by Ed S. Illinois Trucking Insurance Specialist in Chicago

Varying Insurance Cost for Semi Trucks

Why do some truckers pay more than their counterparts to insure their semi trucks or trailers?  The answer is very simple: there are several trucking insurers that set their rates based on different criteria, and while you and your friends may be operating similar trucking businesses, information offered to two insurers may lead to significantly higher or lower premiums.

Important coverages required by trucking operations include the following types:Liability Insurance for Trucking Operations

Primary Liability Insurance for Trucking Operations

This is bodily injury and property that must be maintained by the trucking company. Trucking companies that are required to have federal or state filing must maintain a minimum of $750,000 combined single liability limits. The limit is $1 million for trucking business involving hauling hazardous material (HAZMAT). All semi trucks owned or leased by the trucking company must maintain primary liability coverage.

Liability insurance rates for semi trucks are based on several factors. Most important factors include radius of operations, garaging ZIP code, age and driving history of driver, & CDL experience of the driver. Progressive trucking insurance places extra importance on prior and continuous insurance of the client as well as the credit score of the business owner.

Cargo - Inland Marine Insurance Coverage

 This is an inland property coverage on the merchandise hauled. The price vary on the radius of operation, insurance limits on value of the merchandise and, most importantly, type of merchandise. hauled. Insurance cost for cargo insurance runs from 1% on the most common type of paper product, plastic product, household supplies to as high as 5% (or more) on certain items like designer clothes, new vehicles, frozen food, etc.

Physical Damage for Semi Trucks & Trailer Interchange Insurance

This is a comprehensive and collision coverage on the semi trucks and trailers listed on the policy. The cost of insurance ranges from 4% to 5% of the market value of the semi truck and trailers. There is a deductible that apply to physical damage coverage. The deductible normally runs at $1000 each occurrence.

Non Trucking Insurance Vs Bobtail Insurance

Owner operators who lease their equipment to a trucking company that maintains primary liability that covers those owner operators when they are under dispatch may require a non trucking or bobtail policy. While many agents use the same term to describe such coverage there is slightly different meaning for them. A Non-Trucking Liability policy covers claims that result when the owner operator is not under dispatch. A Bobtail Liability Policy covers losses  which result when a trailer is not attached to the owner operator semi truck, regardless if or not the semi truck  is under dispatch.

Most carriers will not sell the non trucking policy or bobtail as mono line. They insist on also selling physical damage on the semi truck. Owners operators will not be looking to get primary insurance, trailers interchange insurance or cargo insurance. They will be covered for those under their lease agreement with the trucking company that leases their semi trucks.

Major pricing factors include radius of operations, garaging ZIP code, age of the driver and CDL experience, and value of the semi truck. Progressive trucking insurance will also consider prior insurance experience of the owner operator.
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