Owner Operator Truck Insurance Guide

owner operator truck insurance 2

So you are launching a business as an owner-operator? You need to know that one of the many legal considerations you will need to deal with is purchasing owner operator truck insurance.  This can be a complicated and confusing task, so you may not know where to begin.

We’re here to help! We will get you through the basics of owner operator truck insurance, so you can feel confident and informed. That way you can make the right decision when purchasing an insurance policy for your trucking business.

owner operator truck insurance


Let’s learn what basic coverage you need and what kind of protection it provides:

  • General Liability – This coverage will protect you from risks that happen off the road, such as wrong delivery, third party injuries, accidents at truck stops and so on.
  • Cargo Insurance – whatever happens to your cargo, this coverage will provide protection, so you won’t have losses.
  • Physical Damage – this coverage will pay for repair and replacement of your equipment if someone damage or steal your truck.
  • Non-trucking Liability / Bobtail Insurance – This insurance offers coverage for damages or injuries to others while the truck is not dispatched on a job and deadheading.
  • Occupational Accident – For example, if you get injured on the job, it will help cover the cost of your medical expenses. If you are disabled by your injury, it will also pay for expenses over the short or long term as needed. Also, it will cover accidental death.
  • Workers Compensation – same as Occupational Accident, but for your employees if you have some.

There are many more coverages you can add, but these are the basic ones you can find from almost every insurance company. Keep in mind that to legally drive a commercial truck on the road, you need public liability insurance which meets minimum federal requirements as set by the FMCSA.

Factors that Affect Your Cost

Like all other forms of insurance, trucking insurance cost is based on risk. The higher your risk, the higher your premiums will be. These are the most common factors that affect your premiums:

  • Age: premiums will start high and get low with your age.
  • Your Driving Record: If you’ve been ticketed or involved in a trucking accident, expect your costs to go up.
  • The Age and Condition of Your Equipment: Insurance companies will charge more if your equipment is in poor condition. Newer trucks also carry higher insurance costs.
  • What You Haul: Oversized loads, dangerous chemicals, and high-theft loads are just some of the things that will cost you more.
  • Where You Drive: Insurance companies base their risk assessment at least partially on what roadways you use most often.
  • State Requirements: In addition, the trucking insurance requirements in your home state will have an impact on your insurance premiums.

Questions to ask

You will need to ask several questions before making the final decision for your owner operator truck insurance policy. You may want to know the following:

  • What are the deductibles for every coverage? 
  • How much can I save by raising the deductible?
  • What are the limits for every different coverage?
  • Do I need all the coverages in my policy?
  • How can I get discounts on my premiums?

What we have for you?

Through the North American Independent Contractors and Owner Operators Association we are able to leverage the purchasing power of the organization. Therefore, this allows us to get more favorable terms from the insurance companies. As a result, you can save from our insurance options.

Call us to discuss which of our coverages is right for you. Also, you can get instant quote right now!