In the trucking industry, there are two avenues to obtain authority for transporting goods:
Leased Owner Operator:
Under this arrangement, you operate as a leased owner operator, working beneath the operating authority of another motor carrier.
Here, you lease your equipment to a larger trucking company, which typically handles tasks like dispatching and administrative work. Insurance costs for leased owner operators range between $5,000 and $8,000 annually.
Single Owner Operator:
Alternatively, you can apply for your own operating authority and function as a single owner operator.
This entails taking responsibility for all aspects of the operation, including finding freight, accounting, administrative tasks, and safety.
Insurance premiums for single owner operators typically fall between $8,000 and $15,000 per year.
Factors Influencing Owner Operator Truck Insurance Costs:
Trucking Authority:
Whether you lease equipment or operate under your own authority impacts insurance costs.
Truck Type:
The size and weight of your truck, as well as your license classification, affect premiums.
Geographical Location and Driving Routes:
Insurance rates vary based on the risk associated with the cities you drive in and the distance covered.
Cargo Hauled:
The nature and value of the cargo influence insurance premiums.
Driving Record:
Safe driving history lowers insurance costs, while accidents and infractions increase them.
Age and Experience:
More experience generally leads to lower insurance costs, with younger drivers considered higher risk.
To obtain a personalized insurance quote for your owner operator trucking business, consult with a specialized CoverWallet trucking insurance agent.
Leased Owner Operator Truck Insurance Costs
Insurance costs for leased owner operator trucking businesses can vary based on several factors discussed previously. On average, you can anticipate annual premiums falling between $3,300 and $6,300.
To ensure comprehensive coverage for various scenarios, it’s crucial to consider four primary types of insurance:
Type of Insurance Cost per Year Coverage Provided Non-Trucking Liability Insurance $300 to $500 Covers incidents occurring when not under dispatch.
Physical Damage Insurance $1,000 to $3,000 Covers truck repair costs in case of theft or accidents.
Occupational Accident Insurance $1,600 to $2,200 Provides coverage for injuries or fatalities in work-related accidents.
Bobtail Insurance $400 to $600 Covers rig damage when not hauling a load but dispatched.
Please note:
These figures are average premiums derived from customer data over a two-year period and may vary based on individual business circumstances. They serve as general estimates rather than precise cost proposals.
Single Owner Operator Insurance Costs
For single owner operator trucking businesses, the combined annual premiums for necessary insurance policies typically range from $5,925 to $14,000.
This estimate excludes workers’ compensation coverage, which varies significantly based on the number of employees.
The required coverages include:
Type of Insurance Cost per Year Coverage Provided Trucking Primary Liability Insurance $2,000 to $5,000 Covers business liability for medical injuries and property damages.
Cargo Coverage $425 to $2,000 Protects against financial loss due to damaged or lost cargo.
Uninsured Motorist Coverage $200 to $800 Covers equipment damage in accidents involving uninsured drivers.
Workers’ Comp Insurance Variations by employee count Provides medical expense coverage for work-related injuries or illnesses.
Please note:
Similar to leased owner operator insurance costs, these figures are averages based on customer data over a two-year period and may vary depending on individual business circumstances.
As with any business, securing appropriate insurance coverage is essential for long-term financial stability.
Whether you’re a leased or single owner operator, consulting with a CoverWallet agent can help determine the specific insurance policies and coverage amounts best suited to your needs.
Also read: New Venture Trucking Insurance: A Complete Review
Frequently Asked Questions:
What Insurance Requirements Apply to Leased Owner-Operators?
When operating under a lease agreement with a trucking company, you typically benefit from primary liability coverage provided by the lessor through their commercial auto insurance policy.
This coverage is a standard inclusion in most leasing contracts, relieving you of the responsibility to pay for damages to individuals or their property in case of an accident.
Moreover, the lessor may extend coverage to your truck under their motor truck cargo policy, offering cargo insurance protection while you’re actively working.
However, it’s essential to note that these coverages typically only apply when you’re under dispatch.
Therefore, if you operate your truck outside of designated dispatch times, you assume full liability.
Where Can I Obtain Insurance Coverage as an Owner-Operator?
Now that you have a clearer understanding of your insurance needs as a truck owner-operator, the next step is ensuring you have the right coverage.
If you’re confident about the types of coverage you require, simply click the “Get a Quote” button above to initiate the process.
However, if you’re unsure about your specific needs, don’t hesitate to reach out to one of our insurance experts at (646) 844-9933.
We’re here to assess your situation and assist you in finding the policy or combination of policies that align with your requirements. Rest assured, the process is straightforward and hassle-free.
Where else can I gather information about trucking insurance for owner-operators?
Explore these resources to expand your knowledge:
- Truck insurance requirements for owner-operators
- Beginner’s guide to becoming a trucking owner-operator
- How to secure freight contracts and loads for owner-operators
- Understanding the cost of truck insurance for owner-operators
- Insights into owner-operator insurance essentials
- Strategies for reducing owner-operator expenses
- Steps to becoming a lease-purchase owner-operator
- Tips for obtaining freight contracts and loads as an owner-operator
What Types of Insurance Coverage Do Truckers Typically Obtain?
- Trucker Insurance
- Box Truck Insurance
- Bobtail Insurance
- Hot Shot Truck Insurance
- Motor Truck Cargo Insurance
- Refrigerated Truck Insurance
- Semi Truck Insurance
- Car Hauler Insurance
- Dump Truck Insurance
- Flatbed Truck Insurance
- General Liability for Truckers
- Owner Operator Insurance
- Log Truck Insurance
- Non-Trucking Liability Insurance
- Trailer Interchange Insurance
- Commercial Trailer Insurance
- Truck Driver Insurance
- Long Haul Trucking Insurance