Commercial Trucking Insurance Cost Guide
Everything you need to know about trucking insurance costs, coverage types, and how to get the best rate
Last updated: 2026 | Estimated reading time: 18 min
| Key Takeaways
• Commercial trucking insurance costs between $5,000 and $25,000+ per year depending on truck type, cargo, and driver history. • The FMCSA requires minimum liability coverage ranging from $300,000 to $5,000,000 based on what you haul. • Owner-operators on their own authority pay significantly more than those leased to a carrier. • Your driving record, cargo type, radius of operation, and years in business are the biggest cost drivers. • Shopping multiple carriers annually and installing safety technology can meaningfully reduce your premiums. |
If you have recently started researching commercial trucking insurance, you have likely encountered a wide range of quoted figures with very little explanation of what drives the difference. One operator pays $6,000 a year. Another pays $22,000 for what appears to be the same coverage. Understanding why that gap exists, and where your operation falls within it, is the foundation of making smart insurance decisions.
This guide explains what commercial trucking insurance costs across different truck types and business models, breaks down the coverage options available, identifies the ten factors underwriters weigh most heavily, and offers practical strategies for lowering your premiums without sacrificing protection. Whether you are an owner-operator just getting started or managing a small fleet, this resource is designed to give you the knowledge to have a more informed conversation with any insurer or broker.
Personal auto insurance policies contain what is known as a commercial use exclusion. If you are involved in an accident while operating a vehicle for business purposes hauling cargo, making deliveries, or transporting goods for hire a personal policy will typically deny the claim. This exclusion is not a technicality buried in fine print; it is a core feature of how personal auto products are structured and priced.
Commercial trucking insurance is purpose-built for vehicles used in the business of transporting goods. It accounts for the substantially higher liability exposure associated with large vehicles, the value of cargo being carried, the long distances involved, and the complex regulatory environment that governs for-hire carriers in the United States.
Beyond the fundamental coverage difference, commercial trucking policies are also subject to federal oversight through the Federal Motor Carrier Safety Administration (FMCSA), which sets minimum liability requirements that vary based on what a truck is carrying and its operating weight. No personal auto policy is designed to meet those standards.
Commercial trucking insurance is required for any business or individual using a motor vehicle to transport property for compensation. That definition is broader than many people initially assume. The following categories of operators are all required to carry commercial coverage:
Even if you are leased to a large carrier, you are not necessarily covered by their policy for all situations. Understanding exactly what a carrier’s policy does and does not cover for leased drivers is a critical step before purchasing your own coverage.
Commercial trucking insurance costs between $5,000 and $25,000 or more per year for most owner-operators and small fleets. The wide range reflects meaningful differences in truck type, operating radius, cargo, driver history, and coverage levels. Most owner-operators with clean records running under their own authority can expect to pay between $9,000 and $16,000 annually for a full coverage package.
The table below reflects typical annual premiums based on national averages reported by major commercial trucking insurers. Actual rates in your state and for your specific operation may differ.
| Truck / Business Type | Avg. Annual Cost | Avg. Monthly Cost | Notes |
| Owner-operator (leased to carrier) | $5,000 – $9,000 | $415 – $750 | Carrier covers primary liability; driver needs bobtail/NTL + occupational accident |
| Owner-operator (own authority) | $9,000 – $16,000 | $750 – $1,333 | Must carry full primary liability; highest exposure |
| Box truck – local delivery | $3,000 – $7,000 | $250 – $583 | Lower weight class; shorter radius reduces rates |
| Semi-truck – regional (< 500 mi) | $8,000 – $14,000 | $667 – $1,167 | Moderate rates; depends heavily on cargo type |
| Semi-truck – long haul (OTR) | $10,000 – $25,000+ | $833 – $2,083+ | Highest exposure; multi-state risk and cargo value |
| Small fleet (3–5 trucks) | $15,000 – $50,000+ | $1,250 – $4,166+ | Fleet discounts partially offset higher total; depends on drivers |
| Important Note on These Figures
Cost data reflects national averages compiled from publicly available insurer rate guides and industry surveys. Your actual premium will be determined by your specific underwriting profile. Rates in high-litigation states such as California, Florida, and Texas are typically 20 to 40 percent higher than the national average. |
Most operators carry a bundle of coverage types rather than a single policy. The table below breaks down what each coverage type typically costs on its own and what it protects.
