Those that own their own trucks need specific owner-operator truck insurance based on the type of driving they do, the type of cargo transported, and whether they operate under lease with another company or under their own authority.
What owner-operator insurance coverage do I need?
If you are operating under lease to a motor carrier, the carrier will usually provide liability insurance while you’re transporting goods on their behalf that covers injury or damage to property if you’re responsible for an accident. Other owner-operator truck insurance coverage you may need includes:
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Bobtail insurance - This is a liability policy that covers you in the event of an accident if you’re using your truck for commercial purposes but not hauling cargo. This includes driving to and from a pickup or dropoff while you don’t have a trailer attached to your truck, or taking your truck in for maintenance.
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Non-trucking liability - If you use your truck for personal use outside of work, like going to the store, you are required to have a non-trucking liability policy in place.
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Trailer interchange - This covers damage to a trailer that’s attached to your truck that is owned by another person or entity.
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Physical damage - A physical damage policy covers any damage to your truck that occurs as a result of an accident.
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Cargo insurance - This is usually carried if you’re working under your own authority and covers loss or damage to cargo that you transport, such as cars or merchandise.
How much does owner-operator truck insurance cost?
If you are a leased owner-operator, the cost of your policy mainly depends on the value of your truck or any equipment that is permanently attached to it. It’s recommended that you carry bobtail, non-trucking liability, and physical damage. You can expect to pay, on average, $1,500 to $2,500 annually for all three.
If you operate under your own authority, the amount of coverage you need is greater than what you would carry if you were a leased O/O. For a policy that covers one truck and has all of the coverage you need, you’ll pay around $8,000 to $12,500 per year. To find out how much we can save you on your owner-operator truck insurance, get started with a quote online.