What is Commercial Trucking Insurance & How Does It Work?

Key Takeaways

Commercial trucking insurance shields your business from major financial losses after a crash or claim.
Standard protections include property damage, bodily injury, and cargo loss/damage.
It’s essential coverage for companies that move goods nationwide, where risks and costs can escalate quickly.
More than 400,000 commercial-vehicle crashes occur each year in the U.S., so adequate trucking insurance coverage is crucial to helping safeguard assets and livelihoods.

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At FreightWaves Checkpoint, our mission is to provide truckers and fleet owners with data-driven, unbiased insights into the products and services that keep the industry moving, including trucking insurance.

We analyzed dozens of trucking insurance providers nationwide, focusing on important factors like pricing transparency, coverage options, claim handling, financial strength, and customer satisfaction. We also studied real driver feedback and online reviews to understand how each insurer performs in the real world in terms of claims support, responsiveness, and ease of policy management.

Our editorial team thoroughly fact-checks all content to ensure the information is accurate, current, and relevant to what matters most to truckers looking for reliable insurance protection.

What Is Commercial Trucking Insurance?

Trucking insurance is a specialized form of commercial vehicle insurance designed to protect trucking companies and independent drivers from financial risks associated with operating large commercial vehicles.

It covers a variety of potential liabilities, including:

Primary liability insurance: Damages caused to others
Physical damage coverage: Repairs for the truck itself
Cargo insurance: Protection for the goods being transported

Additional coverage types, such as non-trucking liability and bobtail insurance, address specific needs like driving without a trailer or for personal use. Federal regulations — particularly those set by the Federal Motor Carrier Safety Administration (FMCSA) — mandate minimum coverage levels for trucking operations based on cargo type and route, ensuring compliance and safety.

The cost of trucking insurance is influenced by multiple factors, including:

The driver’s safety record
The truck's value
Type of cargo
Distances traveled

Many insurance providers offer discounts for safe driving practices or technology integrations like GPS tracking to minimize risks. By offering financial protection and legal compliance, trucking insurance plays a vital role in maintaining the stability and reputation of businesses in the transportation industry.

What Is Long-Haul Trucking Insurance?

Long-haul trucking insurance provides coverage for damages to property or injuries sustained by individuals in the event of an accident. These policies are for truckers traveling more than 250 miles.

How Does Long-Haul Trucking Insurance Work?

Long-haul trucking insurance works just like any other commercial trucking policy. The truck owner buys the coverage and lists any additional drivers for that vehicle. If there’s an accident, the driver files a claim with the insurance company. The insurer investigates to confirm the incident is covered and then pays out according to the policy’s benefits.

How Does Commercial Trucking Insurance Work?

Commercial trucking insurance offers coverage based on factors like your vehicle type, driver experience, driving record, and the truck’s age or condition. It mainly provides liability protection to cover damages and injuries from accidents.

Premiums tend to run high because trucking comes with major risks. Big rigs can cause serious damage in a crash, and repairs or replacements aren’t cheap.

This insurance also covers injuries to others and damage to public property. To keep everyone protected, the FMCSA requires both public liability and property damage coverage.

FMCSA-mandated minimum liability limits include:

Vehicles Hauling Non-Hazardous Freight

$300,000 for vehicles under 10,001 pounds
$750,000 for vehicles over 10,001 pounds

Vehicles Hauling Hazardous Freight

$1,000,000 for-hire and private carriers hauling oil
$5,000,000 for-hire and private carriers hauling other HAZMAT items

You’ll need proof of public liability insurance to get your operating authority. Depending on your business, you might also need additional coverage types.

Common Types of Trucking Insurance

Dump trucks
Semi-trucks
Flatbeds
Tow trucks
Box trucks

In addition to the liability and physical damage, you may want to explore the following options:

Non-liability trucking insurance: Covers accidents that happen when you’re using your truck for non-business purposes
Cargo insurance: Protects you from financial loss if the freight you’re hauling is damaged by an accident, bad weather, theft, or other unexpected events
Bobtail insurance: Provides liability coverage for owner-operators after a load is delivered, as long as you already have standard liability insurance
Trailer interchange liability: Protects non-owned trailers you haul under a trailer interchange agreement against fire, collision, theft, or explosion

What Commercial Truck Insurance Covers

Auto liability: Covers legal fees and medical expenses if your truck causes injury or property damage in an accident
Collision coverage: Pays to repair or replace your truck if it’s damaged in a crash, regardless of who’s at fault
Comprehensive coverage: Protects your vehicle against non-collision losses such as theft, vandalism, or natural disasters
Uninsured motorist coverage: Covers your costs if you or your passengers are injured by a driver who doesn’t have insurance

Note: Commercial truck insurance applies to all trucks owned and operated by your business.