| Coverage Type | Typical Annual Cost | What It Covers |
| Primary Liability | $5,000 – $18,000 | Bodily injury and property damage you cause to third parties; required by FMCSA for all for-hire carriers |
| Physical Damage | $1,000 – $4,000 | Damage to your own truck from collision, theft, fire, or weather (collision + comprehensive combined) |
| Motor Truck Cargo | $400 – $1,800 | Loss or damage to the freight you are hauling; often required by shippers and brokers |
| Bobtail Insurance | $300 – $700 | Covers your tractor when operating without a trailer, regardless of dispatch status |
| Non-Trucking Liability | $300 – $900 | Liability protection for personal, non-business use only; does not cover driving under dispatch |
| General Liability | $500 – $2,000 | Premises and operations liability; covers loading dock incidents, slip-and-fall injuries, and similar claims |
| Occupational Accident | $1,200 – $2,500 | Covers driver injury and death; common alternative to workers’ compensation for owner-operators |
To put these numbers in practical terms, here is what a hypothetical owner-operator on their own authority hauling dry van freight under a standard profile might expect to pay:
| Coverage | Estimated Annual Cost |
| Primary Liability ($1M limit) | $7,500 |
| Physical Damage (truck value: $85,000) | $2,200 |
| Motor Truck Cargo ($100,000 limit) | $900 |
| Non-Trucking Liability | $450 |
| Occupational Accident | $1,500 |
| Total Estimated Annual Premium | $12,550 |
Profile assumed: 5 years CDL experience, clean MVR, dry van freight, 48-state operating radius, truck value $85,000, domiciled in Midwest.
Underwriters do not assign premiums arbitrarily. Every number in your quote is the output of a risk model that weighs a specific set of variables. Understanding those variables gives you both a clearer picture of your current rate and a roadmap for where improvement is possible.
Cargo is one of the most consequential variables in your premium calculation. From an underwriter’s perspective, what you haul determines both the severity of potential claims and the regulatory environment that governs your operation.
General commodities such as dry goods, retail merchandise, and manufactured products fall at the lower end of the risk spectrum. Moving up the scale, refrigerated (reefer) freight introduces spoilage risk and higher cargo values. Flatbed operations carry risk related to load securement and oversized permits. At the top of the risk ladder are hazardous materials (hazmat) loads, which not only carry dramatically higher cargo liability exposure but also trigger FMCSA’s elevated insurance minimums of $1,000,000 to $5,000,000 in primary liability.
If your operation hauls multiple commodity types, insurers will typically rate your policy based on the highest-risk freight in your profile.
The geographic scope of your operation directly affects the frequency and severity of exposure. Insurers classify operations broadly as local (under 50 miles), intermediate (50 to 200 miles), and long-haul (over 200 miles or multi-state).
Long-haul operations face more hours on the road, more diverse road conditions, exposure to states with higher litigation rates, and less ability for the driver to return home for proper rest. All of these factors compound risk and translate to higher premiums. An owner-operator doing local delivery work in a single metro area may pay 30 to 50 percent less than a comparable long-haul driver, all else being equal.
Motor vehicle records (MVRs) are among the first documents an underwriter reviews. At-fault accidents, moving violations, DUI convictions, and license suspensions all raise your rate, with the severity of the impact depending on the nature of the violation and how recently it occurred. Most violations carry a 3-year rating window; more serious incidents such as DUIs can affect rates for 5 to 7 years.
Experience matters as much as history. Drivers with fewer than two years of commercial driving experience are considered high-risk by most standard market insurers. New CDL holders often pay 20 to 40 percent more than drivers with 5 or more years of clean driving, and some standard carriers will decline to write new authorities with drivers under a certain experience threshold. This is one of the most powerful long-term levers for reducing premiums: a sustained clean record over 3 to 5 years can materially lower your rate at renewal.
Physical damage coverage which pays to repair or replace your truck is priced as a percentage of the vehicle’s insured value. This means a newer, higher-value tractor generates higher physical damage premiums than an older, lower-value unit.
