Owner Operator Truck Insurance Cost Statistics for 2026

Insurance is one of the highest fixed costs in trucking, and it keeps climbing. Whether you run under your own authority or lease onto a carrier, understanding commercial truck insurance cost statistics can help you budget smarter and protect your trucking business.

On average, owner operators with independent authority pay between $9,000 and $17,000 per year for commercial truck insurance. Leased operators pay less, typically $3,000 to $5,000 annually. But the real numbers depend on your coverage types, location, driving record, and what you haul.

This guide breaks down current truck insurance rates, what drives those costs, and how to lower premiums without sacrificing the coverage your business needs.

Key Takeaways

• Owner operators running commercial trucks under their own authority pay an average of $900–$1,800/month for commercial truck insurance, while leased operators pay $250–$500/month
• Insurance costs hit a record high of $0.102 per mile in 2024, making up roughly 10% of total operating costs according to ATRI
• Nuclear verdicts (jury awards exceeding $10 million) surged 52% in 2024, which is the primary driver behind higher premiums across the trucking industry
• New authority operators typically pay 40–100% more than established carriers, but truck insurance rates drop significantly after 3 years of clean operation
• Controlling fuel costs with tools like the AtoB fuel card frees up cash flow to cover insurance costs and other fixed expenses

Insurance Costs for Commercial Trucks

Commercial truck insurance cost varies widely depending on how your business operates. The two biggest factors are whether you hold your authority as an independent carrier and what coverage types you carry.

Here is a breakdown of average annual cost ranges for owner operators in 2026:

The gap between independent authority holders and leased operators comes down to who carries primary liability. When you operate commercial trucks under your authority, you're responsible for all insurance costs. When leased on, the motor carrier typically covers liability and cargo insurance, so you only need non-trucking liability, collision and damage protection, and possibly occupational accident coverage.

Most owner operators carry $1 million in liability coverage, even though the FMCSA minimum is $750,000. That is because many shippers and brokers require $1 million before they will assign loads. Higher coverage limits provide better financial protection and open up more freight opportunities.

Commercial Truck Insurance Rates by Coverage Type

Each coverage type has its own cost range. When budgeting for commercial truck insurance, it helps to understand what you are paying for each layer of protection on your commercial trucks.

Liability Insurance The most expensive coverage for commercial trucks. Covers bodily injury, medical expenses, legal fees, and property damage when you are at fault in an accident.

• FMCSA minimum: $750,000 for general freight
• Hazardous materials minimum: $5 million

General Liability Insurance Protects your trucking business from claims unrelated to driving, like slip and fall accidents at a loading dock or property damage at a customer's facility.

• Cost: $500–$800/year
• General liability limits typically start at $1 million per occurrence with a $2 million aggregate

Motor Truck Cargo Insurance Covers the goods you are hauling. Most brokers require at least $100,000 in cargo insurance before they will book loads with you. If you haul high value goods like electronics or pharmaceuticals, you will need higher coverage limits, which increases your rates.

Bobtail Insurance vs. Non Trucking Liability Both cover you when you are not hauling a load, but they work differently:

• Bobtail insurance – Covers you when driving your commercial truck without a trailer, regardless of dispatch status
• Non trucking liability – Covers personal use of your truck when you are not under dispatch

Many owner operators carry both for complete protection.

Physical Damage Coverage Protects commercial trucks against collision, theft risk, vandalism, fire, and weather-related damage.

• Cost: 2–3% of your truck value per year
• Required if you are financing your truck
• Even if your truck is paid off, most owner operators keep collision and damage protection because replacing a $100,000+ commercial truck with out of pocket costs alone would be financially devastating

How Commercial Truck Insurance Is Calculated

Driver History and Experience

Your driving record is one of the strongest factors in determining truck insurance cost. Clean MVR (Motor Vehicle Report) records with no accidents, violations, or speeding tickets translate directly to lower premiums. Insurance companies also look at your CSA (Compliance, Safety, Accountability) scores, which track safety performance for commercial trucks.

CDL experience matters significantly. Truck drivers with less than 2 years of experience face higher premiums because they represent increased risk. Carriers often do not write policies for owner-operators with less than 2 years of experience driving commercial trucks.

Credit history also plays a role that many owner operators do not expect. Better credit scores correlate with lower insurance rates, just like personal auto insurance.

Vehicle Size, Age, and Truck Value

Larger commercial trucks cost more to insure than smaller units because they carry an increased risk of severe damage in accidents. A fully loaded semi truck at 80,000 pounds can cause far more bodily injury and property damage than a light-duty vehicle.

