If you’re a trucker or run a trucking business, you’ve probably wondered: Why does truck insurance cost what it does? The truth is, commercial trucking insurance rates are affected by a wide range of factors — from your zip code to your driving record. At Logrock, we make truck insurance easy by helping you understand exactly what goes into your premium so you can make smart decisions on the road and in your business.
Whether you’re just starting your authority or you’ve been in the game for years, here’s everything that affects the cost of your truck insurance.
1. Your Home State and Business Location
Insurance carriers base their starting rates on your business’s home state, including its zip code and regulatory environment. If you’re set up in a state different from where you’re licensed or live, you might face higher rates or delays.
✅ Pro tip: Keep your licensing, residence, business registration, and insurance all in the same state to avoid complications and reduce risk.
2. Your Credit Score (Yes, It Matters!)
The credit score of the business owner or responsible party can significantly impact premiums. A strong credit scoremeans:
- Lower down payments
- Longer payment options
- More competitive rates
Trying to “game the system” by adding someone with good credit (like grandma) to your LLC? Don’t. It could be seen as material misrepresentation, and it’s not worth the risk.
3. Your Vehicle’s Age, Type & Value
Not all trucks are rated equally. Insurers consider:
- Year of the truck: Newer trucks cost more to insure.
- Truck value: A $100K rig will cost more than a $25K one.
- Vehicle weight class: Heavier trucks (like semis) usually cost more than box trucks or lighter vehicles.
4. Driver Factors: Age, Record & Licensing State
Here’s what insurers look at:
- Driver age: Younger drivers (especially under 23) often pay more. Discounts start around age 35.
- Driving record: Accidents, violations, and claims within the last 3–5 years will raise rates.
- License state: If your driver is licensed in a different state from your business, expect a surcharge.
- Owner-driver status: If the owner isn’t listed as a driver, insurance costs can rise.
5. Where Your Truck is Parked (Garaging Address)
Where your truck sleeps at night matters. Even if it’s parked a few miles away in a different zip code, the rate can change.
- Garaging address should ideally match your business and policy state.
- Out-of-state garaging often increases rates.
6. Coverages and Policy Limits
The more coverage you add, the more your premium will cost.
Standard limits:
- $1,000,000 in auto liability
- $100,000 in cargo insurance
Starting with liability-only and adding cargo later can save money when you’re just getting your MC authority. But remember, more coverage = more cost.
7. Deductibles
Want a lower premium? Raise your deductibles.
Example:
- $500 deductible = higher premium
- $2,500 deductible = lower premium
This is especially true for collision and comprehensive coverage on your truck.
8. Prior Insurance History
Insurance carriers reward consistency.
If you already have:
- Personal auto insurance
- Previous commercial trucking insurance
You could be eligible for a discount. If not, expect higher rates, especially with companies like Progressive.
9. ELD Discounts
Some carriers offer up to 20% off your premium for using ELDs (Electronic Logging Devices). For new ventures, it’s typically a 5% discount, but that adds up quickly.
💡 Make sure to ask your agent about the ELD discount — not all include it automatically.
Final Thoughts
At Logrock, we believe in making truck insurance simple, transparent, and built for truckers like you. Knowing what impacts your rates gives you the power to make better choices for your business.
Whether you’re just getting started or looking to save more on your renewal, we’re here to help you navigate the road ahead.
Need help finding the best rate?
📲 Start your quote today with Logrock — the fastest, easiest way to get covered.
