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Written byAnna Baluch
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Anna Baluch is a Cleveland-based personal finance and insurance expert who’s written for Compare.com since 2023. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions.
Her work can be seen across the web in several notable publications, including Freedom Debt Relief, Credit Karma, RateGenius, and The Balance.
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Edited byKatie Powers
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Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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In This Article
Semitruck and trailer insurance is a form of commercial car insurance that covers large trucks and trailers used for business purposes. It protects your business financially from damage, accidents, theft, vandalism, and liability claims.
If you’re a commercial truck driver, fleet owner, or owner-operator, this coverage also helps you meet insurance compliance requirements and protect your investment and livelihood.
Below, we’ll dive deeper into what a semitruck and trailer insurance policy includes, what it costs, and who needs it. Here’s what you should know to find the best commercial truck insurance company for your business.
Key Takeaways
All commercial vehicle drivers must have a minimum amount of liability coverage to meet state requirements. Many truckers also add extra coverages like gap insurance, rental reimbursement, and bobtail coverage.
The cost of semitruck and trailer policies varies based on factors like freight type, vehicle value, and driving history. Major and specialty insurers sell this coverage.
Semitrucks have two main parts. The tractor is the front portion, which houses the engine and the cab, and the trailer is the detachable back portion for cargo.
Semitruck and Trailer Insurance Explained
Semitruck and trailer insurance is a type of commercial auto insurance that protects semitrucks, their operators, and the businesses that own them. If a semitruck faces damage or theft, this coverage kicks in and covers the related expenses to reduce downtime.
Standard commercial car insurance policies typically include liability, collision, comprehensive, and uninsured/underinsured motorist coverage (UM/UIM), but you may need more for your truck. State law typically requires liability coverage, and some shippers and freight brokers may require some form of physical damage coverage to validate contracts.
What does a semitruck and trailer insurance policy include?
Here are the main coverage components that robust semitruck and trailer insurance should cover for your semitruck or fleet:
Bodily injury liability
Property damage liability
Collision
Comprehensive
Cargo insurance
UM/UIM
Trailer interchange coverage
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Businesses That Need Semitruck and Trailer Insurance
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If you operate a commercial truck or tractor trailer, having the right insurance policy is essential. It can protect your business and assets and help you stay compliant with federal and state trucking regulations.
These types of drivers and businesses should have semitruck and trailer insurance:
Owner-operators: If you own and drive a semitruck, it’s your responsibility to get coverage for your vehicle and cargo.
Leased operators: Even if you work as a contractor for another business, you may need to invest in your own physical damage or non-trucking liability coverage. Specifics will depend on the terms of the lease.
Fleet owners: Businesses with multiple drivers and vehicles — including dump trucks, box trucks, and tow trucks — should purchase insurance to protect business assets and comply with federal and state requirements.[1]
If you’re a long-haul driver who frequently crosses state lines, a regional hauler, or if you haul hazardous materials, you might benefit from specialized coverage and higher liability limits.
Semitruck and Trailer Insurance Costs
Rates for semitruck and trailer insurance vary widely. Your premium will depend on several factors, including your driving history, coverage levels, the type of freight you haul, and the value of your vehicle.
If you operate across state lines or haul hazardous materials, your small business will likely pay more for semitruck and trailer coverage. To secure the best deal for your unique needs, shop around and compare quotes from multiple insurance companies.
What Semitruck and Trailer Insurance Covers
Semitruck and trailer insurance typically covers vehicles, cargo, and drivers. It can protect against expensive liability claims, property damage, and repair costs.
Here’s an overview of key coverages:
Bodily injury liability: Bodily injury liability insurance can reimburse you for medical bills and legal fees if your rig injures another driver in a collision.
Property damage liability: Property damage liability insurance covers damage to someone else’s vehicles, buildings, or other structures if you cause damage.
Physical damage coverage: Physical damage insurance, in the form of collision and comprehensive coverage, can help cover the cost of repairing or replacing your truck or trailer.
Cargo insurance: Motor truck cargo coverage can reimburse you for damage to or loss of goods in transit. Most contracts require it, as it’s particularly vital for expensive freight.
Trailer interchange coverage: Trailer interchange insurance protects non-owned trailers that operate under a trailer interchange agreement.
What semitruck and trailer insurance doesn’t cover
While semitruck and trailer coverage protects against a variety of situations and risks, it doesn’t cover everything. Here are several of the most common commercial auto exclusions:
Routine maintenance
As an owner-operator or fleet owner, you’re responsible for oil changes, tire rotations, and regular maintenance.
Wear and tear
Semitruck and trailer policies typically don’t cover deterioration or mechanical breakdown, which can occur with regular use.
Personal vehicle use
This type of commercial truck insurance doesn’t usually cover non-business driving unless you invest in non-trucking liability coverage.
Use by unauthorized drivers
Your commercial truck insurance policy won’t apply if someone you didn’t list on your policy drives your vehicle.