Your truck value directly affects damage coverage costs. A newer commercial truck worth $150,000 costs more to insure than an older model worth $40,000 because the insurance company faces a higher payout in a total loss. Equipment value is a core part of the calculation. However, commercial trucks newer than 10 years with advanced safety features such as collision-avoidance systems and dashcams may qualify for discounts of 5–15%.

Elevated repair costs also affect rates for commercial trucks. The average cost of parts and labor has risen steadily, making claims more expensive for insurance companies to settle. This gets passed on to you through higher premiums.

Freight Type and Cargo Classification

The type of freight you haul is one of the biggest factors in truck insurance rates. General freight carriers typically pay less than those hauling hazardous materials, refrigerated goods, or oversized loads.

A critical detail many owner operators miss: even occasionally hauling vehicles can push you into a "car carrier" classification with dramatically higher rates. According to experienced operators on trucking forums, mentioning car hauling even once during the quote process can nearly double your premium. Stick to standard commodity hauling in your first year if you want to keep truck insurance cost manageable.

Hauling to oil fields also requires separate coverage at a significantly higher cost.

Location and Operating Radius

Where your business operates makes a massive difference in commercial truck insurance cost. Insurance rates can swing more than 240% between states. According to a 2025 MoneyGeek analysis, truck drivers in New York pay an average of $666 per month for $1 million liability, while drivers in Maine pay just $275 per month.

States with high traffic density and aggressive litigation environments, like New Jersey, Florida, and California, consistently have higher premiums for commercial trucks. Urban areas add 15–25% to rates compared to rural routes within the same state.

Your operating radius also affects your rate. Running unlimited mileage across all 48 states costs significantly more than a 500-mile regional radius. Some owner-operators default to unlimited coverage when they only need regional, which unnecessarily inflates insurance costs.

The New Authority Premium Penalty

If you are a new owner-operator getting your own authority for the first time, expect to pay a "new authority tax" on your rates. New authorities are considered higher risk because they lack an established safety record.

First-year costs for new authorities typically run $12,000–$20,000+, compared to $8,000–$14,000 for established operators. Here is the typical trajectory:

• Year 1: Highest rates. Limited carrier options (Progressive and OOIDA are often the only choices)
• Year 2: Modest decrease if you have clean inspections and no claims. Some carriers like Great West will begin quoting you
• Year 3+: Significant drop as you develop a positive Experience Modification rating. Multiple carriers compete for your business

One important detail from experienced owner operators: your insurance history follows the policy age, not the MC number age. If you switch insurance companies after year 1, you may restart the clock on your experience rating. Choose your first insurer carefully and plan to stay for at least 3 years.

Why Truck Insurance Rates Keep Rising

Rates for insuring commercial trucks across the trucking industry have been climbing for years. ATRI's 2025 Operational Costs of Trucking report found that insurance premiums hit a record $0.102 per mile in 2024. That followed a 12.5% spike in 2023 and an additional 3.0% increase in 2024.

Several factors drive these increases.

Nuclear Verdicts Are Reshaping Insurance Costs

The single biggest factor behind rising commercial truck insurance costs is the explosion of "nuclear verdicts," jury awards exceeding $10 million in personal injury and wrongful death lawsuits involving commercial trucks.

In 2024, there were 135 nuclear verdicts against corporations, a 52% increase over 2023, totaling $31.3 billion, a 116% increase from the previous year (Marathon Strategies). The median nuclear verdict climbed to $51 million in 2024, up from $44 million in 2023 and just $21 million in 2020.

"Thermonuclear verdicts" exceeding $100 million jumped to 49 cases in 2024, up from 27 in 2023. Trucking is one of the hardest-hit industries. In 2024, a St. Louis jury delivered a $462 million verdict in a trucking accident case involving a trailer manufacturer.

These massive awards force insurance companies to raise insurance premiums across the board, even for safe carriers. As ATRI's Dan Murray noted, a safe carrier in 2022 "would be happy to discover their insurance rates only went up 15%."

Social Inflation and Litigation Funding

Beyond nuclear verdicts, "social inflation" is driving insurance costs higher. According to Swiss Re, social inflation in the U.S. hit 7% in 2023, a 20-year high. Average personal injury compensation awarded by juries increased approximately 250% between 2009 and 2019.

Third-party litigation funding, where outside investors bankroll lawsuits in exchange for a share of the settlement, has removed financial barriers for plaintiffs. This means more lawsuits, longer legal battles, and larger awards, all of which increase the costs that get passed to operators of commercial trucks.

Proposed FMCSA Minimum Increase to $2 Million

The current FMCSA liability requirement of $750,000 has not been updated in decades. A proposed federal increase to $2 million could significantly raise insurance premiums for owner operators, particularly smaller operations that currently carry $750,000 to $1 million in coverage.

