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What’s the Cheapest State for Commercial Truck Insurance?

Truck insurance is the best way to ensure that your business is protected and can operate free of worry. It can be fairly dangerous for truck drivers these days as accidents and cargo thefts become more prevalent. However, commercial truck insurance is not cheap by any means. This expense can cost truckers tens of thousands of dollars in some cases.

Thus, fleet owners and independent drivers need to weigh their options when purchasing truck insurance.

Your business’s location plays a major factor in the rates you’ll be paying yearly. Therefore, in this article, we’ll discuss the cheapest states for commercial truck insurance and ways to manage this expense. Let’s get started.

What’s the Cheapest State for Commercial Truck Insurance?

There are over 50 states in the US and each has its specifications when it comes to the cost of truck insurance. When you operate a fleet it’s crucial to keep costs down; therefore, we’ve done some research to determine the cheapest state for commercial truck insurance.

First, let’s quickly go over the states that are known for having the highest truck insurance premiums. The 5 states with the most expensive truck insurance on average are:

  • Connecticut
  • Delaware
  • Louisiana
  • New Jersey
  • New York

Similarly, we’ve studied the states with the most affordable truck insurance. According to our analysis, Mississippi is the cheapest option when comparing the average earnings to the average premium cost.

Here’s a breakdown:

LocationAverage Local Premium RateAverage National Premium Rate
Mississippi$3,552$4,664

Your trucking company’s location has a huge impact on your overall income and expenses. So, your best option is a state with notably higher incomes and lower premiums.

One may assume that the difference in overall price may not be significant enough to affect the state they choose to operate in. However, that isn’t necessarily the case. Premium costs can reach as high as $23,000 a year in some states.

Therefore, choosing the state you operate out of is a crucial decision that can impact your fleet’s overall success in the long run. For example, Nebraska has one of the highest incomes for trucking professionals, paying nearly $90,000 a year. Simultaneously, it’s the sixth cheapest state when it comes to truck insurance premiums. Thus, fleet owners can make more money and pay less for insurance than others.

Some other states with similar circumstances include:

  • Iowa
  • New Mexico
  • Oklahoma
  • Pennsylvania
  • Wyoming

Additionally, Arizona has some of the lowest wages for truckers with some earning on average $35,000 annually. Thus, the insurance costs in Arizona may be lower; however, it may be difficult for some truckers in Arizona to earn a good income.

What Affects the Cost of Truck Insurance?

As I’m sure you know by now, various factors can affect the cost of commercial truck insurance. You’ll want to be aware of these factors if you’re looking to decrease your trucking company’s expenses.

Every state weighs the following determinants differently. However, this list should give you a good idea of what can typically affect your rates:

  • The age and experience of your drivers
  • The type of cargo you haul
  • Your credit score
  • Discounts
  • Hauling radius
  • Size of fleet
  • State
  • Years in business
  • Violations 

Fleet owners should keep these factors in mind when determining the cost of running a trucking business.

Summing Up

We understand how costly it is to run a fleet; therefore, we want to help. Feel free to contact us or fill out our online form to receive three competitive quotes. Work with an agent that understands the trucking industry.

 

 

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