Older trucks sometimes present a different challenge: if the truck is financed, lenders typically require you to carry physical damage coverage regardless of the vehicle’s depreciated value, which can make the coverage expensive relative to the truck’s worth. Some operators with paid-off, older trucks elect to drop physical damage coverage once the value falls below the deductible threshold, though this decision should be weighed carefully against the cost of replacing the truck out of pocket.
How your business is set up legally has a direct bearing on your insurance costs. There are two primary operating structures for owner-operators:
The insurance cost difference between these two structures is substantial. An operator leased to a carrier might spend $5,000 to $8,000 per year total. The same operator running under their own authority might spend $12,000 to $18,000 or more for equivalent protection.
Insurance rates are partially driven by the regulatory and legal environment of the states where you operate and where your business is domiciled. States with high rates of commercial vehicle litigation, strong plaintiff-friendly legal climates, or high medical cost indices tend to have higher base insurance rates.
California, Florida, and Texas consistently rank among the most expensive states for commercial trucking insurance. The Northeast corridor also tends to carry higher rates due to traffic density and infrastructure complexity. If your routes run primarily through these states, you should expect your liability rates to reflect that exposure even if your business is domiciled elsewhere.
Your loss history is a direct measure of the risk you have already demonstrated. Insurers typically request 3 to 5 years of loss runs formal documentation of all claims during that period when underwriting a new policy or renewal.
A single at-fault accident can raise your renewal premium by 15 to 35 percent. Multiple claims within a 3-year window can move you out of the standard market entirely and into the surplus lines market, where rates are less regulated and significantly higher. Operators with a history of no claims, by contrast, often qualify for loss-free discounts and preferred market access at renewal.
One practical implication: for smaller physical damage claims that are below or close to your deductible amount, many experienced operators choose to pay out of pocket rather than file a claim, preserving their loss history for more significant incidents.
Higher coverage limits cost more. Most carriers require $1,000,000 in primary liability regardless of FMCSA minimums, and shippers increasingly require this as well. But the incremental cost of raising your limit from $750,000 to $1,000,000 is generally modest compared to the protection it provides.
Deductibles work in the opposite direction: a higher deductible means a lower premium. Many operators carry a $2,500 to $5,000 deductible on physical damage coverage to reduce their annual cost. This approach makes the most sense when you have sufficient cash reserves to cover the deductible in the event of a loss and when your truck is older and of lower replacement value.
More miles driven equals more exposure, and insurers price accordingly. Annual mileage estimates are a standard part of the underwriting application for any commercial policy. Underestimating your mileage to lower your quoted premium is not advisable: if a claim occurs and your actual mileage substantially exceeds the stated figure, the carrier may have grounds to reduce or deny the claim.
Some insurers offer low-mileage programs or usage-based pricing for operators who drive significantly fewer miles than the industry average. If your annual mileage is below 50,000 miles, it is worth specifically asking about reduced-mileage pricing options when shopping coverage.
In most states, insurers are permitted to use business and personal credit scores as a rating factor. A stronger credit profile is associated with lower claim frequency in actuarial data, and carriers price this accordingly. The relationship is not dramatic, but credit score improvements over time can contribute to modest premium reductions.
Business age is a related factor. New businesses typically those with fewer than 2 to 3 years of operating history are treated as higher risk because they lack a verifiable loss history. New motor carrier authorities often face higher rates and more limited market access for their first two to three policy years. This dynamic eases as your business establishes a track record.
The Federal Motor Carrier Safety Administration establishes minimum insurance requirements for all motor carriers operating in interstate commerce. These are legal floors, not recommendations. Operating without meeting these minimums can result in your operating authority being revoked, significant fines, and personal liability exposure in the event of an accident.
| Operation Type | Minimum Liability Required |
| For-hire passenger carriers (buses) | $5,000,000 |
| For-hire carriers hauling hazardous materials (certain classes) | $5,000,000 |
| For-hire carriers hauling hazardous materials (other classes) | $1,000,000 |
| For-hire freight carriers, vehicles over 10,001 lbs (non-hazmat) | $750,000 |
| For-hire freight carriers, vehicles under 10,001 lbs (non-hazmat) | $300,000 |
| Private carriers transporting non-hazardous freight | $750,000 |
While FMCSA sets the legal minimums, the market often demands more. The majority of freight brokers and shippers require a minimum of $1,000,000 in auto liability coverage before they will tender loads to a carrier. Many larger shippers and dedicated contract operations require $2,000,000 or more. If your policy only meets the federal minimum and a broker requires $1,000,000, you will be unable to accept that load until your coverage is increased.
