Guide to Owner-Operator Semitruck Insurance
Here’s what you need to know to get the coverages and paperwork necessary to roll legally, cut premium costs, and keep your trucking business profitable from day one.
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Written byBen Luthi
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Ben Luthi
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
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Edited byBecky Helzer
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
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Starting your own trucking business means taking on new responsibilities. Insurance is your first big hurdle. Whether you’re a new driver or a seasoned pro striking out on your own, getting proper owner-operator semitruck insurance can feel overwhelming.
On top of tight budgets and complex federal requirements, you may be dealing with a limited driving history under your own authority.
Here’s what you need to know about Federal Motor Carrier Safety Administration (FMCSA) insurance requirements, essential coverage options, and average premiums. We’ll also show how to get your filings completed quickly so you can start hauling loads legally and profitably.
Quick Facts
Owner-operators need liability coverage ranging from $750,000 to $5 million, depending on freight type and truck weight.[1]
Most insurers can complete federal filings electronically within 48 hours for qualified applicants.
First-year insurance rates typically decrease after a company establishes a clean safety record and compliance history.
What is owner-operator semitruck insurance?
Owner-operator insurance is a specialized bundle of policies designed to protect drivers who own and operate their commercial vehicles. This comprehensive coverage differs significantly from standard commercial auto insurance because you’re responsible for both business and operational risks.
When you run under your own operating authority, you need complete coverage for your trucking business. If you lease to a motor carrier, it typically provides primary liability coverage, leaving you responsible for physical damage insurance and other protections specific to your needs.
Owner-operator policies protect against three core risks:
Third-party liability: Covers property damage and bodily injury claims when you’re at fault in an accident
Truck and equipment damage: Protects your rig, trailer, and specialized equipment
Cargo loss: Covers the goods you’re hauling against damage; shippers often require this coverage
These policies combine multiple coverage types into one insurance policy. This makes it easier to meet federal requirements while protecting your trucking business from financial disaster.
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Best owner-operator semitruck insurance companies
Many traditional insurers avoid giving coverage to new authorities because of their limited compliance records and higher risk profiles.
We researched companies specializing in coverage for newer owner-operators. We also looked for insurers that offer competitive rates, fast federal filings, and industry-specific benefits.
Progressive Commercial: Best for fast federal filings
Progressive Commercial excels at getting new owner-operators on the road quickly through efficient electronic filing processes. Its specialized commercial trucking division understands FMCSA requirements and can typically complete filings within 48 hours.
The insurer offers a handful of coverage options and also provides discount opportunities through electronic logging devices and its fleet-management tools.[2]
Pros
Can complete necessary filings within 48 hours
Offers fleet-management tools to eligible businesses
Provides discounts through telematics
Cons
Offers fewer coverage options than specialized trucking insurers
Some quotes may require an agent
Doesn’t cover long-haul truckers, freight forwarders, or large fleets
OOIDA: Best for industry-specific perks
The Owner-Operator Independent Drivers Association provides insurance designed specifically for owner-operators.[3] The company offers robust coverage options and various benefits to support your business. In addition to group rates for life, disability, and health insurance, you can get exclusive discounts and rebates from more than 60 providers.
Pros
Wide range of standard and optional coverages
Strong understanding of owner-operator insurance needs
Access to additional OOIDA member benefits and advocacy
Cons
Must join OOIDA to access the best rates and coverage options
Doesn’t disclose any insurance-specific discounts
No clear filing timeline
biBerk: Best for online quotes and bundled savings
Backed by Berkshire Hathaway’s financial strength, biBerk offers a modern digital approach to commercial trucking insurance. The company’s online platform allows owner-operators to get quotes quickly, without lengthy phone consultations or in-person meetings.[4]
Since biBerk has several other types of business insurance coverage available, you may be able to bundle your policies and score significant savings.
Pros
Quick online quotes without lengthy phone calls
Lower rates through bundling coverages
Financial stability of Berkshire Hathaway
Cons
Offers few optional coverages
Available in only 20 states
Few available discounts
We researched commercial auto insurance companies, looking at availability, e-filing support, reputation, market share, and coverage options for new drivers. This research gave us the insight needed to identify the best semitruck insurance companies.
FMCSA insurance requirements for owner-operators
The Federal Motor Carrier Safety Administration sets minimum liability requirements ranging from $750,000 to $5 million based on your freight type and gross vehicle weight. You can’t activate your authority without meeting these coverage limits and completing required filings.
If you’re an owner-operator, your insurer must file a BMC-91X form (proof of minimum liability coverage) and provide MCS-90 endorsements (guaranteeing coverage meets federal standards).[5] Most insurers handle these federal filings electronically.
If you provide only intrastate transportation services, you won’t need federal filings, but you may need to meet certain state-specific requirements. Check your state’s department of transportation website for intrastate requirements, as some states have additional insurance rules or filing procedures.
Here’s a quick pre-operation checklist:
Obtain motor carrier (MC) and Department of Transportation (DOT) numbers.
Purchase required liability coverage.
Register with the Unified Carrier Registration (UCR).
Complete your BOC-3 filing.
Verify your active status on the Safety and Fitness Electronic Records (SAFER) website.
Keep proof of insurance on file.
How to file FMCSA and state paperwork
The right insurer and agent can file your paperwork in 48 hours or less. Many companies that specialize in trucking insurance offer expedited processing for qualified applicants.
That said, these are the general steps to take:
Apply for MC/DOT numbers through the FMCSA website.