While the timeline remains uncertain, most industry experts believe an increase is inevitable. Owner operators are already carrying higher liability limits of $1–$2 million to meet broker requirements and provide adequate insurance against today's legal environment. Maintaining higher liability limits gives carriers more options for booking freight, but it comes at a steeper annual premium.

The Total Cost Picture

To understand how insurance fits into the bigger picture, consider ATRI's 2024 data on total operating costs of $2.260 per mile for commercial trucks:

With the truckload sector running an average operating margin of -2.3% in 2024, every dollar counts. Insurance may be a smaller slice of the pie than fuel or labor, but it is one of the fastest-growing line items and a cost that affects your commercial truck whether it is running or parked.

How to Save Money on Truck Insurance

Lowering your insurance costs requires a combination of risk reduction, smart shopping, and strategic business operations. Here are the approaches recommended by experienced owner-operators and insurance professionals.

Maintain a Clean Safety Record

This is the most effective way to reduce premiums over time. A clean driving record, strong CSA scores, and zero claims build your Experience Modification rating, which directly reduces your truck insurance cost.

Get regular inspections documented. One Progressive policyholder on TruckersReport reported rates dropping from $13,000 to $8,500 after just 4 months with 2 clean inspections and no claims.

Invest in safety technology such as dashcams, collision-avoidance systems, and GPS tracking. Safety technology and advanced safety features can earn 5–15% discounts from carriers that insure commercial trucks, and the documentation they provide strengthens your position during claims and policy renewals. Safety programs that train truck drivers on defensive techniques also help.

Shop Multiple Carriers and Use Specialized Agents

Insurance rates can vary by thousands of dollars for identical coverage on the same commercial trucks. Always get quotes from at least 3 carriers, and use agents who specialize in trucking insurance rather than general commercial insurance agents.

Start shopping 60 days before your renewal. This gives you leverage to negotiate and avoids the last-minute desperation that leads to overpaying. After your first 2–3 years, carriers like Great West, Northland, and National Indemnity become available in addition to Progressive and OOIDA.

Be aware that some brokers refuse to work with carriers who have Progressive insurance. While Progressive is often the cheapest option for new authorities, it can limit your load opportunities. Factor this into your decision when comparing multiple carriers.

Optimize Your Coverage Structure

• Choose higher deductibles strategically. Moving from a $1,000 to a $2,500 deductible can reduce collision and damage costs by 15–25%. Higher deductibles make sense when you have adequate reserves to cover out-of-pocket costs. Owner operators who carry higher deductibles on physical damage coverage typically save $500–$1,500 annually on their commercial truck insurance.
• Right-size your operating radius. Do not pay for unlimited mileage if you run regional routes. The difference between a 500-mile radius and unlimited can be thousands of dollars per year.
• Pay your annual premium in full. Monthly installments typically cost 15–25% more than a lump-sum payment. On a $15,000 policy, monthly installments add $2,250–$3,750 in financing costs. Even splitting into quarterly or monthly payments is better than full monthly installments for reducing the financing surcharge.
• Bundle coverage types. Purchasing general liability insurance alongside liability coverage from the same carrier often qualifies for a bundling discount.
• Skip unnecessary add-ons. Review your comprehensive coverage and additional coverage options carefully. If your commercial truck is paid off and older, you may not need full damage protection.

Reduce Your Overall Operating Costs

Insurance is a fixed cost you cannot avoid. But fuel, the highest variable cost for most owner operators, is one you can control. Reducing fuel expenses frees up cash flow to comfortably cover insurance premiums and other fixed costs.

An owner operator running 100,000 miles per year and saving $0.50 per gallon on 15,000 gallons of diesel puts $7,500 back in their pocket annually. That nearly covers half the annual premium for a carrier with independent authority.

The AtoB fuel card helps owner operators save an average of $0.45–$2.00 per gallon on diesel at over 3,500 truck stops and 30,000+ gas stations nationwide. With 99% acceptance, there are no out-of-network fees eating into your savings. Those fuel savings can offset the burden of rising insurance costs for commercial trucks.

AtoB also provides expense tracking, IFTA reporting, and spend controls that help you maintain cleaner financial records, which can strengthen your position when insurance companies evaluate your business during underwriting.

What Coverage Types Do Owner Operators Need?

The right insurance package depends on your operating structure, but here are the essential coverages every owner-operator should understand.

Required Coverage for Independent Authority

If you hold your authority, you need liability insurance at a minimum of $750,000 (FMCSA requirement) or $1 million (required by most shippers and brokers). You also need motor truck cargo insurance, typically with a minimum of $100,000. The FMCSA will not activate your authority without proof of adequate insurance on file via BMC-91 or BMC-91X forms.

