When you are in the trucking business you understand that your rig is not just a vehicle, but it is your livelihood. It is your business driving force. But what when that engine stalls to a screeching halt due to an accident? Truck insurance is where it comes in and one of the most crucial decisions you will ever make is to select the right partner to insure your business.
To give some perspective to the numbers, let us look at some numbers. The American trucking industry is an enormous 940 billion dollar juggernaut, transporting more than 72 percent of all freight in the United States. There are almost 4 million heavy-duty trucks on the road and accidents, unfortunately, are a reality. One accident that involves injury on average costs nearly 200,000 dollars.
When it is a fatality, that amount can sadly escalate beyond the $4.7 million mark. It is this reason that makes your insurance policy more than a piece of paper that the law demands. It is a financial protection, a security net and the best friend of your business. Selecting the best top trucking insurance companies does not mean finding the lowest price tag, but rather finding a partner that is knowledgeable about the specific risks that face the trucking industry. This guide will guide you through that decision, and everything you want to know is explained in simple, easy-to-understand terms.
An Overview of Trucking Insurance
You hear the term commercial truck insurance being used a lot. What does it mean? What is under the hood? Let us take a look at the engine.
What is Commercial Truck Insurance?
Commercial truck insurance can be considered as a specialized form of auto insurance that is targeted at people who drive trucks as their main occupation. Your regular personal auto policy will not protect you when you are transporting freight. Why? Since the risks are totally different You are operating a far bigger, heavier vehicle and at times over long periods of time and across state lines.
You may be transporting valuable–or even dangerous–freight The risk of a serious accident that would cause serious damage is much more. Commercial truck insurance is a package of various coverages designed to cover such heavy risks. It is a legal obligation of the Federal Motor Carrier Safety Administration (FMCSA) and the state laws, yet more importantly, it is the cornerstone of a secure and stable trucking business.
Types of Trucking Insurance Policies
Trucking insurance is not a blanket affair. It is rather a toolbox, and you select the particular tools (coverages) that you require in your operation. These are some of the most typical ones:
- Primary Auto Liability: This is the big one and it is the law. This would cover the expenses of bodily injury to other individuals and property damage of the property of other individuals in the event that you or one of your drivers is at fault in an accident. The FMCSA mandates at least 750,000 in liability coverage, however the majority of brokers and shippers will require you to have at least 1,000,000.
- Physical Damage Coverage: This saves your personal truck and trailer. It is normally divided into two:
- Collision Insurance: This insurance is used to cover the cost of repairing or replacing your truck in case of collision with another vehicle or an object.
- Full Coverage: Insures against non-collision damage such as theft, vandalism, fire, hail or hitting an animal.
- Motor Truck Cargo Insurance: This is important. It guards the cargo you are transporting. In case the cargo you are shipping is damaged or lost in a fire, collision, or other covered event, this policy assists in paying to replace it. The coverage you require is dependent on what you are hauling.
- General Liability Insurance: This is the insurance that covers any accidents that occur outside the road yet they are linked to your business activities. Consider a slip-and-fall injury in your loading dock or an error in your delivery that results in property damage.
- Non-Trucking Liability (Bobtail Insurance): As an owner-operator leased to a motor carrier, their primary liability insurance most likely only covers you when you are driving on their dispatch. Bobtail insurance covers you when you are not on the road on business (e.g. driving home after you have delivered a load).
- Trailer Interchange Insurance: In the event that you are hauling a trailer that you do not own (a common practice), this insurance covers physical damage to that trailer that is in your possession under a trailer interchange agreement.
Why Trucking Insurance is Crucial for Trucking Companies in the US
To be frank, it is a case of borrowed time when it comes to your trucking business without the right insurance. This is why it is a non-negotiable:
- It is the Law: To begin with, federal and state governments require a certain amount of insurance coverage. Operating without it may result in huge fines, revocation of your operating authority and even prosecution. It is just impossible to work legally without it.
- Financial Survival: As we have learned in the stats above, one major accident can generate expenses that would put most businesses out of business in a single night. Between you and bankruptcy there is insurance. It takes care of medical expenses, legal expenses, and repair expenses which cannot be paid out of the pocket.
- Customer and Broker Requirements: The vast majority of shippers and freight brokers refuse to deal with a trucking company that does not have proper insurance which generally includes at least 1,000,000 in auto liability and 100,000 in cargo coverage. The good-paying loads are your ticket with your insurance certificate.
