What Types of Truck Insurance Coverage Do You Need?

a red truck on a highway

No matter what type of vehicle you are driving, it’s important that you carry an adequate amount of auto insurance. While a minimum amount of liability insurance is required in most states, auto insurance coverage is also a smart investment. Vehicle insurance serves as a safety net to help protect you against financial losses resulting from an accident. Without insurance, you would be responsible for covering the full cost of your vehicle and the damage to any others if you cause an accident.

While personal vehicles can be expensive assets, commercial trucks can require an even more significant investment. Commercial truck insurance, like regular car insurance, can help protect you and your truck and trailer in the event of an accident. No matter if you are the owner-operator of an independent trucking company or a large business operating a fleet of commercial trucks, you need to have the right insurance to protect your business. The truck insurance package you decide on for your company will likely include several types of insurance depending on your needs and the nature of your trucking business. Understanding your options will help you decide which combination of truck insurance coverage you require. Let’s look at a few types of commercial truck insurance that might be beneficial for your business.

Liability Insurance


Similar to regular liability auto insurance mandated by state law in most locations, auto liability is also mandated for commercial trucks. The Federal Motor Carrier Safety Administration (FMCSA) mandates that commercial trucks carry a combined single limit policy of at least $750,000. Commercial trucking companies must carry a combined single limit policy of at least $1 million. You may also have to carry a minimum amount of liability insurance required by your state. Liability insurance will help cover your responsibility for bodily injury and property damage claims made by other drivers if you are involved in an at-fault accident.

Liability insurance will cover medical bills and vehicle repair or replacement costs for other drivers. It might also be beneficial for covering legal fees if other drivers seek action as a result of an accident. While liability insurance will help pay for damage to other drivers, it will not cover losses or expenses related to damages you suffer if you cause an accident.

Physical Damage Insurance


Physical damage coverage is a commercial truck insurance policy similar to full coverage for your personal vehicle. This is an optional policy; however, it is strongly suggested, as it helps to pay for you and your truck no matter who is at fault in an accident. Comprehensive and collision coverage will ensure that medical bills or property damage you suffer will be covered. Additionally, this insurance will also cover damage or loss related to natural disasters, theft, vandalism, or other non-accident-related events.

Cargo Insurance


The purpose of most commercial trucking businesses is to carry and deliver cargo to various places around the country. From restaurants and grocery stores to retail stores and car lots, commercial trucks are needed for all types of cargo transportation. Unfortunately, accidents, delays, and mix-ups do happen occasionally, and if an unexpected event results in damage or loss of cargo, your business could be on the hook for the cost of the items. Cargo insurance covers the cargo in your trailer and protects your business from financial responsibility.

Aside from liability, physical damage, and cargo insurance, you might also be interested in specific coverage options such as hazmat insurance or on-hook insurance, depending on the nature of your company. It is crucial to get the right insurance for your commercial truck business to guarantee that you are protected. Similar to the factors that impact regular car insurance, your truck insurance will also be dependent on several things. You can contact a truck insurance professional for more specific advice about your situation.

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