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Why Is Semi Truck Insurance So High? (11 Money-Saving Tips)

Have you always struggled to find affordable semi-truck insurance? Want to find out how you can reduce the overall costs of your semi truck’s insurance?

Read on to find out why your semi truck’s insurance might be high and how you can lower it.

Here’s a Short Answer to Why are Semi Truck Insurance so High:

Semi truck insurance is expensive because more risk is involved in covering them for incidents. Semi truck insurance can be more costly if you’re using older semi trucks that aren’t well maintained and drivers with less experience and a poor driving record.

What is the Average Cost of Semi Truck Insurance?

Insurance for semi trucks can vary greatly depending on some factors. It’s important to know these factors to understand where you lie in the spectrum.

The average semi-truck insurance cost for owners that lease their semi-trucks to motor carriers is between $3000 and $5000 per truck.

If you’re a semi truck owner operating on your authority, you can expect to pay even more, with an average insurance cost of between $9000 and $12,000 per truck.

If you’re a new semi-truck owner, insurance costs have spiked massively in the past few years, and you could expect to pay up to $16,000 per truck.

Why is Semi Truck Insurance so Expensive?

Semi truck insurance is costly, mainly because there is a bigger risk of causing damage to your semi truck or other property when you are transporting goods or people for money.

Commercial semi trucks often drive long routes and encounter a lot of traffic. On top of that, they need to brave different weather conditions, which causes a higher risk of being involved in an incident.

In 2020, insurance rates for semi-trucks would increase by 100-300% simply because the insurance industry is unable to profit.

With the industry being unable to profit, the sector is at risk of being unable to “attract capacity and capital to try and turn the market,” said Ryan Erickson, executive vice president at insurance brokerage firm McGriff Seibels & Williams.

Until we see insurance companies making a profit, we will see a consistent rise in the cost of semi-truck insurance.

What Affects the Price of Semi Truck Insurance?

The price of semi truck insurance depends on a couple of factors. These vary between the semi truck itself and the driver.

The age of the semi truck influences the cost of the insurance as older semi trucks could be more unreliable and more challenging to drive.

The maintenance history needs to be kept up to date if you want the best possible semi truck insurance, which will reduce the risk of anything going wrong.

Safety features on the semi-truck are also important. Many modern semi trucks have superior technology and safety features that assist the drivers and prevent accidents.

The type of cargo and the weight of the semi truck also influence. More expensive and heavier cargo means more money and more risk.

When it comes to the driver, a big focus for semi-truck insurance companies is the age and experience of the driver.

Younger and less experienced drivers are at a higher risk and are more likely to make mistakes or be involved in accidents.

The driver’s employment history can also play a role, as the driver might not have experience in hauling the specific cargo you will be hauling.

What are the Costs of the Different Semi Truck Insurance Types?

There are a few different types of semi truck insurance that you can take out, so it can quickly become confusing to try and choose one.

The first insurance type is primary liability insurance, which will cost you between $5000 and $7000 on average, and it covers any damage caused to the semi-truck while driving.

The next type of insurance is physical damage insurance. Costing around $1000 to $3000, this insurance will cover any damage to the semi-truck where the driver is not at fault, in other words, theft, vandalism, or extreme weather conditions.

Occupational accident coverage is another semi truck insurance policy that pays out on injuries, medical bills, and income replacement. This can cost between$1600 to $2200 per truck.

It would help if you also considered getting an umbrella policy between $500 and $700. An umbrella policy includes staff compensation, auto liability, and general liability coverage.

These are the average numbers for semi-truck insurance. However, the cost of your insurance may vary depending on several other factors, such as your semi trucks and your drivers.

On top of that, there are also some other types of insurance that you might consider, including cargo coverage, underinsured motorist coverage, bobtail insurance (for independent truck drivers), non-trucking insurance, trailer interchange policy

Which Type of Semi Truck Insurance is the Most Expensive?

The most expensive type of semi-truck insurance is the primary liability insurance which costs between $5000 and $7000 on average per semi-truck.

This type of insurance is so expensive because it will cover any damage done to the semi-truck while driving.

It’s arguably the most important and most comprehensive type of insurance that you can get for your semi truck, and it’s difficult to overlook it despite its cost.

Which Type of Semi Truck Insurance is the Cheapest?

Physical damage insurance tends to be the cheapest type of insurance as this covers any incidents where your driver is not at fault.

For example, theft, vandalism, or damage caused by severe weather conditions. This is a cheaper type of insurance as it’s rare for this kind of damage to occur.

Most drivers won’t be driving in extreme weather conditions, and they’ll keep their semi trucks in a safe area anyway.

Theft and vandalism are also rare because of increased security features such as GPS tracking devices and cameras.

Is Expensive Semi Truck Insurance Always Better?

In general, more expensive insurance means more comprehensive coverage, which is better for your semi-truck.

However, it entirely depends on each situation. With your semi truck, more expensive insurance may cover things you don’t need.

An example of this will be if your semi truck travels more than 10,000 miles in a specific amount of time.

How can I Lower my Commercial Truck Insurance?

There are a few factors to consider if you want to lower your semi truck insurance. It’s a matter of becoming a more attractive client for insurance companies.

You simply need to tailor your semi-trucks to factors that will be seen as a benefit to them, which ultimately means lower risks.

You can start by investing in semi trucks that are safe and have some technical features that help the driver stay comfortable and alert while driving.

You can also keep your semi-truck’s maintenance up to date and service your semi-truck as regularly as needed.

You also need to ensure that your drivers have a good history in terms of employment and a clean driving record, which will give the insurance company more peace of mind.

The age and level of experience that your drivers have will also help to bring down your insurance costs.

Best Tips to Lower your Semi Truck Insurance:

Lowering your semi truck insurance is important as it will allow you to save some money and stick to your budget, which is crucial over the year.

Luckily there are some ways that you can lower your semi truck insurance, and many truckers often overlook these factors.

You should consider paying your insurance annually rather than monthly. Considering the prices involved, this might prove difficult. However, truckers who pay their insurance in one lump sum can see between a 10 and 20% reduction in their overall insurance premium.

Consider higher deductibles in your insurance policy. It might mean that you need to pay slightly more when making a claim, but it can significantly reduce your insurance premiums, allowing you to save more money in the long run.

Have a clean driving record. Having a clean driving record is probably the best way to reduce your overall insurance premium. If you have not been involved in any incidents, there is less risk involved for the insurance company when it comes to insuring your semi truck.

Who Offers the Best Semi Truck Insurance?

Several different companies offer insurance for semi trucks, so it can be challenging to find the right one for you. We’ve listed our top four down below:

  1. Progressive – best overall semi-truck insurance
  2. NTIIC – best for owner-operators and small fleets of semi-trucks
  3. Sentry – best for semi-truck knowledge and trucking expertise
  4. State Farm – highest customer satisfaction rating