- Peace of Mind: Be assured that you are covered and you can do what you are best at which is running your business. It eliminates the nagging worry of what could go wrong and gives you, your drivers and your family a safety net. It is an investment in the long-term health of your business and your health.
List of top trucking insurance companies
The following is a glance table of some of the best players in the truck insurance arena.
| Company Name | Year Founded | Headquarter City | Employees | Best For | Average Pricing | Ratings (AM Best) |
| Progressive | 1937 | Mayfield Village, OH | 61,000+ | All-around coverage for fleets & owner-operators | Competitive | A+ (Superior) |
| The Hartford | 1810 | Hartford, CT | 18,000+ | Small to mid-sized fleets | Moderate to Premium | A+ (Superior) |
| Great West Casualty Co. | 1956 | South Sioux City, NE | 1,000+ | Trucking industry specialists | Competitive | A+ (Superior) |
| OOIDA | 1973 | Grain Valley, MO | 300+ | Owner-operators & independent drivers | Affordable for members | A+ (Superior) |
| Sentry | 1904 | Stevens Point, WI | 4,000+ | Fleets with strong safety records | Competitive | A+ (Superior) |
| Nationwide | 1926 | Columbus, OH | 26,000+ | Businesses seeking bundled policies | Moderate | A+ (Superior) |
| CoverWallet | 2015 | New York, NY | 300+ | Easy online comparison shopping | Varies by provider | Varies |
| Liberty Mutual | 1912 | Boston, MA | 50,000+ | Mid-to-large fleets needing custom solutions | Moderate to Premium | A (Excellent) |
| Canal Insurance | 1939 | Greenville, SC | 200+ | High-risk or specialized trucking operations | Premium | A- (Excellent) |
| Northland Insurance | 1948 | St. Paul, MN | 500+ | Long-haul trucking and public auto | Competitive | A+ (Superior) |
Top 10 Commercial top trucking insurance companies
Dive deeper and let’s look at what drives these top companies. Getting the right fit is not just about the name, it is about their focus, service, and how they conduct business when you really need them.
1. Progressive Commercial
- Year Founded: 1937
- Headquarter City: Mayfield Village, Ohio
- Employees: 61,000+
- Best For: Comprehensive protection of new ventures, owner-operators and small fleets.
Progressive is now a household name and there is a good reason behind this as they are one of the largest commercial auto insurers in the US. They have an extensive selection of coverage options that can be customized to nearly any kind of trucking operation, including an owner-operator to a growing fleet. What is so attractive to many of them is their versatility and affordability, especially to the new entrants in the industry.
Their state and federal filings are fast and that is a great convenience in getting your authority active and staying compliant. It is one of the best top trucking insurance companies. They offer online tools and a mobile app to help you manage your policy, print an insurance card, or initiate a claim easily and conveniently.
Pros:
- It is great with new trucking authorities.
- Quotes and policy management is fast and easy online.
- Broad discounts offered.
- Good financial strength (A+ rated).
Cons:
- Customer service may not be as personal in some cases compared to smaller companies.
- Truckers who have poor driving records may pay higher premiums.
Standout Feature: Smart Haul Program: A usage-based insurance program that provides substantial discounts (average of 18%) on safe driving, which is monitored through an Electronic Logging Device (ELD).
Website: www.progressivecommercial.com
2. The Hartford
- Year Founded: 1810
- Headquarter City: Hartford, Connecticut
- Employees: 18,000+
- Best For: Fleets of all sizes who want a full service fleet management solution.
Hartford is a giant in the insurance industry with more than 200 years of experience, stability and broad business solutions. They apply this extensive experience in their commercial trucking insurance and specialise in assisting small to mid-sized fleets to manage their risks. They also cover more than the standard policies with specialized options to meet the specific type of cargo, and the operational requirements.
It is one of the best top trucking insurance companies. The real difference of The Hartford is that they include risk management and loss control services with their policies. They offer the customers access to fleet safety programs, telematics consulting, and driver training services to facilitate the prevention of accidents before they occur.
Pros:
- Exceptional risk management and fleet safety solutions.
- Good reputation on claims handling.
- Policies which are highly customizable to established businesses.
- In depth industry experience and financial strength.
Cons:
- It may not be the most competitive option to new ventures or single owner-operators.
