How Much Does Motor Carrier Insurance Cost?

One of the largest expenses for a motor carrier is truck insurance. With a cost of insurance that averages around $12,000 a year for new customers, for the minimum insurance requirements, the costs can add up. Most insurance policies for motor carriers have a one-million-dollar liability limit and a $100,000 cargo policy limit. Regardless of whether you are just starting as a motor carrier, or you have been one for years, there are numerous ways you can save on motor carrier insurance.

How Much Does Motor Carrier Insurance Cost?

The cost of your motor carrier insurance is dependent on how many vehicles you have, what types of insurance you get, but also the discounts you can find on your motor carrier plan. There are other ways to lower your insurance rates as well, which you can find information about in this article. In many states, the minimum liability coverage required by law for truck insurance for motor carriers is one million dollars in liability coverage. Many states also require a minimum limit of $100,000 in cargo insurance. Fortunately, you can find the best prices for motor carrier insurance available using the tips and information in this article. Don’t spend more than you need to on this type of insurance, use the tools here to get the best rates available.

Ways To Lower Motor Carrier Insurance Costs

There are several ways to lower your rates on motor carrier insurance. The first is to shop around and get quotes from multiple agencies. Getting free insurance quotes from multiple companies, each of which uses a different formula to determine rates than others, you can find the top prices. The online tools that Motor Insurance provides give you an easy and efficient opportunity to check rates at multiple companies and find the best policy that works for you at the top prices available.

Many companies offer discounts as well, including for drivers who have their CDL and, in many cases, for carriers that have been operating for three or more years. Many insurance companies do not advertise the discounts that they have, meaning that you will need to use the tools here or contact them in order to find more information or have discounts applied.

Some motor carriers choose to increase their deductible. A deductible is what you pay before an insurance provider starts to process the repairs you have claimed. This portion of your policy has some flexibility to it. Some people choose to opt for a lower deductible, so they will pay less if an accident occurs. Others choose a higher deductible, which costs more money if an accident occurs but lowers the monthly premium on the policy. Increasing your deductible is one way to save money on your motor carrier insurance premium, but keep in mind that you will need to be able to afford the deductible before repairs can start if you file a claim.

For people who can, paying for a motor carrier premium in full when you get it up can save you a lot of money. The auto insurance company knows that the entirety of the policy is paid up and will give a good discount for this knowledge. This can save people up to 15% or more on the total cost of their policies. Auto insurance providers prefer full payments, as do motor carrier insurance providers, so both types of insurance carriers provide heavy discounts when done.

The way you insure your trucks can also provide you with lower rates overall. If a business has multiple trucks to its name, it is generally better to put them all the same policy. It is still essential to shop around to find the best company to put them on, keeping in mind that you must communicate that you have multiple vehicles to insure. The cost of putting new trucks onto an existing policy goes down with each vehicle that is added. There are many statistical reasons for this, but the most important knowledge for you to have is that your plan prices, per truck, will go down for each truck you have added.

Also, there are many different types of coverage a person can get as a motor carrier. Some carriers to end up buying insurance coverage that they do not need. The essential coverages that are needed include liability insurance and cargo insurance. These are the types of coverage that are required by law. There are also coverages that most motor carriers will want to purchase, including physical damage coverage, and bobtail/non-trucking liability insurance. Other coverages that people consider, but are not always necessary, include general liability insurance and umbrella policy coverage.

Final Notes

Insurance held with a provider is generally the most expensive during the first year. After that, insurance premiums will drop. This can be a good reason to stick with an insurance carrier for multiple years. That said, shopping around using the tools on this site every few years is essential. Companies change the formulas they use to determine rates, and over time some companies may be cheaper for you overall for the same coverage and benefits.

06.07.23

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