Why is commercial truck insurance so expensive?

“The maximum gross vehicle weight shall be 80,000 pounds except where lower gross vehicle weight is dictated by the bridge formula.”

“A large truck as defined in this fact sheet is any medium or heavy truck, excluding buses and motor homes, with a gross vehicle weight rating (GVWR) greater than 10,000 lb.”

“In 2024 large trucks accounted for 9 percent of all vehicles in fatal traffic crashes and 5 percent of all vehicles in injury and property-damage-only traffic crashes. Large trucks accounted for 5 percent of all registered vehicles and 10 percent of the total vehicle miles traveled (VMT) in 2024.”

“70 percent (3,753) were occupants of other vehicles; 17 percent (920) were occupants of large trucks; and 12 percent (667) were nonoccupants (pedestrians, pedalcyclists, or other nonoccupants).”

“72 percent (116,475) were occupants of other vehicles;”

“Utah 5 5 10 35 4 39 49”

“Table 1 shows a majority (69%) of the large trucks in fatal traffic crashes were heavy trucks in 2024 (GVWR > 26,000 lb).”

“2024 1,618 31% 3,578 69% 22 0% 5,218 100%”

“Nationwide, 9.3 percent of all vehicles in fatal traffic crashes were large trucks.”

“it generally costs more to cover a heavy semi truck than a lighter pickup truck carrying the same product because the semi truck can cause more damage in an accident.”

“a policy issued or renewed on or after January 1, 2025, containing motor vehicle liability coverage may not limit the insurer's liability under that coverage below the following:”

“$90,000 in any one accident whether arising from bodily injury to or the death of others, or from destruction of, or damage to, the property of others.”

“For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000”

“Minimum $1 million auto liability insurance Minimum $100,000 cargo insurance policy”

“Generally, the more coverage you need, the more your trucking insurance will cost.”

“Commercial truck insurance rates vary by state. You can sometimes expect to pay more if you operate in locations with heavy traffic, roadwork, and accidents.”

“Commercial auto struggles with a combined ratio that has been consistently over 100% despite rate increases.”

“A combined ratio less than 100 percent indicates that premiums covered losses and expenses in a given period (i.e., underwriting operations made a positive contribution to net income).”

“Meanwhile, commercial automobile claims continue to increase in frequency and severity, with higher repair costs, a shortage of experienced drivers, a proliferation of distracted driver issues, and verdict and settlement inflation.”

“From 2021 to 2024, liability insurance premium costs rose by 18.6 percent to 10.2 cents per mile – outpacing consumer inflation by 5.4 percentage points – at the same time that heavy-duty truck-involved crash rates fell by 2.6 percent industry-wide.”

“The research confirms that a sharp rise in crash claims expenses fueled this rise in insurance costs: among respondents, per-mile liability losses rose by an average of 33.1 percent over the same period.”

“Premium costs for excess coverage in particular rose at an even higher rate. From 2021 to 2024, per-mile premium costs for the $5-10 million insurance layer rose by 34 percent to 1.58 cents, and per-mile premium costs for the $10-15 million layer rose by 45 percent to 1.05 cents. These increases in excess coverage expenses point to the role of rampant litigation in inflating claims costs.”

“ATRI’s research is partially based on a newly created trucking litigation database that provides detailed information on 600 cases between 2006 and 2019. In the first five years of the data, there were 26 cases over $1 million, and in the last five years of the data, there were nearly 300 cases.”

“the research documents that from 2010 to 2018, the size of verdict awards grew 51.7 percent annually at the same time that standard inflation grew 1.7 percent and healthcare costs grew 2.9 percent.”

“These trends increase the likelihood of nuclear verdicts, which tend to pierce the limits of underlying primary coverages, triggering claims on excess and umbrella coverages that attach above them. These verdicts have been mainly concentrated in product liability cases, as well as intellectual property and motor vehicle cases.”

“For example, a semi truck driver who travels regionally will usually pay more for insurance than a driver whose routes are local.”

“physical damage coverage is usually required for trucks with an outstanding loan or lease.”

“The industry’s average cost of operating a truck in 2024 was $2.260 per mile, a 0.4 percent decline compared with the previous year.”

“The national average monthly commercial truck insurance cost with Progressive Commercial ranged from $734 for specialty truckers to $926 for transport truckers.”

“Bigger trucks usually come with higher insurance costs since they're typically more expensive to replace, carry more valuable cargo, and have increased liability.”

“Accidents and violations impact commercial truck insurance premiums more than typical auto policies because large, heavy vehicles can cause more damage. Even a minor speeding ticket on a trucker's driving history can significantly increase your rate.”

“Leasing to a company is usually cheaper than working under your own authority because it can help with:”

“Owner operators with their own USDOT authority take on full responsibility for accidents, violations, and cargo claims.”