Overloading
You might face claim denials if your cargo exceeds the legal weight limits.
Unapproved modifications
Installing video cameras and other devices may void your semitruck and trailer insurance plan.
Since a denied claim can cost you tens or even hundreds of thousands of dollars out of pocket, it’s essential to understand your insurance policy’s exclusions.
Optional coverages for semitrucks
Add-ons can address the unique risks of the trucking industry and provide you with additional peace of mind. Here are a few common optional insurance add-ons worth considering.
Gap insurance: If someone steals your truck or you total it, a gap insurance policy can cover the difference between what you owe on your loan and its actual value.
Rental reimbursement: Rental car insurance may reimburse you for a rental truck if a covered loss makes your vehicle inoperable.
Refrigerator breakdown: This type of insurance may reimburse you for repair costs if your refrigerated unit fails and you rely on it for temperature-sensitive cargo.
Bobtail insurance: Bobtail insurance provides liability protection for when you drive your rig without a trailer.
Hazmat endorsement: Hazmat insurance can cover the risks of hauling hazardous materials.
Factors That Affect the Cost of Semitruck and Trailer Insurance
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Several factors affect the cost of semitruck and trailer insurance. Knowing what insurers consider, you may find it easier to lower your rates over time.
Here’s a look at the most common factors truck insurers consider when determining insurance costs:
Driving record: Truck insurance companies typically reserve the most affordable premiums for drivers with clean records.
Type of freight: Hauling high-value or hazardous cargo typically results in higher rates due to the higher risk involved.
Vehicle value: If you own an expensive truck and trailer, you’ll typically pay more for coverage than a driver or business with a cheaper commercial vehicle.
Operating radius: Trucks that spend more time on the road and operate across a wider area pose more risk to insurers, which in turn often results in higher insurance costs.
Claims history: A history of regular or costly insurance claims may increase truck insurance premiums.[2]
Where to Get Semitruck and Trailer Insurance
Semitruck and trailer insurance is available through major insurance companies.[3] Insurers like GEICO and Progressive, for example, sell standard commercial auto insurance plans with add-ons for single commercial drivers and fleet operations.
That said, if you operate in high-risk areas or haul unusual loads, it might make sense to buy truck insurance coverage from a specialized insurance company.[4] Sentry Insurance, Schneider, and Great West Casualty Company are solid specialty insurers to consider.
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How to save on semitruck and trailer insurance
You can follow these tips to save money and find a great deal on a semitruck and trailer insurance policy.
Drive responsibly
Truck insurance companies offer lower rates to drivers without speeding tickets, at-fault accidents, and other traffic violations.
Pay your premium in full
Making a full premium payment, rather than monthly installments, can earn you a discount from some insurers.
Opt for a higher deductible
Setting a higher deductible can reduce your rate. That said, make sure your trucking company has sufficient funds to cover the higher out-of-pocket costs in the event of damage.
Bundle policies
If you have general liability insurance or workers’ compensation, you may be able to combine it with your semitruck and trailer insurance to save on coverage. Many insurers may also have bundled business insurance packages to consider.
Explore discounts
Some insurance companies offer discounts for setting up autopay, safety programs, and other benefits.
Monitor your driving behavior
You can potentially use electronic logging devices (ELDs) to track habits and demonstrate you’re a safe driver to your insurer.
Shop around
Get truck insurance quotes from multiple insurers to zero in on the ideal insurance policy for your trucking business.[5]
Semitruck and Trailer Insurance FAQs
The following information can help answer your remaining questions about semitruck and trailer insurance, whether you’re a business owner or commercial driver.
Do you need commercial truck insurance to perform side jobs, such as hauling?
Yes. Even if you’re hauling goods part time, you need a commercial truck insurance policy to remain compliant and protect your finances.
What kind of insurance do you need for a semitruck?
You must buy auto liability coverage, at the very least. But depending on your situation and trucking operations, you should also consider buying collision, comprehensive, cargo, and uninsured motorist protection. Other add-on commercial truck insurance coverages are also available.
Why is semitruck insurance so expensive?
Semitruck coverage can be expensive due to the size of the vehicles and the cargo they transport. Insurers may also charge higher premiums because commercial drivers are spending long hours behind the wheel.
Sources
- Insurance Information Institiute. "Insuring Your Business: Small Business Owners' Guide to Insurance."
- National Association of Insurance Commissioners. "Auto Insurance."
- GEICO. "Commercial Truck Insurance."
- Sentry Insurance. "Trucking insurance."
- Insurance Information Institute. "How to save money on car insuranc."
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Anna BaluchInsurance Writer
Anna Baluch is a Cleveland-based personal finance and insurance expert who’s written for Compare.com since 2023. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions.
Her work can be seen across the web in several notable publications, including Freedom Debt Relief, Credit Karma, RateGenius, and The Balance.
Licensed auto and home insurance agent
4+ years of experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
