How Much is Commercial Truck Insurance Cost in Canada

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If you drive a truck for a living, you must understand the legalities and obtain proper insurance coverage. The rates will be greater than for a car, but the risks of driving this vehicle will also be higher. As a result, you will need to know the truck insurance costs and prices before getting coverage.

If you’re looking for information on how much commercial truck insurance costs in Canada, this is the right place. We’re here to assist small, medium, and large enterprises with their commercial truck insurance needs. Whatever number of trucks you have, you’ll get the most excellent advice, service, and solutions available in the Canadian market.

What Is Commercial Truck Insurance?

Commercial truck insurance is a collection of particular car insurance plans created to meet the needs of trucking companies. Your trucks are covered by standard commercial truck insurance plans in the case of an accident. The majority of damages from various risks are covered by collision and comprehensive coverage.

Options for specialized commercial truck insurance for your business include protection from extra risks and particular liability concerns. As you transport costly or time-sensitive items across the nation, protect your investment by adding coverage for your shipment with an affordable supplement.

You can extend your policy to include non-trucking alternatives after basic and specialist coverage. To guard against accidents that may occur when a truck isn’t carrying goods, think about non-trucking liability coverage. For instance, occupational accident coverage protects your drivers in the case of unintentional death or disability.

What Do I Need to Know About Commercial Truck Insurance in Canada?

Many people who are trying to sell you insurance would like you to think that all insurance products are the same. This is not true. However, if your business relies on vehicles to make money, commercial truck insurance needs to be made to fit your needs. There are many questions about how much commercial truck insurance costs in Canada, and our experts can help you answer them. They can also help you with any other questions you have about insurance for your truck.

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5 Types of Commercial Truck Insurance in Canada

If you are looking for commercial trucking insurance, there are several different types. We have compiled 5 types of truck insurance Alberta for you to look into.

Primary liability insurance

The first type of insurance is primary liability insurance. It will cost you between $5000 and $7000. You will get coverage of any damages you may do while driving with this amount.

General liability insurance

The second sort of insurance is general liability insurance, which costs $500-$600 per year and covers anything not covered by your primary liability or physical damage policy. These are some of them:

  • Any extra injuries sustained as a result of the accident
  • As a result of the accident, there was property damage

Physical damage insurance

The third sort of insurance you require is physical damage insurance, which ranges from $1000 to $3000. This will cover any damage to your car caused by theft, vandalism, collision, or bad weather.

Occupational accident coverage

Occupational accident coverage ranges from $1600 to $2200. It pays out for compensation connected to work-related injuries, such as medical bills and lost wages.

Umbrella policy

You might also think about getting an umbrella policy covering workers’ compensation, auto liability, and general liability. The cost of this insurance ranges from $500 to $700.

The Importance of Getting a Commercial Truck Insurance

To drive on public highways, you must have proper insurance, according to the Federal Motor Carrier Safety Administration (FMCSA). You should have a motor carrier number to get your insurance. For your trucking company to operate, you’ll need a certificate of insurance.

However, if your organization employs numerous drivers, it may be a good idea to conduct spot checks, monitor, and enhance their skills, and regulate their behavior behind the wheel.

Having well-trained drivers with a clean driving record will save you money and safeguard your reputation. It may also enable you to save money on your truck insurance.

How Much is Commercial Truck Insurance Cost in Canada?

If you own and operate a truck, you should expect to pay between $9000 and $15,000 per year for all insurance components, assuming you have a decent driving record.

However, truck insurance rates have risen in recent years, and you may have to spend as much as $30,000 a year, depending on the coverage you require and your driving history.

Owner-operators should pay between $2000 and $4000 for coverage if leased to a motor carrier. Certain variables, of course, will have an impact on the premium pricing.

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3 Major Factors in Calculating the Commercial Truck Insurance Costs

Several factors influence the cost of your truck insurance. Companies will examine your company’s activities and industry to determine what coverage you require and how much you must pay:

The type of the truck

A heavier and more powerful truck will have higher insurance expenses. A lightweight pickup truck is easier to maneuver and is less likely to cause damage than a heavier one.

Furthermore, the more expensive the truck is, the costlier the repairs will be. Your insurance premiums are likely to rise.

