Finding the right commercial truck insurance can be a difficult process. Recently, insurance has become much more difficult to obtain, due to many providers adjusting their terms. In addition, rising premium rates have cause many insurance carriers to stop writing trucking policies altogether, or undertake only lower-risk market segments.  Those providers who still offer insurance to commercial truck drivers have been rapidly raising their rates over the past several years. According to a news release published late last year, annual premiums have doubled from an average of $6,000-$7,000 in the early 2010’s to the current average of $12,000-$14,000. This report draws from data produced by the American Transportation Research Institute, which surveyed thousands of commercial truck carriers and found that insurance account for the largest increases to operation costs. In 2013/2014, insurance costs rose 11% and is 2014/15, they rose 29%.

So, the key takeaway is that when it comes to insurance, the current picture is that there are higher costs and fewer options. This a problem for every carrier company but is more problematic for those new in the industry. LendEDU recently published a guide on their site titled, Best Commercial Truck Insurance Companies that explains three of the most significant problems new truck drivers will face when searching for truck insurance.

Eligibility

Trucking companies must file proof with the state and federal government that they have enough coverage on their trucks to cover both the value of the truck itself and the cargo, as well as protect against any liability claims, such as an accident that was the trucker’s fault. 

Making that a bit difficult, especially for new drivers, is the “two-year rule,” an unofficial policy that many commercial trucking insurers have against insuring drivers with less than two years of commercial driving experience. 

Cost

Like consumer auto insurance, commercial truck insurance has no set price. Each policy cost is dependent on individual risk factors such as any traffic tickets, convictions for driving while under the influence, past accidents, operating radius, and what your typical cargo is.

Car haulers, for instance, need more coverage than the minimum. Several companies offer commercial truck insurance for all types of cargo.

Providers

Within the united states there are hundreds of insurance providers, and for many new to the industry, it can seem like a gamble when it comes to picking out the correct provider. The best place to start is to look at the top commercial truck insurance providers and compare their costs and terms to find an option that is going to best suit your needs:

• Progressive Insurance – Progressive bills itself as the #1 commercial trucking insurer in America and they specialize in owner-operators, motor carriers, and private carriers. The company offers general liability, non-trucking liability, rental reimbursement, trailer interchange, and cargo insurance, including state and federal filings so that you can prove that you are covered. They also have a robust heavy truck claims department. For features, Progressive is hard to beat. All claims are processed in-house by their own adjusters and they have a wide variety of coverages.

• State Farm Insurance – Aside from their consumer, home, and life policies, State Farm also has commercial vehicle coverage. Their policies include bodily injury, liability, and more – but they don’t cover your cargo, which would be a deal-breaker for most commercial trucking companies. Their commercial coverage mostly offers the same protections you would get with a consumer auto policy without many of the additional things that Progressive has specifically for large trucks.

• EIB Direct – EIB Direct, or Evolution Insurance Brokers, is a lesser-known company that specializes in trucking insurance. EIB Direct has coverage for truck liability, physical damage, hired and non-hired vehicles, motor truck cargo, and even non-owned trailer liability for companies that rent or lease trailers. Coverage exceeds the federal limits of $750,000, and their strength is in their ability to do specialized policies for “difficult risk,” or those who may not be able to get insurance elsewhere due to past legal issues, hazardous cargo, or other situations that make insurance procurement difficult. The flip side of that coverage availability, however, is the price. EIB can be more expensive than other insurers. For those who can’t get a standard commercial trucking policy with a more traditional insurance company, however, EIB should be considered as a viable option. 

• National Independent Trucker’s Insurance Company – The NITIC offers a wide variety of coverages and their specialty is owner-operator trucking companies and small commercial fleets. NITIC’s coverages range from $35,000 all the way up to $5 million, with the cost for those coverages dependent on risk, region, and other factors. They also offer short-term policies to cover a truck that’s just been purchased or is being moved for repairs and just needs coverage for 24 to 72 hours. Their depth and breadth of policies span the entire spectrum of what a commercial hauling operation may need, and their coverage is comparatively affordable as well. In addition, they specialize in smaller operations that need coverage but don’t have a lot of operating capital to put toward insurance.

• Owner Operators Independent Driver’s Association – The Owner-Operator Independent Drivers Association offers several policies and coverage options for small business truckers. Whether you’re an owner-operator with authority or a lease, OOIDA has a full range of options. All underwriting is in-house with fast turnaround and competitive rates. Since its total focus is commercial truck insurance, OOIDA has some of the best and most specialized policies on the market.

• Great West Casualty – Great West Casualty Company specializes in truck insurance products and services. They are one of the most well-known providers for commercial truck insurance, and have a great reputation for their service, knowledge, and expertise. In addition, claims are where GWC really shines. They have a fast and efficient claims process with adjusters who work to ensure the settlement is enough, fair, and timely.

Finding the right commercial truck insurance can be tough, and it’s necessary to legally operate a truck. Before choosing any truck insurance policy, make sure to look at customer ratings, offerings, and any price quotes. Whatever you decide to go with, keep in mind that a “great deal” also might come with the expense of not having complete coverage – make sure you understand your policy completely and what the exclusions are. It might pay off to go with a more expensive policy with less exclusions in the end – these can protect you more when faced with claims of significant value.