheaper premium. Whereas, it may be better to insure your fleet through a company such as KBC or Everest as they will always cover your fleet for the maximum amount of loss.