The size of the cargo

The type and size of cargo you carry in your truck will influence the insurance risk level and, as a result, the price. The more dangerous or heavier your vehicle is in an accident, the more damage it can wreak.

The driving radius

The higher the price, the more truck drivers utilize their vehicle and the longer they go. Long-haul trucking also means being behind the wheel for extended periods, which might make you exhausted and place you at a higher risk of an accident.

What are Some Common Questions to Consider When it Comes to Commercial Truck Insurance in Canada?

Some of the frequently asked questions, aside from the subject of how much commercial truck insurance is required in Canada, that are crucial to examine are as follows:

  • Is it possible for my tools to be replaced if they are taken from my truck?
  • Is it possible to obtain loss of income coverage if my truck is involved in an accident and cannot be used?
  • Are attached equipment covered?
  • What is the appropriate level of liability protection?
  • What exactly are accident benefits, and how much should I invest in them based on my age, financial status, and other factors?

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Ways to Save Money on Canadian Commercial Truck Insurance

Having a clean driving record is one of the best methods to save money on truck insurance. Extra safety training can help you keep out of trouble, avoid speeding tickets, and avoid accidents. If you have a CDL, you can save a lot of money on your insurance as well.

You can also save money by paying your annual premium in full. If your company can afford it, you might want to go with this option to save money in the long run. Compared to monthly installments, a single payment can save you up to 20% on your vehicle insurance.

Your deductibles will also affect the cost of your insurance. Increase the deductible if you want to save money on your premium in the long run. This means that if something goes wrong, you’ll have more financial responsibility. Still, your monthly rates will decrease as the insurance company’s risk decreases.

What Are Commercial Truck Insurance for New Drivers?

Finding insurance in the trucking sector can be pretty difficult. The trucking sector has seen a significant transformation, particularly in the area of insurance. Recently, getting trucking insurance has gotten much more challenging. Many of the insurers that were formerly writing a lot of policies have stopped issuing terms rather frequently. Truck drivers can earn very well, but frequently the hardest part is finding a company willing to give you a chance. Being a new truck driver, you now find yourself in a difficult situation. The chances are obviously not to the driver’s benefit while trying to get commercial truck insurance.

The 2-year rule is another real concern. Many businesses have strict policies regarding insurance. Before they insure a driver, drivers must have at least two years of truck driving experience. This can make the already difficult process of finding insurance much more difficult.

As a beginner truck driver, you require a variety of insurance. You must ensure you have the necessary insurance to work with load brokers and other employers.

  • Liability Insurance
  • Physical Damage Coverage
  • General Liability Insurance
  • Motor Truck Cargo Insurance
  • Refrigeration Breakdown Coverage
  • Trailer Interchange Insurance
  • Bobtail Insurance
  • Umbrella/Excess Liability Insurance

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Conclusion

Many persons trying to “sell” your insurance want you to think that all insurance products are the same. On the other hand, commercial truck insurance must be tailored to your specific needs, especially if your company relies on cars to generate money.

Get a knowledgeable commercial insurance broker to assist you in determining how much commercial truck insurance costs in Canada, as well as any other questions you may have about truck insurance.

Frequently Asked Questions

What is truck insurance?

Commercial truck insurance is a collection of particular auto insurance plans created to meet the needs of trucking companies. Your trucks are covered by standard commercial truck insurance plans in the case of an accident. The majority of damages from a variety of risks are covered by collision and comprehensive coverage.

Why is commercial truck insurance so high?

Work-related driving and cargo transportation are connected with increased risk. These are two primary reasons why commercial truck insurance rates are higher.

How much do trucks cost to insure?

If you own and operate a truck, you should expect to pay between $9000 and $15,000 per year for all insurance components, assuming you have a decent driving record.

Which insurance is best for trucks?

You will find several truck insurance providers in Canada. Before you pick the best insurance coverage for your truck, compare and contrast among the options.

How can I lower my commercial truck insurance?

The best way to lower commercial truck insurance is to hire experienced drivers with clean records. Also, it would help if you had newer and safer trucks driving on the road to reduce insurance expenses.

Are 4×4 more expensive to insure?

Yes, a 4×4 truck is more expensive than a minivan or sedan. This is because of its greater body size, higher value, and potential for use in more dangerous conditions.

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