Purchase primary liability coverage meeting federal minimums.
Ensure your insurance company files BMC-91X electronically with the FMCSA.
Complete UCR and BOC-3 filing.
Verify active authority on the SAFER database before hauling loads.
Important Information
Choose an insurer or agent experienced with trucking industry requirements. They’ll handle most filings automatically and guide you through any state-specific requirements for your operation.
Important coverages every owner-operator needs
Truck drivers face significant financial risks that go beyond basic liability coverage. Multiple types of insurance work together to protect both your business assets and personal finances from various operational hazards.
Coverage Type  | What’s Covered | Why It’s Important |
|---|---|---|
| Primary liability insurance | Property damage and bodily injury to others when you’re at fault | Federal requirement — protects you against potentially millions in liability claims |
| Physical damage | Collision coverage and comprehensive coverage for your truck and trailer | Often required by lenders — protects your largest business investment |
| Motor truck cargo | Damage to freight in your care, custody, and control | Required by most shippers — covers your legal liability for cargo loss |
| Non-trucking liability (bobtail) | Liability coverage for personal use when operating without a trailer | Fills gaps in primary coverage when not under dispatch |
| General liability | Slip-and-fall accidents and property damage at customer locations | Protects against premises liability and business operation risks |
| Occupational accident coverage | Medical expenses and income replacement for owner-operators | Alternative to workers’ compensation for independent contractors |
Optional and smart add-ons
Additional coverages make sense in certain scenarios. These include when you’re operating in high-risk environments, are hauling valuable cargo, or want extra protection against unexpected costs that could sideline your business.
These are some common optional coverages:
Uninsured motorist coverage: Protects you if a driver without adequate insurance hits you
Trailer interchange: Covers trailers you’re pulling under interchange agreements against damage
Downtime/rental reimbursement: Pays for substitute transportation while your truck is being repaired
Debris removal: Covers cleanup costs after accidents involving scattered cargo or fuel spills
Hazmat endorsement: Provides required coverage for transporting hazardous materials
How much owner-operator semitruck insurance costs
Industry sources show owner-operator semitruck insurance ranges between $2,000 and $22,000 annually.
Below is a breakdown of typical annual costs:
Liability coverage: $5,000–$18,000
Physical damage insurance: $1,000–$4,000, depending on truck value and deductible
Cargo insurance: $400–$3,000
First-year insurance rates often decrease after you establish clean compliance records and accumulate safe miles under your authority.
Factors that affect owner-operator semitruck insurance costs
As with personal auto insurance, commercial truck insurers consider multiple rating factors when setting premiums.[6] Understanding these factors can help you make informed decisions about your coverage and business operations.
USDOT age: New authorities pay higher rates until they’ve established operational history.
Radius of operation: Premiums are higher for long-haul drivers than for local routes due to greater risk.
Freight class: Hazmat and high-value cargo require higher premiums than general freight.
Driver experience: A clean commercial driving history significantly affects rates for both new and experienced drivers.
Truck value: Higher-value trucks are more expensive to insure for physical damage.
Deductible choice: Lower deductibles mean higher premiums. You can increase your deductibles to save money, but you’ll pay more out of pocket if you need to file a claim.
Business credit: Many insurers check credit scores when setting rates and payment terms.
You can potentially save money by keeping track of your ISS score and asking about telematics discounts for monitoring devices.
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How to save on owner-operator semitruck insurance
Just like with personal insurance, you can take specific steps to reduce commercial insurance costs without sacrificing necessary protection for your trucking business:
Raise your deductible
Higher deductibles significantly reduce premiums. But you should make sure that you can afford the deductible in the event of an accident.
Pay premiums annually
Most insurers offer discounts for paying up front instead of in monthly installments.
Join a truck association
Organizations like OOIDA provide member discounts and group insurance programs.
Install dash cams
Forward-facing cameras help defend against liability claims and may qualify you for discounts.
Enroll in safety telematics
GPS tracking systems demonstrate safe driving habits and reduce coverage costs.
Keep CSA scores low
Clean compliance records directly affect your insurance rates at renewal.
Bundle accident coverage
Adding occupational accident insurance often costs less than purchasing it separately.
Most underwriters revisit rates after the first year if you maintain clean inspection records.
Owner-operator semitruck insurance FAQs
See below for answers to frequently asked questions about semitruck insurance requirements and costs for independent owner-operators.
What is the monthly insurance on a semitruck?
Monthly semitruck insurance typically ranges from $167 to $1,833, depending on coverage types, truck value, cargo type, and your driving history.
What type of insurance do you need for a semitruck?
You typically need primary liability coverage, physical damage insurance, and cargo insurance. In some instances, you may also need non-trucking liability, occupational accident coverage, and downtime or rental reimbursement coverage, among other forms of coverage.
If you lease your truck out, who pays for insurance on it?
When leasing your truck to another driver, you typically maintain physical damage insurance while the lessee provides their own liability coverage.
What are insurance premiums like for brand-new drivers?
New commercial drivers tend to pay higher premiums until they establish clean driving and compliance records.
Sources
- U.S. Department of Transportation Federal Motor Carrier Safety Administration. "Proof of Insurance."
- Progressive Commerical. "Truck Insurance."
- OOIDA. "Truck Insurance Truck Insurance for the small-business owner-operator.."
- biBerk. "Commercial Auto Insurance."
- Federal Motor Carrier Safety Administration. "Insurance Filing Requirements."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
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Ben Luthi
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
