Owner-operators face a range of insurance costs depending on the types of coverage needed and the specific limits chosen. According to Overdrive, the total annual cost for owner-operator trucking insurance can reach $20,000 or more, especially for those with a safe driving record. Some owner-operators may pay even more.
Key Insurance Coverages and Estimated Annual Costs
Several types of insurance are essential for owner-operators. Here's a breakdown of common coverages and their reported annual costs:
- Primary Liability Insurance: This coverage is crucial for any for-hire motor carrier. Overdrive reports that owner-operators can pay "$10,000 or more a year for $1 million in primary liability insurance." A for-hire carrier must maintain required liability insurance on file with FMCSA. If an insurer cancels this filing or it lapses, FMCSA can initiate a suspension of the carrier's operating authority.
- Physical Damage Coverage: This covers the truck and trailer. Overdrive estimates physical damage coverage at about $5,000 a year. The cost can depend on the age and value of the equipment, typically decreasing as the equipment ages.
- Cargo Coverage: This protects the freight being hauled. According to Overdrive, cargo coverage costs "$1,000 or more a year." Deductibles of $1,000 or $2,000 are typically available for this type of coverage.
- Non-Trucking Liability (NTL): Often referred to as bobtail insurance, non-trucking liability covers the truck when it is not under dispatch. Overdrive states that non-trucking liability can cost "$630 or more a year for $1 million worth." It's important to note that while "bobtail" is often used, it may not always be the exact same coverage as non-trucking liability.
Understanding FMCSA Requirements and Public Records
An MC number (docket number) is the operating authority granted by FMCSA to a for-hire motor carrier, while a USDOT number identifies a carrier for safety and registration records. FMCSA publishes carrier registration, authority, insurance-filing, and suspension-notice data as public records. This information is available on data.transportation.gov.
When a carrier receives a suspension notice, they typically have until a stated deadline to get a valid insurance filing recorded with FMCSA. If this deadline is missed, FMCSA may suspend or revoke the operating authority. Insurance agents, brokers, and shippers can check a carrier's authority and insurance-filing status for free using FMCSA public records.
TruckMorning assists insurance agents by converting FMCSA public records into a daily list of carriers that have experienced changes, such as new registrations, cancellations, renewals, or suspension warnings. TruckMorning is an independent service and is not affiliated with or endorsed by FMCSA or the US Department of Transportation.
Source: Overdrive