What Commercial Truck Insurance Doesn’t Cover

Personal vehicles: Commercial truck insurance only applies to vehicles owned or operated by the business. Personal trucks used for work errands aren’t covered.
Intentional damage or illegal activity: Any losses caused by deliberate acts, reckless behavior, or illegal operations are excluded.
Maintenance issues: Mechanical failures, worn parts, or damage due to poor maintenance aren’t covered under your policy.
Unlisted drivers: If someone who isn’t listed on your policy drives the truck and causes an accident, your claim may be denied.
Unauthorized cargo: Transporting goods not disclosed in your policy, or cargo outside your insured operations, may void coverage.

Pro tip: Always review your policy details with your insurance provider to understand what’s covered—and what’s not—before hitting the road.

How To Choose the Right Commercial Vehicle Insurance

You don’t want to settle on a policy just because it’s cheaper, especially if it does not provide the ideal amount of coverage for your company.

To make an informed decision, follow the steps below.

Step 1: Determine Your Coverage Needs

When you’re choosing insurance you must decide the type of coverage that is best for your needs.

An agent can help you determine appropriate limits for:

General liability
Physical damage
Uninsured/underinsured motorists
Comprehensive coverage
Medical payments
Cargo coverage

Other available options include:

Trailer interchange coverage: Covers the trucker who is pulling the trailer when an incident occurs.
Rental reimbursement with downtime coverage: Covers the cost of renting a truck for business use while yours is being repaired after an accident.
Non-trucking liability: Covers property damage and medical expenses that occur when you’re driving your truck for personal reasons.

Step 2: Choose Your Deductible

After deciding what types of coverage you need, the next step is to choose your deductible. The deductible is the amount you’ll pay out of pocket before your insurance kicks in after a claim.

In general, a higher deductible means lower monthly premiums, while a lower deductible increases your premium but reduces your upfront costs if an accident happens. Think about your business’s cash flow and how much risk you’re comfortable taking on when choosing a deductible amount.

For many trucking companies, finding the right balance means selecting a deductible that keeps premiums manageable without creating financial strain after an incident. Discuss your options with your insurance agent to determine what makes sense for your operation and budget.

Step 3: Shop Around

Before choosing a commercial vehicle or truck insurance company, it’s best to shop around and learn as much as you can about the different types of coverage. It’s important to compare several companies to determine which one provides the most benefits for your money.

You can avoid a lot of hassle by contacting an insurance broker. A broker is well-versed in the different types of insurance policies available for commercial truckers. They can save you a lot of time and ensure you get the best coverage that fits your budget.

An insurance agent can also be helpful in choosing the right policy. They only represent one insurance company and are knowledgeable about the specifics of that company’s options.

Step 4: Compare Quotes

If you prefer to do the research yourself, getting an online insurance quote is a good way to begin. Most insurance providers give online quotes and allow you to sign up for the insurance directly on the company’s website.

When comparing several quotes at once, make sure each one is quoting for the same amount of coverage. You can also ask for a sample policy from the providers to help you compare quotes and coverage.

Step 5: Ask About Discounts

After comparing quotes and checking the provider’s financial strength, you’re ready to make a decision. But, first, you may want to inquire about discounts that may be available.

Many insurance companies offer these discounts:

Paid-in-full: Provides a lower premium if you pay the full year premium upfront
Smart-haul: If you have an ELD and share your driving data with the insurance provider, they might offer safe driving discounts ranging from 3%-20%
Multiple-policy: Having other insurance policies with the provider can result in lower premiums
Good-claim-experience: Drivers who have been in business for more than one year and have few or no claims can qualify for discounts

Step 6: Check the Claims Process

Before you commit to a policy, take a close look at how the insurance company handles claims. You want a provider that’s financially stable and known for paying claims quickly and fairly.

Start by reviewing the company’s financial strength through trusted sources like AM Best, S&P, and Moody’s. These ratings show whether the company has the resources to cover large payouts when you need them most.

Take a look at the company’s reputation with customers. Check ratings and reviews from the Better Business Bureau and J.D. Power to see how satisfied other policyholders are—especially with how claims are handled.

You should also pay attention to the company’s claim settlement ratio. A ratio between 95% and 97% is a good sign that the insurer processes most claims efficiently and fairly.

Step 7: Understand Your Policy Terms

Insurance policies can be tricky to read, but it’s important to know what you’re agreeing to before you sign. Taking time to understand the details now can help you avoid problems later if you need to file a claim.

