How much Does Semi-Truck Insurance Cost?

How much Does Semi-Truck Insurance Cost?

April 29, 2020

There is no one-size-fits-all when it comes to commercial trucking insurance premiums. Several factors go into determining your unique insurance profile. Today I am going to discuss some of the factors that go into determining how much your truck insurance costs.

Location – Your location can have a huge impact on the price of a trucking policy. Someone that is operating a trucking company in rural Georgia or rural Florida is going to pay much less for insurance than someone that is operating out of Atlanta or Orlando. If your business is located near a large metropolitan area you can expect to pay more for your trucking insurance.

The Type of Cargo – Most clients are familiar with this factor. Someone hauling logs is going to pay a different rate than someone hauling groceries. Someone operating a dump truck is going to pay a different price than someone hauling cars. The type of cargo you are hauling has a major impact on your insurance premium.

Prior Insurance History – Your insurance history can have a large impact on your pricing. If your business has been insured for the past three years you are going to pay less for your insurance than a new venture in most cases. The more years of prior insurance you have the better your pricing will be on average.

Loss History – This is another one that is familiar to almost everyone. Your prior claims history will have a significant impact on your pricing.

Driving Record/CDL Experience – Most commercial truck drivers know how absolutely vital it is to keep their driving record clean. Your accident and violation history can have a significant impact on your premiums. Also, most carriers require at least 2 years of CDL experience for you to qualify for a quote. Some companies will allow as little as 6 months CDL experience but you can expect to pay heavy surcharges if you have a driver with less than 2 years CDL experience.

Credit – More and more often insurance carriers are looking at your credit when determining your pricing. These companies do not run a hard credit hit like you are getting a credit card. However, they do run a soft score based on your company name and address. This credit score can have an impact on your pricing.

The most important thing to remember is that an insurance policy is a very individualistic policy where many factors come into play.