- Premiums are on the upper side.
Standout Feature: FleetAhead Management Program: A free program that offers powerful tools and expert guidance to enhance fleet safety, driver behavior and improve operational efficiencies.
Website: www.thehartford.com
3. Great West Casualty Company
- Year Founded: 1956
- Headquarter City: South Sioux City, Nebraska
- Employees: 1,000+
- Best For: Truckers that desire an insurance company that exclusively serves the trucking industry.
Great West is not a general insurance company that just happens to sell truck insurance, they are a trucking insurance company, end of story. It is their single-mindedness that is their biggest asset and makes them a favorite among serious trucking professionals. Their business model is constructed entirely around what truckers experience day to day, the obstacles they encounter and the dangers they face.
All of their services, including underwriting, claims and safety services are provided by people who are experts in trucking and breathe it. It is known that they have excellent, 24/7 claims services that are aimed at putting drivers and their equipment back to work as fast as possible. It is one of the best top trucking insurance companies. They are selective in nature because they would like to work with established operations with a proven commitment to safety.
Pros:
- Specialized in the trucking field.
- Unrivaled experience in trucking risks and regulations.
- Exceptional, industry-leading claims service.
- Useful safety and loss prevention information.
Cons:
- It can be hard to find a policy with new authorities or high-risk operations.
- They specialize in their services and these services are usually expensive.
Standout Feature: Trucking Specialization: The company has a 100 percent focus and dedication to the trucking industry in its entire infrastructure including agents and adjusters.
Website: www.gwcc.com
4. OOIDA (Owner-Operator Independent Drivers Association)
- Year Founded: 1973
- Headquarter City: Grain Valley, Missouri
- Employees: 300+
- Best For: Independent contractor drivers and owner-operators.
OOIDA is not just an insurance company, it is an association and advocacy group founded by truckers and truckers. Their vision is to battle on behalf of the rights and interests of professional truck drivers and their insurance services are a central part of this process. They use the purchasing power of their 150,000+ members to offer high quality and affordable insurance products. It is one of the best top trucking insurance companies.
They offer insurance plans that are specifically tailored to the unique requirements of an owner-operator, which may vary widely as compared to those of a large fleet. They are great in primary liability, physical damage, and the non-trucking liability (bobtail) which can be a tricky one. Among their outstanding advantages is personal service; when you call OOIDA, you are talking to somebody who knows your business.
Pros:
- Owner-operators specifically designed and by owner-operators.
- Competitive pricing to the members.
- Excellent, personal customer service.
- Membership provides advocacy and other useful benefits.
Cons:
- You should be an OOIDA member to get their insurance.
- Not appropriate to medium and large motor carriers (fleets).
Standout Feature: Trucker-Centric Advocacy: They are the only insurance provider that is also a major lobbying and advocacy group, actively trying to make the lives and careers of truckers easier.
Website: www.ooida.com
5. Sentry Insurance
- Year Founded: 1904
- Headquarter City: Stevens Point, Wisconsin
- Employees: 4,000+
- Best For: Mid sized and larger fleets with well developed safety programs and a good loss history.
Sentry is an old and well-established insurance company with a long history of mutual company structure and customer relations. They have established a large niche in the trucking industry with a specialty in insuring established, safety conscious fleets. They are consultative in their approach, and they are very much involved with their clients to get to know their operations and risk exposures.
A brand-new venture is not usually the right place to go to Sentry because they pay a lot of attention to the safety record and the loss history of a company during underwriting. Nevertheless, Sentry provides very competitive rates and outstanding service to fleets that can satisfy their standards. They offer a team of safety experts who can assist you to streamline your safety practices, train your staff and lower your overall risk profile.
Pros:
- Stable mutual firm.
- Great rates on fleets that have good safety records.
- Committed safety and loss control services.
- Great emphasis on long-term client relationships.
Cons:
- Tight underwriting standards; cannot be used with new fleets or high-risk fleets.
- Less concerned with owner-operators.
Standout Feature: Focus on Loss History: Sentry places a great deal of importance on a history of safety and rewarding businesses with a history of safety with some of the best premiums available on low-risk fleets.
Website: www.sentry.com
6. Nationwide
- Year Founded: 1926
- Headquarter City: Columbus, Ohio
- Employees: 26,000+
- Best For: Trucking companies that need to bundle their insurance with their other business policies.
