What Is the Average Semi-truck Insurance Cost for Owner-operators?

May 11, 2022

Truck Insurance

What Is the Average Semi-truck Insurance Cost for Owner-operators?

Owner-operator trucking businesses are vulnerable to perils such as accidents, vandalism, theft, and natural disasters. These perils may result in bodily injuries, damage to the truck, and litigation, among other eventualities. As such, the right trucking insurance in Denver, CO, is essential. How much you pay for this insurance depends on factors such as ownership status, amount of coverage, and type of policy. For instance, while owner-operators with their own authority can pay up to $12,000 annually per truck on average, those operating leased trucks only pay anywhere from $ 3000 to $5,000. Read on to understand more about semi-truck insurance for owner-operators.

What Kind of Insurance Do You Need for a Semi-truck?

Common insurance coverages for a semi-truck include: 

Trucking liability insurance – This coverage pays for liability costs emanating from third-party injuries and property damage. For instance, if your semi-truck knocks down a pedestrian, this policy will cover the resulting medical costs, as well as legal expenses, if any.

Non-trucking liability insurance – This policy covers third-party liability costs, just like trucking liability insurance. It applies to accidents that occur when you're using the truck for non-business purposes.

Bobtail insurance – This policy pays for the damage that occurs on your truck when you’re driving it without the trailer for hauling equipment. It covers perils such as collisions, vandalism, natural disasters, and theft.

Physical damage policy – This policy pays for the damage that occurs on the load you’re transporting.

Other essential coverages include motor truck cargo insurance, general liability insurance, uninsured motorist policy, and umbrella insurance.

How Much Is Semi-Truck Insurance?

Since the onset of the pandemic, the cost of insurance for commercial trucks has been rising steadily. Depending on your coverage options, you can now pay up to $30,000 per year for coverage. As such, owner-operators with new authorities are paying more for semi-truck insurance than those with older authorities. In comparison, owner-operators with leased trucks typically have fewer insurance needs and, therefore, spend less on semi-truck insurance. Even so, this cost varies depending on the factors discussed below.

What Impacts Your Semi-Truck Insurance Costs?

The cost of semi-truck insurance depends on factors that include, among others, ownership status, type of cargo, credit history, truck value, distance traveled, the weight of freight, driving history and experience, size of the deductible, and the coverage limits on each policy. For instance, if you own a high-value truck, you will likely pay more for insurance than someone with a lower-value truck. 

How Can You Lower Your Semi-Truck Insurance Costs?

Disregarding the COVID-19 pandemic effects, the cost of insuring a truck has always been higher than that of an ordinary car. This is due to the difference in the replacement costs of these two types of automobiles. The good news is that it is possible to lower semi-truck insurance costs using these tips: 

  • Maintain a clean driving record
  • Pay your annual semi-truck insurance premiums in a lump sum
  • Raise your deductibles
  • Lower the policy limit 
  • Ensure all your fleet trucks from the same insurance provider
  • Choose safer trucking routes
  • Upgrade your trucks

How Riverbend Insurance Can Help

To protect your owner-operator trucking business from unnecessary financial losses, it’s important to get the right trucking insurance in Denver, CO. If you are looking for affordable and customized trucking insurance, contact us at Riverbend Insurance today. Our experienced insurance agents will create the best trucking insurance policy for you.