Discover the average hot shot trucking insurance cost so that you can properly prepare your business's budget accordingly.
Or call (646) 759-0049 for advice and customised recommendations.
An essential must-have for any hot shot trucking business is insurance coverage. You need to ensure that your truck and equipment are covered in the event of an accident and that you aren't held responsible for any damage to cargo along the way.
To prepare your budget, you'll want to understand what hot shot trucking insurance costs and what factors will influence its price for your trucking business.
Based on the average insurance premiums taken from customer data over a two year period, the average monthly cost for hot shot trucking insurance coverage is $816. Here's a breakdown of the monthly hot shot trucking insurance cost by insurance type:
|Hot Shot Trucking Insurance Type||Cost per Month*|
|Primary Liability Insurance for Trucking||$434|
|Non-Trucking Liability Insurance||$45|
|Truck Cargo Insurance||$129|
|Physical Damage Insurance for Trucking||$208|
Disclaimer: These are average insurance premiums taken from customer data over a two year period and will vary depending on the cutomser’s business. They should not be taken as a definitive cost proposal.
Based on the average insurance premiums from customer data over a two year period, the average yearly cost for hot shot trucking insurance coverage is $9,800. Here's a breakdown of the yearly hot shot trucking insurance cost by insurance type:
|Hot Shot Strucking Insurance Type||Annual Cost*|
|Primary Liability Insurance for Trucking||$5,210|
|Non-Trucking Liability Insurance||$540|
|Truck Cargo Insurance||$1,546|
|Physical Damage Insurance for Trucking||$2,500|
*Disclaimer: These are average insurance premiums taken from customer data over a two year period and will vary depending on the customer’s business. They should not be taken as a definitive cost proposal."
Pro tip: One great tactic for reducing your annual insurance costs is to pre-pay your entire premium for the year. You'll end up paying less than if you opt for a pay-by-month insurance premium.
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What are the business-related factors that could affect my Hot Shot Trucking Insurance cost?
1. Number of Recent Claims
Most insurance providers will look at the most recent three years to see if you've filed any insurance claims. The more years you go without filing a claim, the cheaper your annual insurance premium will be.
2. Cargo Type
The types of loads that you haul can impact the price of your insurance premium. It's going to cost more to insure a company that hauls hazmat products than one that doesn't.
This is because it costs much more to clean up hazmat spills and accidents than average accidents.
3. Hauling Radius
Where you haul to and from will affect your insurance rates. Typically, a company that hauls in a limited area in its state or within its state borders will be cheaper to insure than a company that hauls over state lines.
The longer your haul radius is, the more expensive your insurance coverage will be.
4. Physical Operating Location
Where your operating location is geographically located will play a role in insurance premiums. Insurance rates vary widely from one side of the country to the next.
5. Employee Safety Training Programs
Providing more safety and training for your employees is a great way to help lower your insurance premiums.
OSHA has proven multiple studies that for every $1 invested in employee safety training, a business can save between $4 and $6 on the payout of damages from accidents.
The more proactive driving programs you require your employees to take, the more money your business can save in insurance premiums over the long run.
What are the truck-related factors that can affect my Hot Shot Trucking Insurance cost?
The price of your hot shot trucking insurance will vary depending on a number of different factors specific to your business and your location. These include:
1. Policy Limits and Deductibles
Two of the biggest factors that will determine the cost of your insurance coverage are your policy limits and your deductible amounts.
When choosing policy limits, you need to be extremely mindful of what your equipment is worth and what federal and state minimum requirements are for the class of trucks that you run.
The Federal Motor Carrier Safety Administration sets minimum required coverage limits for different types of trucking insurance. You must obtain these minimum limits in order to receive your trucking authority.
When it comes to your deductible, realize that the lower your deductible, the higher your insurance premium. It's best to opt for a deductible that you can comfortably afford to pay if anything happens.
2. Credit Score
Another factor that goes into determining your insurance price that many people are unaware of is their personal credit score.
Paying your bills on time and not carrying a large amount of debt is the key to keeping a high credit score.
On average, the higher your credit score, the lower your insurance payments are going to be.
3. Field Experience
The more years of trucking experience that your business has, the less expensive your insurance premium will be. Unfortunately, if your business and drivers are new, you can expect to pay much higher premiums for your insurance coverage.
4. Driving Record
Your driving record is going to play a big role in your insurance premium. If you have multiple moving violations, you may be denied insurance coverage or pay extravagant premiums. Compare that to a cleaning driving record, and you'll pay much less.
5. Truck Class
There are a total of eight classes of trucks in the United States. The higher the truck class, the heavier and bigger the truck is. You can expect your insurance to cost more the higher the classes of trucks that you run. This is due to the simple fact that accidents that happen with larger trucks are going to likely cause more damage than with smaller trucks.
6. Truck Condition and Age
Another factor that will play a very large role in determining your insurance premium is the condition and age of your trucks. Trucks in great condition are going to cost less to insure than trucks in not-so-great condition.
7. Truck Safety Features
When a truck is loaded full of safety features, it greatly reduces its risk of being involved in an accident. Additionally, it reduces the likelihood that a driver will be significantly injured.
Therefore, opting for newer trucks that have a plethora of safety feature is the best option for reducing trucking insurance costs. Some must-have safety features include:
How can I reduce the cost of my hot shot truck insurance costs?
If you're interested in obtaining insurance for your hot shot trucking fleet, then it's time to check in with an experienced CoverWallet agent today. They can assist you in finding the right coverages at the right cost to help keep your business active and protected.
What documents are required to get Hot Shot Truck Insurance?
Below are the most common documents you'll need before you can take out Hot Shot Truck Insurance:
1. Motor Carrier (MC) Number If you cross state lines, you'll need a Motor Carrier (MC) number and the limits of coverage required for us to file your MCS 90 (varies by state). To find out how to get your MC and DOT Numbers, check out the Trucking Authority 101 Guide.
2. MCS-150 and BOC-3 Filings MCS-150 and BOC-3 Filings are required especially if you have just started your operations. After December 12, 2015, MCS-150 forms can only be used to update a USDOT number; they cannot be used to register for an FMCSA account for the first time. New applicants are required to use the Unified Registration System (URS).
3. Commercial Drivers License Some states will require a Commercial Drivers License, which can also lead to lower insurance rates. This CDL & Weight Class Guide will point you in the right direction to get your Commercial Drivers License.
4. IRP Registration IRP (International Registration Plan) registration is needed to register your truck and get a PTI (Permanent Trailer Identification) for your trailer. You can apply for your IRP at your local state Federal Motor Carrier authority: Florida, Texas, Georgia, New Jersey, Marland, and Other States.
A CoverWallet agent will help you get the documents you need and will explain to you how to complete them. All free advice, with no obligation. Call (646) 844-9933.
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