What You Need to Know About Truck Owner Operator Insurance
In the trucking industry, you have two different options for obtaining authority to transport goods.
1. Leased owner operator. The first option is to simply become a leased owner operator, where you're working underneath another motor carrier's operating authority. As a leased owner operator, you lease your equipment to a larger trucking company. The larger company will typically take care of things like dispatching and administrative work.
Leased owner operators can expect to pay between $5,000 and $8,000 per year for insurance.
2. Single owner operator. The second option is to apply for your own operating authority and become a single owner operator. With this method, you work under your own authority and are responsible for all parts of the process. This includes finding freight, accounting, administrative tasks, and even safety.
Single owner operators can expect to pay about $8,000 to $15,000 per year for your insurance policy.
What Affects the Cost of Owner Operator Truck Insurance?
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Average Cost of Owner Operator Truck Insurance
As you've learned, there are many factors that go into determining what your commercial owner operator truck insurance costs. From the amount of driving experience that you have to the types of loads that you haul, it can be hard to determine what you may pay for insurance.
Your best bet is to contact a specialized CoverWallet trucking insurance agent to get a personalized premium for your business.
Leased Owner Operator Truck Insurance Costs
While the costs of these insurance coverages do vary depending on the numerous factors that we went over above, you can expect to pay between $3,300 and $6,300 annually for your leased owner operator trucking business.
To ensure that you're going to be covered for various events that may happen, you'll want to look into four main types of insurance coverage. These include:
| Type of insurance | Cost of insurance per year | What the insurance covers |
|---|---|---|
| Non-Trucking Liability Insurance | $300 to $500 | This type of insurance policy coverage is for issues that happen when you're not under dispatch. |
| Physical Damage Insurance | $1,000 to $3,000 | This insurance covers the cost of repairing your truck if it's stolen or involved in an accident. |
| Occupational Accident Insurance | $1,600 to $2,200 | If you're injured or killed in a work-related accident, this insurance covers you. |
| Bobtail Insurance | $400 to $600 | This type of insurance policy covers damage to your rig in the event that you're not hauling a load but you are dispatched to one. |
Disclaimer: These are average insurance premiums taken from customer data over a two year period and will vary depending on the cutomser’s business. They should not be taken as a definitive cost proposal.
Single Owner Operator Insurance Costs
When you combine all of the insurance policies that you need for your single owner operator trucking business, you can expect to pay anywhere between $5,925 and $14,000 per year.
This excludes the cost of workers' compensation coverage, which varies drastically depending on how many employees you have at your business.
You'll need all of the following coverages:
| Type of insurance | Cost of insurance per year | What the insurance covers |
|---|---|---|
| Trucking Primary Liability Insurance | $2,000 to $5,000 | This type of insurance policy covers your business in the event that you're found at fault for medical injuries and/or property damages. |
| Cargo Coverage | $425 to $2,000 | This type of insurance covers your business from financial loss in the event of damaged or lost cargo. |
| Uninsured Motorist Coverage | $200 to $800 | This type of insurance covers any damage to your equipment in the event that you're involved in an accident with an uninsured driver. |
| Workers' Comp Insurance | Varies depending on employee numbers. | If you have existing employees or plan on hiring some, you'll need workers' compensation coverage. This pays for medical expenses for employees that are injured due to a work-related accident or illness. |
Disclaimer: These are average insurance premiums taken from customer data over a two-year period and will vary depending on the cutomser’s business. They should not be taken as a definitive cost proposal.
As with any type of business, you'll need to obtain the appropriate amount of insurance to ensure the financial future of your business. As a leased or single owner operator business, it's best to check in with a CoverWallet agent to determine the specific types of insurance policies that you need and the amount of coverage that makes sense for each policy.
Frequently asked questions
What Are the Insurance Requirements for Leased Owner-Operators?
If you're operating under a lease with a trucking company, you likely already have primary liability coverage. The lessor typically provides that under their commercial auto insurance policy.
It's a common part of most leasing agreements. It means you won't have to worry about paying for damages to people or their property if you cause an accident.
Also, the lessor may cover your truck under their motor truck cargo policy. That provides you with cargo insurance coverage when you're working.
Be aware, however, that those coverages typically don't apply unless you're under dispatch. So, you'll be fully liable if you drive your truck on your own time.
Where can I find insurance coverage for me as an owner-operator?
Now you should have a better idea of your insurance requirements as an owner-operator of a truck. However, knowing what you need and making sure you have it are different matters altogether. If you're already certain what types of coverage you need, you can click the get a quote button above to get started.
If you're not sure, contact one of our insurance experts by calling (646) 844-9933. We'll go over your situation and help you find the policy or policies that meet your needs. The process couldn't be easier.
Where else can I find out more about trucking insurance for owner operators?
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