How Can You Manage The Cost Of Semi Truck Insurance?

Open road in the mountains

Proper commercial vehicle insurance is both legally required and essential for managing the risks that come with being an owner operator or small carrier.

But it can also bring a lot of headaches. Ever-rising semi truck insurance costs create barriers to entry for obtaining new authorities and can inhibit the growth of your business.

The fact is, you must present proof of insurance before the Federal Motor Carrier Safety Administration will issue your motor carrier, freight forwarder or broker authority.

Failure to maintain proof of insurance can have a number of other negative consequences:

  • State and federal fines
  • Intrusive government inspections
  • Loss of your commercial drivers license
  • Criminal charges in the event of a traffic accident

To help you sort through all of this, let’s take a look at the insurance required to participate in Prime Inc.’s power fleet program, along with some ways to manage your insurance costs.

What Is Commercial Truck Liability Insurance?

Prime Inc. requires a minimum of $1,000,000 of combined auto liability insurance. This type of coverage is also required to get your operating authority from the FMCSA.

  • Public liability insurance protects the truck driver and the public in accidents in which the truck driver is at fault.
  • It covers two types of risk: bodily injury and property damage.
  • Bodily injury coverage pays medical bills if pedestrians or other motorists are injured in an accident caused by the truck driver.
  • Property damage pays for repairs to other people’s property that is damaged as a result of an accident caused by the truck driver.

What Other Types of Semi Truck Insurance Do You Need?

Owner operators or small carriers wanting to participate in Prime Inc.’s power fleet program will also need two additional types of coverage.

  • Cargo insurance. Prime Inc. requires a minimum of $200,000 of cargo legal liability insurance. This type of coverage protects the actual cargo you’re hauling for customers and is essential for all interstate owner operators and carriers.
  • Physical damage insurance for semi trucks. This policy protects a tractor or trailer from physical damage including accidents, vandalism, fire or theft. Prime Inc. requires a minimum of $65,000 of non-owned trailer physical damage insurance.

How Much Does Commercial Truck Insurance Cost?

It’s a good idea to shop around and compare different semi/commercial truck insurance policies that are available to you.

The following information will help insurers determine the coverage you should get and how much you’ll pay in premiums:

  • Driving records for all drivers in your company, including speeding fines and other traffic offenses.
  • Where your trucks are kept when not in service — are they parked in high-risk areas where they are vulnerable to theft, fire or other perils?
  • The size of your trucks and the types of cargo you haul. If you carry hazardous materials, your insurance will cost more.
  • The radius of your operations.
  • The age, condition, and safety features present in your vehicles.

How Can You Keep Your Semi Truck Insurance Costs Down?

Commercial truck insurance can be quite expensive for a number of reasons.

  • Big trucks simply cost more than most consumer vehicles, which naturally makes them more costly to insure.
  • Because of its large size and weight, a big rig can do a lot more damage than a smaller vehicle if it’s involved in a crash.
  • Trucks are more likely to be stolen than cars, both because of their own value and that of the cargo inside.

To minimize your costs, ask insurers about opportunities to earn discounts on your premiums.

  • Many insurers will offer a discount for insuring an entire fleet instead of a single truck.
  • Ask for a multi-year policy with a fixed premium for that length of time.
  • You may qualify for a discount if you pay your entire premium annually instead of in monthly installments.
  • Some insurers offer a discount if you run a safety program to reduce the risk of accidents.
  • A comprehensive preventive maintenance program can also improve the safety of your vehicles and earn lower premiums.


Do you have questions about choosing the right insurance coverage for your semi trucks?

Contact us at Advanced Fleet. We’ll answer your questions so you can get the policy you need without paying more than you have to.