Start by looking over the declaration page, which is the first section of your policy and gives a quick overview of your coverage. The insuring agreement explains what the company will pay for, while the exclusions page lists what isn’t covered.

Pay attention to the conditions section, too. These are the rules you have to follow for your coverage to stay valid. If you don’t meet them, your claim could be denied.

Be sure to read the definitions section to understand how certain terms are used, since small wording differences can change how coverage applies.

Take a close look at any endorsements and riders as well. These describe any changes — additions, deletions, or updates — to your policy, and it’s worth making sure you’re clear on what they mean before signing.

FAQ

What is non-trucking liability insurance?

Non-trucking liability insurance provides coverage for owner-operators when they’re driving their truck for personal reasons, not business. It fills the gap between trips when you’re not under dispatch or hauling a load for a motor carrier.

This type of policy covers things like property damage or bodily injury if you’re involved in an accident while using your truck for errands or personal travel. It does not cover accidents that happen while you’re working or using the vehicle for business purposes.

How much does trucking insurance cost?

On average, commercial truck insurance costs between $8,000 and $12,000 per truck per year for primary liability coverage. However, premiums can vary widely depending on factors like driving history, cargo type, and your truck’s age or condition.

Other elements, such as your location, routes, and deductible amount, also play a role in determining cost. Owner-operators with clean driving records and experience often qualify for lower rates than new drivers or companies with frequent claims.

Does it cost more to insure a commercial vehicle?

Yes. Commercial vehicle insurance generally costs more than personal auto insurance because trucks are larger, heavier, and can cause significant damage in an accident. Repair and replacement costs are also higher due to the size and specialized parts of commercial vehicles.

Insurance providers calculate premiums based on risk, which includes the type of vehicle, how it’s used, and the cargo it carries. Businesses that manage these risks well—through safety programs and driver training—can often reduce their premiums over time.

Does commercial insurance cover personal use?

Not all commercial truck insurance policies include personal use. Most standard commercial policies only apply when the truck is being used for business operations like hauling freight or traveling to a job site.

If you also use your truck for personal trips, you may need non-trucking liability or bobtail insurance. Talking with an insurance agent can help you find the right mix of coverage for both business and personal driving.

Who is insured under a commercial auto policy?

Coverage under a commercial auto policy usually extends to the business itself, the vehicle owner, and any employees or drivers listed on the policy. The business owner sets up the policy to protect company vehicles used for work purposes.

Most policies include three main parts: physical damage, liability, and optional endorsements or add-ons. Reviewing each section helps you understand who’s protected and under what circumstances coverage applies.

What kind of insurance do I need for a truck?

At a minimum, you’ll need primary liability insurance, which covers damages or injuries you cause to others while driving. Most trucking companies also carry cargo insurance, physical damage coverage, and workers’ compensation if they employ drivers.

Depending on your operations, you might also need additional protection like non-trucking liability, trailer interchange, or rental reimbursement coverage. An insurance agent can help tailor a plan that fits your specific needs and routes.

Can a trucking company be self-insured?

Yes, but only large and financially stable trucking companies typically qualify to self-insure. They must meet strict federal and state guidelines and demonstrate that they can cover potential losses without relying on a traditional insurer.

This often involves proving strong financial reserves and a history of safe operations. For most smaller carriers, purchasing commercial truck insurance remains the more practical and affordable option.

What is HGV insurance?

HGV (Heavy Goods Vehicle) insurance is the UK and European equivalent of commercial truck insurance. It covers large trucks that carry goods or materials for business purposes.

Policies typically include liability, cargo, and damage coverage, just like U.S. commercial trucking insurance. The main difference lies in terminology and regional regulations that affect how the coverage is structured.

What is required to be eligible for commercial truck insurance?

To get commercial truck insurance, you’ll need an active motor carrier (MC) number and a USDOT number from the Federal Motor Carrier Safety Administration (FMCSA). These show that your business is authorized to operate legally.

You’ll also need to provide a certificate of insurance before driving on public highways. Some insurers may ask for proof of driver experience, safety records, or maintenance documentation as part of the approval process.

What kind of insurance do truck drivers need?

Truck drivers generally need liability insurance, which covers damages or injuries they cause, and physical damage insurance, which covers repairs to their own truck. Many also carry cargo insurance to protect the goods they haul.

Owner-operators may add non-trucking liability, bobtail, or occupational accident insurance for extra protection. The right combination depends on whether the driver operates independently or under a carrier’s authority.