The practical standard for most over-the-road operators is $1,000,000 in primary auto liability. Building your policy around this figure rather than the FMCSA minimum is generally advisable regardless of cost, as the incremental premium difference is typically modest.
Trucking insurance is a significant operating cost, and like all major expenses, it is worth actively managing. The following strategies are the most reliable ways to reduce your premiums over time.
This is the single most impactful factor within your direct control. A clean MVR with no at-fault accidents or moving violations for three or more consecutive years qualifies you for preferred market access and loss-free credits that can reduce your premium by 10 to 20 percent. If you have drivers in your fleet, investing in ongoing driver training and monitoring is a direct investment in lower insurance costs.
Dashcams, electronic logging devices (ELDs), GPS tracking, forward collision warning systems, and lane departure alerts all reduce the frequency and severity of accidents. More importantly for your premiums, many insurers now offer documented discounts of 5 to 15 percent for fleets with verified telematics programs. Beyond the discount, dashcam footage is increasingly valuable in defending against fraudulent or exaggerated third-party claims.
Placing your primary liability, physical damage, cargo, and ancillary coverages with the same insurer typically results in a multi-line discount and reduces the administrative complexity of managing multiple policies. It also simplifies claims coordination when a single incident involves multiple coverage types.
If you have sufficient cash reserves to absorb a larger out-of-pocket loss, increasing your physical damage deductible from $1,000 to $2,500 or $5,000 can produce meaningful annual savings. This strategy is most effective when your truck is paid off and you are self-funding the deductible risk rather than layering it on top of a loan obligation.
The commercial trucking insurance market is competitive, and carrier appetite for specific risk profiles changes year to year. An insurer that was highly competitive for your profile two years ago may be pulling back from that segment today, and a new entrant may be aggressively pricing your type of operation. Obtaining three to five competitive quotes at each renewal is the most reliable way to ensure you are not overpaying due to carrier inertia.
Working with an independent agent who specializes in commercial transportation rather than a general commercial lines agent gives you access to a broader range of specialty markets that may not be available through a captive agent or direct insurer channel.
Several major trucking associations have negotiated group rate programs with preferred carriers on behalf of their members. Owner-Operator Independent Drivers Association (OOIDA), state trucking associations, and commodity-specific trade groups are worth investigating. Group programs do not work for everyone, but for operators who fit the preferred profile of the group’s insurer, the savings can be meaningful.
Some insurers offer premium credits for completion of certified safety training programs, particularly for newer drivers or operators with recent violations. Programs recognized by the Smith System, the National Safety Council, or FMCSA-affiliated organizations are worth documenting and presenting to underwriters at renewal.
Obtaining an accurate quote requires gathering a specific set of information about your operation before approaching insurers or brokers. Going into the process prepared allows you to receive apples-to-apples comparisons across carriers and avoid the delay of back-and-forth information requests.
There are several channels through which you can access commercial trucking insurance markets:
Independent agents who specialize in trucking and commercial transportation have direct relationships with multiple specialty carriers and can access markets that general agents cannot. For most owner-operators and small fleets, this is the most effective channel for obtaining comprehensive coverage at competitive rates.
Several large insurers serve the commercial trucking market directly, including Progressive Commercial, Sentry Insurance, and Old Republic Insurance. Going directly may be faster for straightforward risks, though it limits you to a single carrier’s appetite and pricing.
Platforms such as CoverWallet, Insureon, and Simply Business allow you to obtain multiple quotes online with a single application. These platforms work best for lower-complexity risks such as box trucks and local delivery operations. Complex long-haul operations and specialized cargo may benefit from direct broker engagement.