Physical damage coverage is not legally required, but it is mandatory if you are financing your commercial truck. Even with a paid-off truck, most owner-operators keep it because replacing a commercial truck after a total loss would be financially devastating.

General liability insurance covers non-driving business risks. At $500–$800/year, it provides financial protection against claims arising from slip-and-fall accidents at customer facilities, advertising injuries, and other non-trucking incidents. Medical costs from these claims can escalate quickly, which is why general liability is considered an essential coverage.

Required Coverage for Leased Operators

When leased to a carrier, your liability and cargo insurance are typically covered under the carrier's policy. You need non-trucking liability insurance for personal use of your truck when not under dispatch, and damage coverage to protect your equipment.

Occupational accident insurance is strongly recommended for leased operators. As an independent contractor, you are not covered by the carrier's workers' compensation. Medical expenses from a work-related injury can be catastrophic without this specialized coverage. Medical costs for serious trucking injuries routinely exceed $100,000.

Additional Coverage to Consider

• Uninsured/underinsured motorist coverage protects you if another driver who lacks adequate insurance hits your commercial truck. This is relatively inexpensive ($50–$100/year) and covers a real gap.
• Downtime coverage provides income replacement when your truck is out of commission due to a covered loss.
• Rental reimbursement pays for a replacement truck while yours is being repaired.
• Trailer interchange coverage protects non-owned trailers in your possession under a trailer interchange agreement.

Higher coverage limits are increasingly important given the nuclear verdict environment. Owner-operators are adding umbrella policies ($500–$700/year) to provide an additional layer of financial protection beyond their liability limits. Increased risk from distracted driving lawsuits and social inflation makes additional coverage a smart investment for anyone operating commercial trucks today.

FAQs

Do owner-operators with bad credit pay more for truck insurance?

Yes. Credit history is a factor that insurance companies use when setting commercial truck insurance rates. Owner-operators with lower credit scores typically face higher premiums because insurers view poor credit as correlated with a higher risk of claims and payment issues.

However, credit is just one of many factors. A strong driving record, multiple years of CDL experience, and a clean claims history can offset the impact of less-than-perfect credit. Owner-operators have improved their credit over time using tools like the AtoB fuel card, which reports to business credit bureaus, helping build a stronger financial profile that can lead to lower premiums at renewal.

What is the FMCSA minimum liability coverage requirement?

The FMCSA requires liability coverage for all interstate motor carriers operating commercial trucks based on the type of cargo and vehicle:

These are federal minimums. States may set higher limits for intrastate operations. And in practice, most shippers and brokers require $1 million in liability coverage regardless of cargo type. Higher liability limits are becoming the industry standard rather than the exception.

A proposed increase from $750,000 to $2 million has been under discussion for years. While not yet enacted, this change would dramatically increase insurance costs for smaller operations currently carrying the minimum.

How does truck insurance compare to other operating costs?

For perspective, here is how truck insurance stacks up against other major expenses in a typical owner-operator's budget based on ATRI's 2024 data:

Fuel remains the single largest controllable expense at $0.481 per mile. Insurance premiums at $0.102 per mile are smaller but rising faster than most other line items. Between 2019 and 2024, the cost of insuring commercial trucks grew at a rate that outpaced general inflation.

The key insight: you cannot avoid insurance costs, but you can reduce fuel costs to create breathing room in your budget. An operator who saves $0.10 per gallon on fuel through discount programs effectively offsets the entire increase in insurance costs over the past two years.

AtoB: Offset Rising Insurance Costs with Fuel Savings

You cannot control nuclear verdicts or litigation trends. You cannot change the FMCSA requirements. But you can control how much you spend on fuel, and that is where AtoB makes a real difference.

With average diesel savings of $0.45–$2.00 per gallon across over 3,500 truck stops, AtoB helps owner-operators put real money back toward truck payments, insurance, and other fixed costs. There are no transaction fees, no out-of-network penalties, and no personal guarantee required for credit.

Beyond fuel savings, AtoB provides:

• $250,000 fraud protection to prevent fuel theft from draining your budget
• IFTA reporting that saves time and money on tax filings
• Expense tracking for cleaner financial records during insurance underwriting
• Driver payroll with early pay access to help manage cash flow during slow periods
• Split In Four buy-now-pay-later for smoothing out large expenses

Apply for the AtoB fuel card today and start putting more money back in your pocket, because every dollar you save on fuel is a dollar you can put toward protecting your business.

Citations:

• https://truckingresearch.org/2025/07/
• https://www.insurancejournal.com/news/international/2024/09/11/792372.htm
• https://www.fmcsa.dot.gov/registration/insurance-filing-requirements
• https://www.moneygeek.com/insurance/business/commercial-auto/truck/cost/