Another significant insurance market player is Nationwide, which provides a great number of products to satisfy both personal and business needs. Their slogan, Nationwide is on your side, is their dedication to customer service and the offering of the full range of protection. In the case of trucking companies, they have a good package of commercial auto coverages which can be tailored to meet various hauling operations.
They are especially a good option when businesses are interested in streamlining their insurance by purchasing various policies with the same provider. It is not uncommon to find your commercial truck, general liability, workers compensation and even property insurance under the Nationwide umbrella.
Pros:
- Great bundling choices and multi-policy discounts.
- Good financial standing and brand awareness.
- It is good when businesses require a variety of coverage types.
- Easy to use online portal and tools.
Cons:
- Not so trucking-oriented as specialized carriers.
- Not necessarily the most competitive on standalone trucking policies.
Standout Feature:Vanishing Deductible: Optional feature that rewards safe driving by decreasing your deductible by $100 per year of claims free operation.
Website: www.nationwide.com
7. CoverWallet
- Year Founded: 2015
- Headquarter City: New York, New York
- Employees: 300+
- Best For: Technology-savvy truckers who desire to compare quotes of several insurers in a short period of time online.
CoverWallet is slightly different to the rest on this list; they are a premier online insurance broker, not a direct insurer. They have transformed the process of small business shopping insurance by building an easy, user-friendly online store. Rather than dialing several agents, you could fill in a single online application and get quotes of several of the highest-rated insurance companies. It is one of the best top trucking insurance companies.
This makes the process of locating the appropriate coverage at the appropriate price so very efficient and transparent. Their platform is also user-friendly in that they convert complicated insurance language into plain English. CoverWallet is a must-have tool that allows truckers to find the best deal, as far as speed, convenience and comparison are concerned.
Standout Feature: Online Quote Comparison Platform: Their technology enables you to view multiple competitive quotes side-by-side, giving you more information with which to make a faster, more informed decision.
Pros:
- Gives you the opportunity to compare quotes across a range of the best insurers in a single location.
- Easy, quick and fully online application.
- A great online system to control policies and certificates.
- Awesome with tech-savvy business owners.
Cons:
- The type of service may differ according to the final insurance company selected.
- Not as personal, on-the-ground relationship as a local agent.
Website: www.coverwallet.com
8. Liberty Mutual
- Year Founded: 1912
- Headquarter City: Boston, Massachusetts
- Employees: 50,000+
- Best For: Mid-to-large fleets seeking tailored risk solutions and worldwide capabilities.
Liberty Mutual is one of the largest insurance giants in the world that has a huge market share in the commercial and specialty market. They specialize in mid-sized and large fleets, and provide advanced risk management services to the trucking industry. They look at the whole picture of a client business, and they strive to learn their specific issues, such as driver safety or risk in the supply chain.
Their risk control team is one of the finest in the industry and they offer data-driven insights to minimize the number and seriousness of accidents. It is one of the best top trucking insurance companies. Although they are not oriented to the single owner-operator, their large fleet capacities are global. An expanding company that is expanding its operations can find the skills and ability to expand with them in Liberty Mutual.
Pros:
- Experience in the development of customized solutions to large and complex fleets.
- Best risk management and safety services.
- International capacities and financial support.
- Extensive experience in dealing with large and complicated claims.
Cons:
- It is not meant to be used by individual owner-operators or small fleets.
- The underwriting and application may be more rigorous.
Standout Feature: Data-Based Risk Management Services: They use sophisticated analytics and telematics data to offer highly precise and useful safety suggestions to their customers.
Website: business.libertymutual.com
9. Canal Insurance Company
- Year Founded: 1939
- Headquarter City: Greenville, South Carolina
- Employees: 200+
- Best For: Niche or difficult-to-place trucking operations such as new ventures and specialized hauling.
Canal Insurance has a long history of more than 80 years serving the trucking insurance community and a reputation of accepting risks that others would not. They are a specialist in the purest sense, specializing in commercial trucking and knowing its most problematic areas.
This qualifies them to be a good choice in those operations that do not fit in the ordinary box, like long-haul trucking, log truckers, or those that haul specialized equipment. Canal has also been characterized by being more receptive to collaborating with new trucking ventures as compared to most of their competitors. They know that nobody can start at the top and they have packages to assist new authorities to get adequately covered and on the road.