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Yes. The FMCSA requires all for-hire motor carriers operating in interstate commerce to carry a minimum level of liability insurance as a condition of obtaining and maintaining operating authority. The required minimum varies based on the type of freight hauled and the vehicle’s gross weight. Operating without FMCSA-required insurance is a federal violation and can result in revocation of your operating authority, civil penalties, and personal liability in the event of an accident. Even private carriers operating vehicles over 10,001 lbs are subject to federal minimum requirements.
For a long-haul semi-truck operated under independent authority, monthly insurance costs typically range from $833 to $2,083, corresponding to $10,000 to $25,000 annually for a comprehensive coverage package. Owner-operators leased to a carrier pay significantly less roughly $415 to $750 per month because the carrier’s policy covers primary liability. These are national averages; your actual monthly cost will depend on your specific profile, state of operation, and coverage limits.
Yes, though your options and costs will differ significantly from those available to drivers with clean records. Drivers with serious violations such as DUIs, reckless driving convictions, or multiple at-fault accidents within the past three to five years are typically declined by standard market carriers. The non-standard or surplus lines market accessed through specialty brokers will write higher-risk profiles, but rates are substantially higher and coverage terms may be more restrictive. The most effective path to better rates is a sustained period of clean driving, typically three years without a reportable incident, which allows you to return to the standard market at significantly lower rates.
These two coverage types are frequently confused but cover distinct situations. Bobtail insurance covers your tractor when it is being operated without a trailer, regardless of whether you are currently under a dispatch assignment. Non-trucking liability insurance covers your tractor only during personal, non-business use specifically when you are not under dispatch and not hauling freight. The key distinction: if you are driving your bobtail between loads on a return trip that is part of your business operations, bobtail coverage applies. If you are using your truck on a weekend for a personal errand completely unrelated to your business, non-trucking liability coverage applies. Many owner-operators leased to carriers are required to carry one or both of these coverages to fill the gap left by the carrier’s policy during off-dispatch periods.
Motor truck cargo insurance covers the freight you are transporting against loss or damage while in your care, custody, and control. It is not required by federal law, but it is required by most freight brokers and many shippers as a condition of doing business with them. Standard cargo policies cover general commodities against named perils such as fire, theft, and collision. If you haul high-value or specialized freight, you may need endorsements for refrigeration breakdown, earned freight, or debris removal. Cargo policy limits are set per occurrence and should reflect the maximum value of any single load you transport.
In most states, yes. Commercial insurers are permitted to use credit-based insurance scoring which draws on both business and personal credit data as a rating factor. This is because actuarial data shows a statistical correlation between credit profile and claim frequency. The impact is not as pronounced as factors like driving record or cargo type, but a materially better credit score can contribute to lower premiums at renewal. A small number of states, including California, Hawaii, and Massachusetts, restrict the use of credit scoring in insurance rating.
Loss runs are formal claim history documents produced by your current and prior insurers. You are entitled to request them from any insurer with whom you have had a policy in the past five years. Simply contact your insurer or broker and request 3 to 5 years of loss runs for your policy. Most carriers are required to provide them within 10 to 15 business days. Having your loss runs ready before approaching new carriers significantly speeds up the quoting process and demonstrates organization to prospective underwriters.
Commercial trucking insurance is one of the highest recurring costs in any trucking operation, and it is also one of the most variable. Two operators running identical equipment on similar routes can pay dramatically different premiums based on their driving history, cargo profile, operating authority structure, and the carriers they have access to.
The most important takeaways from this guide are straightforward: your driving record and claims history are the variables with the greatest long-term impact on your cost, and they are entirely within your control. Investing in safety technology, maintaining clean driving standards, and working with a broker who has deep experience in commercial transportation are the most reliable levers for reducing your premiums while maintaining adequate protection.
Insurance requirements and carrier appetites change year to year. Shopping your coverage annually, keeping your loss runs current, and understanding what is actually driving your rate will always put you in a stronger negotiating position than simply accepting a renewal quote without question.
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Disclaimer: This article is provided for general informational purposes only and does not constitute insurance, legal, or financial advice. Coverage requirements, rate ranges, and regulatory minimums are subject to change. Consult a licensed commercial insurance professional for advice specific to your operation.
