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Tag: commercial auto liability insurance

  • What Is Commercial Trucking Insurance? 2025 Guide to Truck Insurance Coverage

    Whether you’re hauling freight across state lines or making local deliveries, commercial trucking insurance is a must. But what exactly does it cover, and how much does it cost in 2025?

    In this FAQ-style guide, we break it all down—using recent data, clear definitions, and insights truckers can trust.

    What Is Commercial Trucking Insurance?

    Commercial trucking insurance is a policy designed to protect trucks, drivers, cargo, and businesses from financial losses due to accidents, theft, breakdowns, and liability claims. Unlike personal auto insurance, this coverage is built for heavy-duty commercial vehicles and the unique risks of the trucking industry.

    What Does It Cover?

    Typical commercial trucking insurance includes several types of coverage. Here’s a quick breakdown:

    Type of CoverageWhat It Covers
    Auto LiabilityBodily injury or property damage to others caused by your truck
    Physical DamageRepairs to your own truck due to collision, fire, theft, or vandalism
    Motor Truck CargoLoss or damage to the cargo you’re hauling
    General LiabilityCoverage for business-related risks outside of operating the truck
    Bobtail/Non-Trucking UseCoverage when the truck is used without a trailer or not under dispatch
    Trailer InterchangeDamage to non-owned trailers under interchange agreements

    (Source: National Association of Insurance Commissioners)

    What’s the Average Cost of Trucking Insurance in 2025?

    According to 2024 industry data from the American Transportation Research Institute, average annual premiums vary by operation type and location:

    Type of OperationAverage Annual Premium (2024)
    Owner-Operator (Lease On)$4,500 – $7,000
    Owner-Operator (Authority)$9,000 – $16,000+
    Small Fleet (3–10 trucks)$12,000 – $25,000 per truck
    New Authority (First Year)$15,000 – $30,000+ per truck

    (Source: ATRI Operational Costs Report, 2024)

    Key Factors That Affect Cost:

    • Driving record
    • Truck value and type
    • USDOT safety history
    • Operating radius
    • Cargo type
    • Location and garaging ZIP code

    Who Needs Commercial Truck Insurance?

    If you operate any of the following, you’re likely required by law to carry commercial trucking insurance:

    • Owner-operators with their own authority
    • For-hire carriers
    • Freight brokers who own assets
    • Private fleets or logistics companies
    • Hotshot and box truck drivers

    FMCSA regulations mandate a minimum liability coverage of $750,000 to $5 million, depending on cargo type. Most brokers require at least $1 million in coverage to work with you (FMCSA, 2025).

    Can I Get Commercial Truck Insurance Online?

    Yes—and that’s where platforms like Logrock come in.

    We make it easy to get multiple trucking insurance quotes with just one application, using smart tools like:

    • FMCSA lookup to auto-fill your DOT info
    • VIN decoder for faster truck details
    • Google Maps address autofill

    It’s trucking insurance, built for the road. Be sure to check out our other blogs for a deeper look at what makes our mobile-friendly quote form stand out—and get valuable insights on insurance for new authorities, renewals, and more.

    –Built for the Road: Why Our Mobile-First Quote Form Matters

    –Why Do You Need Commercial Trucking Insurance?

    –Affordable Trucking Insurance: How to Save Big on Coverage

    –How To Prepare for the FMCSA Authority Application

    Final Take: Why Commercial Truck Insurance Matters

    Trucking is the backbone of the U.S. economy—but it comes with serious risk. One accident, cargo loss, or claim could put your entire operation at risk. Commercial trucking insurance protects you, your business, and your future on the road.

    Ready to start saving? Get A Quote in Minutes!

    Sources:

    1. National Association of Insurance Commissioners (2024). Commercial Auto Insurance Overview. Retrieved from naic.org
    2. American Transportation Research Institute (2024). Operational Costs of Trucking. Retrieved from truckingresearch.org
    3. Federal Motor Carrier Safety Administration (2025). Minimum Insurance Requirements. Retrieved from fmcsa.dot.gov

  • Everything That Affects the Cost of Truck Insurance: What Every Trucker Should Know

    If you’re a trucker or run a trucking business, you’ve probably wondered: Why does truck insurance cost what it does? The truth is, commercial trucking insurance rates are affected by a wide range of factors — from your zip code to your driving record. At Logrock, we make truck insurance easy by helping you understand exactly what goes into your premium so you can make smart decisions on the road and in your business.

    Whether you’re just starting your authority or you’ve been in the game for years, here’s everything that affects the cost of your truck insurance.

    1. Your Home State and Business Location

    Insurance carriers base their starting rates on your business’s home state, including its zip code and regulatory environment. If you’re set up in a state different from where you’re licensed or live, you might face higher rates or delays.

    ✅ Pro tip: Keep your licensing, residence, business registration, and insurance all in the same state to avoid complications and reduce risk.

    2. Your Credit Score (Yes, It Matters!)

    The credit score of the business owner or responsible party can significantly impact premiums. A strong credit scoremeans:

    • Lower down payments
    • Longer payment options
    • More competitive rates

    Trying to “game the system” by adding someone with good credit (like grandma) to your LLC? Don’t. It could be seen as material misrepresentation, and it’s not worth the risk.

    3. Your Vehicle’s Age, Type & Value

    Not all trucks are rated equally. Insurers consider:

    • Year of the truck: Newer trucks cost more to insure.
    • Truck value: A $100K rig will cost more than a $25K one.
    • Vehicle weight class: Heavier trucks (like semis) usually cost more than box trucks or lighter vehicles.

    4. Driver Factors: Age, Record & Licensing State

    Here’s what insurers look at:

    • Driver age: Younger drivers (especially under 23) often pay more. Discounts start around age 35.
    • Driving record: Accidents, violations, and claims within the last 3–5 years will raise rates.
    • License state: If your driver is licensed in a different state from your business, expect a surcharge.
    • Owner-driver status: If the owner isn’t listed as a driver, insurance costs can rise.

    5. Where Your Truck is Parked (Garaging Address)

    Where your truck sleeps at night matters. Even if it’s parked a few miles away in a different zip code, the rate can change.

    • Garaging address should ideally match your business and policy state.
    • Out-of-state garaging often increases rates.

    6. Coverages and Policy Limits

    The more coverage you add, the more your premium will cost.

    Standard limits:

    • $1,000,000 in auto liability
    • $100,000 in cargo insurance

    Starting with liability-only and adding cargo later can save money when you’re just getting your MC authority. But remember, more coverage = more cost.

    7. Deductibles

    Want a lower premium? Raise your deductibles.

    Example:

    • $500 deductible = higher premium
    • $2,500 deductible = lower premium

    This is especially true for collision and comprehensive coverage on your truck.

    8. Prior Insurance History

    Insurance carriers reward consistency.

    If you already have:

    • Personal auto insurance
    • Previous commercial trucking insurance

    You could be eligible for a discount. If not, expect higher rates, especially with companies like Progressive.

    9. ELD Discounts

    Some carriers offer up to 20% off your premium for using ELDs (Electronic Logging Devices). For new ventures, it’s typically a 5% discount, but that adds up quickly.

    💡 Make sure to ask your agent about the ELD discount — not all include it automatically.

    Final Thoughts

    At Logrock, we believe in making truck insurance simple, transparent, and built for truckers like you. Knowing what impacts your rates gives you the power to make better choices for your business.

    Whether you’re just getting started or looking to save more on your renewal, we’re here to help you navigate the road ahead.

    Need help finding the best rate?
    📲 Start your quote today with Logrock — the fastest, easiest way to get covered.