The Complete Guide to Commercial Truck and Trailer Insurance in 2025

Commercial truck and trailer insurance protects businesses that use large vehicles from financial losses due to accidents or theft.^[1] Without it, your business would be on the hook for costly expenses following an accident, damage, or injury.

Let’s look at how trucking insurance coverage works and how to choose the right policy for your business.

Commercial Truck and Trailer Insurance Explained

Commercial truck and trailer insurance is a business policy that includes liability, physical damage, and cargo coverage. In most cases, businesses that operate large vehicles legally need this type of insurance.

The Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability insurance for trucks operating across state lines, though the amount varies depending on the type of freight.^[2]

Trucking companies must also stay compliant with commercial auto liability insurance filings, which verify that your business meets federal and state insurance requirements before operating on public roads.

Without this commercial auto coverage, your business could face fines and high out-of-pocket expenses. Buying commercial truck and trailer interchange insurance ensures compliance with state and federal laws.

Companies That Need Commercial Truck Insurance

Any business that owns or operates large commercial vehicles needs commercial truck insurance. This includes trucking companies, independent owner-operators, delivery and logistics services, and construction or landscaping businesses that transport heavy equipment.

Industries like freight hauling, agriculture, towing, and moving services also rely on this coverage to stay protected on the road.

Even small businesses that occasionally use large vehicles for deliveries or client services need adequate insurance to meet federal and state requirements. Businesses hauling hazardous goods should also ensure compliance with hazardous material signs and labeling requirements.

Types of vehicles commercial truck insurance covers

Commercial truck and tractor trailer insurance can cover a wide range of vehicles, including the following:

• Semitrucks

• Flatbed trucks

• Dump trucks

• Box trucks

• Garbage trucks

• Cement mixers

• Food trucks

• Cargo vans

These insurance policies typically protect both the truck and trailer, depending on your policy’s structure. Coverage often includes liability, collision, and cargo protection. Specialized vehicles, such as flatbeds, may require flatbed trailer insurance to cover unique risks, including exposed cargo during transit.

Some insurers may exclude specialized or permanently attached equipment, so you should always review your policy to ensure you have coverage for your specific vehicles and attachments.

Commercial Truck and Trailer Insurance Coverages

Commercial business insurance typically includes the following coverages:

• 

  Liability coverage

  Liability coverage pays for bodily injury, medical expenses, and property damage you cause to other drivers in an accident. This coverage is a legal requirement for most commercial vehicles. The FMCSA sets the regulations for interstate drivers, while the state determines the limits for intrastate truckers.

• 

  Collision coverage

  Collision coverage helps repair or replace your truck or trailer after accident-related damage, regardless of which driver is at fault.

• 

  Comprehensive coverage

  Comprehensive coverage protects against non-collision incidents, such as theft, vandalism, fire, and weather-related damage.^[3]

• 

  Cargo insurance

  Cargo insurance covers goods that are damaged or lost in transit.

You can also customize your trucking business’s insurance with additional coverages to account for any other risk exposure you face. For example, you can add on mechanical breakdown coverage, which covers the cost of repairing or replacing certain parts on your truck.

What truck and trailer insurance doesn’t cover

While commercial truck and trailer insurance provides broad protection, it doesn’t cover everything. Most policies have exclusions for normal wear and tear, mechanical breakdowns, and intentional damage.

Coverage doesn’t usually extend to injuries to employees, which you’d need to handle under a separate workers’ compensation policy. To fully protect your business, consider adding other types of insurance, like workers’ compensation or vehicle breakdown coverage.

Commercial Truck and Trailer Insurance Costs

How much you pay for commercial truck and trailer insurance depends on a variety of factors, such as your vehicle type, fleet size, cargo, and more.

That said, motor carrier businesses pay between $10,000 and $30,000 per year, on average, for commercial car insurance. If you’re an owner-operator driving under someone else’s authority, you may pay an average of between $3,000 and $5,000 annually.^[1]

You can pay more or less than these averages depending on the following factors:

• Type of truck or trailer: The size, weight, and age of your truck all affect your insurance costs. For instance, heavier trucks tend to come with higher insurance costs since they can cause more damage in an accident.

• Policy limits and deductibles: Higher liability limits and specialized endorsements will lead to higher premiums, while choosing a higher deductible can lower them.

• Time in business: Newer companies to the trucking industry will typically pay higher premiums than established businesses. But even well-established companies can face higher rates if they’re using new commercial truck drivers.

• Driving history: Insurers often review a company’s loss history during underwriting, and businesses with a low claims history generally qualify for the best rates.

• Location: Your insurance rates will also vary depending on your location and your operating radius.

Businesses can lower their commercial auto insurance costs by hiring experienced drivers with clean driving records and investing in safety measures.

How to Get Cheap Truck and Trailer Insurance

Commercial truck and trailer insurance costs can add up, but you still have ways to save on your coverage:

• Compare insurance quotes. Receiving truck insurance quotes from multiple insurers helps you find the most competitive rates for your business. Each insurer weighs risk a little differently, so your rates may vary.

• Bundle policies. Combine your commercial truck insurance with other business policies, like roadside assistance, general liability, or bobtail insurance, since many insurers offer multi-policy discounts.

• Hire safe drivers. Insurance companies reward businesses that hire safe drivers and file very few liability claims. Implementing safety training and regular vehicle maintenance can also reduce your costs over time.

• Increase your deductible. Choosing a higher deductible means you’ll pay more if a claim occurs, but it can lower your monthly or annual premium.

• Pay your premiums in full. Many insurers will offer you a discount for paying your premiums annually instead of monthly.

• Review coverage regularly. As your business changes, your insurance needs evolve, too. Reviewing your policy annually with your insurance agent ensures you’re not paying for unnecessary coverage.

Commercial Truck and Trailer Insurance FAQs