Best Commercial Truck Insurance Companies of 2024

What is commercial truck insurance?

Commercial truck insurance is a collection of auto insurance policies specifically tailored to trucking and other businesses operating large commercial motor vehicles.

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By law, coverage will always include primary liability insurance, which pays for bodily injury to third parties and damage to their property resulting from an accident. Other common coverage includes physical damage coverage and motor truck cargo insurance.

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Commercial trucks require specialized insurance coverage for a number of reasons:

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• Trucks are more expensive to insure than smaller vehicles because they can cause more damage during an accident.
• Trucks are more expensive to repair or replace.
• Trucks often require specialized coverage, like motor truck cargo insurance, that other commercial vehicles don’t need.

What does commercial truck insurance cover?

What is covered by your commercial truck insurance will depend on the types of coverage you opt for and any exclusions outlined in the policy agreement.

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Most incidents involving your vehicle can be covered – depending on the policy – but it’s important to note that:

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• Coverage is extended to employees operating owned vehicles but regular truck drivers must be named on the policy. Some policies exclude coverage for any drivers that are not named.
• Most policies will cover both the business and personal use of named drivers. However, owner operators that lease onto a motor carrier will be required to carry secondary liability insurance to prevent claims on the carrier’s insurance while driving for personal reasons.

Exclusions

Commercial truck coverage will normally exclude:

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• Intentional damage
• Business property inside the vehicle
• Personal property of drivers

Policy Considerations

Similar to most insurance policies, companies looking for coverage should keep in mind the four basic components of a policy:

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• Coverage – defines what types of damage, which incidents, and what expenses will be covered
• Premiums – how much the policy will cost on an annual or monthly basis
• Deductibles – how much companies will be required to pay out-of-pocket before insurance kicks in; may be a single deductible or broken out by type of coverage‍
• Policy Limits – the maximum the insurer will payout on claims; may be a single limit or broken out by type of coverage
  

Types of Coverage

What your commercial truck insurance policy covers will vary based on your specific needs. Below is an overview of the most common types of coverage.

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Primary Auto Liability

Also known as trucking liability or primary liability, this coverage pays for third-party bodily injury and property damage and is required by law. For interstate truckers, policy limits are set by the FMCSA and for intrastate truckers, policy limits will be set by the state.

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Physical Damage Coverage

Physical damage insurance covers the repair or replacement of owned vehicles or trailers from any covered incidents. The most common types of coverage include:

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• Collision coverage – covers road-related incidents
• Comprehensive coverage – covers most other incidents
• Fire and theft with combined additional coverage – a less expensive alternative to comprehensive, this coverage only covers specific events named in the policy; for example, hail damage might be covered while fire damage is not

Common endorsements include:

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• Gap Coverage – pays the difference between the actual cash value of the vehicle and what is owed on a truck loan
• Mechanical Breakdown Insurance – covers the cost of repairs or replacement for specific parts on the truck
• Rental Reimbursement – covers the cost of renting a truck until the owned vehicle can be repaired or replaced
• Downtime Reimbursement – offsets business losses while the truck is out of operation
• Supplemental Towing – adds flexibility to where a truck can be towed after an incident

Medical

Covers medical payments for truck drivers and their passengers during an accident.

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Uninsured/Underinsured Driver

Provides protection in case a third party is at fault during an accident but doesn’t have sufficient coverage.

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Motor Truck Cargo Insurance

Motor truck cargo insurance protects motor carriers if any goods are damaged or lost while in their possession. Optional endorsements include reefer breakdown coverage, which covers sensitive cargo that is damaged because of refrigeration issues and earned freight coverage, which covers lost income if cargo is damaged and is rejected by the broker or shipper.

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Non-trucking Liability

Most motor carriers require owner operators driving under their authority to carry non-trucking liability insurance, which provides coverage when an owner operator is not driving for the carrier. A trailer may or may not be attached. However, some carriers require owner operators to carry bobtail insurance instead of non-trucking in their lease agreements.

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Bobtail Liability

Some motor carriers require owner operators to carry bobtail insurance, which covers owner operators anytime they are driving without a trailer. The carrier’s lease agreement will dictate whether an owner operator needs non-trucking or bobtail.

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Trailer Interchange Coverage

This coverage protects carriers against physical damage to a third-party trailer in their possession (attached to the truck or not) while under a trailer interchange agreement. Owner operators may also need trailer interchange if they haul trailers owned by their motor carrier.

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Non-owned Trailer

Similar to trailer interchange, non-owned trailer provides protection against any physical damage to a third-party trailer. While a trailer interchange agreement isn’t needed, it only covers trailers while they are attached to the truck. A trailer sitting in a yard would not be covered, even if it is in the possession of the trucker.

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On-hook Coverage

Designed specifically for tow trucks, this covers the repair or replacement of any vehicles that are damaged while they are being towed.