Owner Operator Insurance Cost
Owner operator insurance costs vary widely based on the age of the driver, cargo carried, driving record, credit, route, and other factors. Basic coverage, which includes liability, starts at $5K per year, while physical damage coverage costs more than $2K. However, there are ways to reduce the cost and still maintain coverage. For example, you can get a discount by paying a down payment instead of the entire premium.
Non-trucking liability insurance pays for bodily injury and property damage incurred while not under dispatch. Occupational accident coverage may be required by motor carriers. This covers medical expenses and accidental death, as well as disability. Owner operators who are new to the business should start out with lower insurance rates in order to earn their insurance provider’s trust and provide the necessary information. However, new owners may need to negotiate their own rates, which can be quite expensive.
The amount of owner operator insurance varies depending on the type of freight hauled, motor carrier classification, and operating authority. However, most owner operators pay around $9,000 to $12,000 annually for one truck, which meets the minimum insurance requirements mandated by the FMCSA. Insurers usually charge more for specialty freight and less for common household goods, but if you plan on carrying both types of goods, consider working with an insurance agent who provides all types of insurance in one premium.
How Much Is Owner Operator Insurance?
Owner operator insurance is expensive for semi-truck drivers. A new semi-truck may cost $70,000 to $150,000, and with upgrades, could cost up to $160,000. Trailers can cost another $15000 to $50,000, and insurance companies would have to replace them if the semi-truck was a total loss. Fortunately, the cost of Owner operator insurance is low compared to the cost of a semi-truck.
One of the main things to remember when shopping for insurance is the deductible amount. Generally, the higher the deductible, the cheaper the premiums will be. It is best to pay this amount in one lump sum instead of monthly. Some companies offer discounts for paying in advance, so make sure to check these options before you choose an insurance company. In addition, some insurers charge service fees for paper statements or monthly payments.
Regardless of what type of Independent Owner Operator Insurance you choose, you’ll want to know that you’ll have 24/7 claims service. The sooner you contact an insurance company, the faster the claim can be resolved. The faster you can get back on the road, the better! You’ll also be protected from financial losses caused by collisions and other accidents. This type of insurance can cost $8,000 to $14,000, but if you don’t compare prices, it could end up costing you more money in the long run.