Pros:
- Able and willing to insure high-risk, specialty and new trucking operations.
- In-depth knowledge of niche trucking.
- Experienced and responsive claims handling.
- Stable, long-term existence in the field of trucking.
Cons:
- The premiums may be higher as their clients are of higher risk.
- The policies are only sold by a network of independent agents.
Standout Feature:Specialty Risk Appetite: They are exceptional in offering insurance services to the trucking segments that are not adequately covered by the mainstream insurance companies.
Website: www.canalinsurance.com
10. Northland Insurance Company
- Year Founded: 1948
- Headquarter City: St. Paul, Minnesota
- Employees: 500+
- Best For: Trucking and transportation companies that have long-haul transportation and need long-term and stable coverage.
Another very well reputed name is Northland which has been committed to the transportation business over the past 30 years. They are a subsidiary of the insurance giant Travelers, they have the specialty insurer focus and expertise, together with the financial strength of a leading carrier. This provides their policy holders with the best of both worlds, personalized service and rock solid stability.
Northland pays much attention to long-haul trucking and the underwriters are well-versed in assessing the risks involved in cross-country operations. They have superb risk control services that provide useful information and guidelines to enable their clients to work more safely and efficiently. One of the strengths of Northland is its claims service, which has a staff of transportation experts in house to handle all the facets of a claim.
Pros:
- Supported by the huge financial resources of Travelers.
- In-depth knowledge of long-haul trucking.
- High attention to risk management and claims control.
- Consistent and steady long-term insurance partner.
Cons:
- Possibly not as much flexibility in very high-risk operations as a company such as Canal.
- May be viewed as more traditional or conservative in its underwriting at times.
Standout Feature:Travelers Backing: The blend of Northland specialized transportation expertise with the financial strength and stability of one of the largest insurers in the nation.
Website: www.northlandins.com
Tips to Save on Commercial Truck Insurance
The amount you pay in insurance is not fixed. A number of proactive measures can be undertaken to reduce your expenses:
- Employ Safe Drivers: Your drivers record is one of the largest factors in your premium. Have a stringent hiring process and use Motor Vehicle Records (MVRs) of your drivers on a regular basis.
- Safety Program: A formal safety program, frequent training meetings, and the utilization of telematics can show your commitment to safety and can result in substantial discounts.
- Raise Your Deductible: The higher your deductible (the amount you pay out-of-pocket on a claim) the lower your premium. The only thing is to make sure that you have a sufficient amount of cash available so that in case of an accident you can pay the higher amount.
- Pay in Full: Most companies will give a discount on paying your total annual premium all at once as opposed to paying a monthly premium.
- Combine Your Policies: As stated above with companies such as Nationwide, you can frequently save money by having all your business insurance policies with a single provider.
- Review Your Policy on an Annual Basis: Your business evolves, and so may your insurance requirements. Examine your policy annually with your agent to ensure you are not overpaying on coverage that you do not require and that you are taking full advantage of all discounts that you qualify to receive.
Conclusion
The decision to take top trucking insurance companies will have a long term effect on the health and success of your business. It is much more than a compliance box to check. It is about establishing a relationship with a company that supports you, knows your world of trucking and logistics companies, and is willing to take action when you need it the most.
With knowledge of the types of coverages, what to seek in a company, and taking action to manage your risk, you can locate a policy that is both protective and cost effective. Take your time, research, ask questions and select the partner that will assist you in keeping your wheels turning safely and profitably in the years to come.
FAQs
What is the price of commercial truck insurance?
The price is very broad depending on various factors such as your location, driving record, the type of cargo and coverage limits. It can cost a new authority between 12,000 and 20,000+ a year, but an experienced driver with a clean record will cost a lot less.
What is MCS-90 endorsement?
The MCS-90 is an add-on that ensures that the insurance firm will compensate to the required federal minimums on claims of public liability even though your policy would not normally cover it.
Do I have to provide my own insurance when I am leased to a motor carrier?
Usually, yes. The main liability policy that the motor carrier has normally covers you only when you are under their dispatch. You will probably require Non-Trucking Liability (Bobtail) coverage in personal use.
What is the procedure of obtaining a Certificate of Insurance (COI)?
After your policy is in force, you may obtain a COI by contacting your insurance agent or, with many new insurers, by downloading it off their web site or mobile app.
