You're adding a second truck. You call your insurance agent for a quote.
Agent: "For truck #2 with a hired driver, you're looking at an additional $1,800/month."
You: "Wait... my first truck costs $800/month. Why does truck #2 cost $1,800?"
Welcome to fleet insurance. Everything changes when you stop being a one-truck owner-operator and become a fleet owner.
Here's how fleet insurance works, what coverage you need, why costs jump when you hire drivers, what non-owned trailer insurance is, and how to get better rates.
How Fleet Insurance Differs from Single-Truck Coverage
Single-Truck Owner-Operator
You drive your own truck:
- Insurance: $700-$1,200/month
- You're the only driver (lower risk)
- Simple coverage (liability + physical damage + cargo)
- One risk profile
Multi-Truck Fleet
Multiple trucks, hired drivers:
- Truck #1 (you driving): $700-$1,200/month
- Truck #2 (hired driver): $1,200-$2,500/month
- Truck #3 (hired driver): $1,200-$2,500/month
- Multiple risk profiles (each driver = different risk)
- More complex coverage needs
- Fleet discounts may apply (3+ trucks)
Key difference: Your insurance is based on YOU (your driving record, experience). Fleet insurance is based on your WORST driver.
Federal Insurance Requirements for Fleets
FMCSA Minimum Requirements
For interstate commerce:
- General freight: $750,000 minimum public liability
- Most brokers and shippers require: $1,000,000 liability
- Cargo insurance: $100,000 minimum (many require $100,000-$250,000)
For intrastate commerce:
- Varies by state
- Most states: $300,000-$750,000 minimum
From industry analysis, the federal minimum public liability is $750,000 for general freight, while many shippers and brokers require $1,000,000.
Reality: Get $1 million liability coverage. Anything less and you'll lose loads.
Required Documentation
When applying for fleet insurance, you'll need:
- DOT and MC numbers
- Current insurance certificates
- Detailed operation descriptions
- Driver information including license numbers and violation history
- 3-year loss history (claims, accidents)
- Vehicle information (VIN, year, make, model, value)
Cost Per Truck in a Fleet
Small Fleet (2-3 Trucks)
Average annual cost per truck:
- Clean records, experienced drivers: $10,000-$15,000/year per truck
- Mixed driving records: $15,000-$25,000/year per truck
- New drivers (under 2 years): $25,000-$40,000/year per truck (if insurable)
Monthly breakdown for 2-truck operation:
Truck #1 (owner-operator driving):
- Liability ($1M): $500-$700/month
- Physical damage: $200-$400/month
- Cargo ($100K): $100-$200/month
- Total: $800-$1,300/month
Truck #2 (hired driver with 5+ years experience):
- Liability ($1M): $800-$1,200/month
- Physical damage: $300-$500/month
- Cargo ($100K): $150-$250/month
- Total: $1,250-$1,950/month
Combined monthly premium: $2,050-$3,250 for 2 trucks
From TruckersReport forum:
"Insurance is based on number of power units, not number of drivers or trailers. You would only save on the physical damage amount." - gokiddogo
Translation: If you have 2 trucks but only 1 driver, you pay for 2 trucks' liability coverage. You DON'T get a discount just because one truck sits idle.
Mid-Size Fleet (4-10 Trucks)
Cost advantages kick in:
- Average: $8,000-$12,000/year per truck
- Fleet discounts: 10-20% off individual truck rates
- Better underwriter options (more willing to quote)
From industry data, for a small fleet of 4 trucks operating with $1 million liability and $100,000 cargo coverage, the per-truck cost ranges from $5,400-$10,200 per year ($450-$850/month) with clean loss records.
Why it's cheaper per truck: "As the number of vehicles goes up, the average cost per vehicle goes down, because underwriters look at the big picture, and the value of having you as a customer may convince them to offer quantity-based discounts."
Hired Driver Insurance Costs
The biggest cost factor: Hiring drivers significantly increases insurance costs.
Cost Increase When Adding Hired Driver
Scenario: You're adding truck #2 with a hired driver
Factors that determine cost increase:
- Driver experience (years with CDL-A)
- Driver's MVR (motor vehicle record)
- Driver's accident history (last 3-5 years)
- Driver's CSA score
- Type of freight (hazmat costs more)
From TruckersReport:
"I think it depends a lot on the experience of the driver you are hiring." - Stump
And:
"Will probably stay the same, the truck that you add will make the monthly payments go up not the driver." - EMCO_Trans
The reality: Both are true. The additional TRUCK adds baseline cost, but the DRIVER'S record determines how much more.
Driver Experience Impact on Insurance Cost
Driver with 10+ years experience, clean MVR:
- Insurance increase: +$500-$1,000/month
Driver with 5-7 years experience, 1-2 minor violations:
- Insurance increase: +$800-$1,500/month
Driver with 2-4 years experience, clean MVR:
- Insurance increase: +$1,200-$2,000/month
Driver with under 2 years experience:
- Insurance increase: +$2,000-$3,500/month (if insurable at all)
- Many insurers won't cover drivers under 2 years for small fleets
Driver with recent at-fault accident or serious violation:
- Insurance increase: +$2,500-$4,000/month
- May be uninsurable for 3-5 years after serious incidents
Types of Coverage You Need
1. Primary Liability Insurance
What it covers:
- Bodily injury to others
- Property damage to others
- Legal defense costs
Required amount:
- FMCSA minimum: $750,000
- Industry standard: $1,000,000
- High-value freight: $2,000,000
Cost:
- $500-$1,500/month per truck (depending on driver)
Not negotiable: Every truck needs this to operate legally.
2. Physical Damage Coverage
What it covers:
- Collision (accident damage to your truck)
- Comprehensive (theft, fire, vandalism, weather)
Typical deductible:
- $1,000-$5,000 per incident
Cost:
- $200-$600/month per truck
- Depends on truck value, age, and driver record
When to skip it:
- Truck is worth under $15,000 (self-insure)
- Truck is paid off AND you can afford to replace it
When you need it:
- Truck is financed (lender requires it)
- Truck value exceeds your emergency fund
3. Cargo Insurance
What it covers:
- Damage to freight you're hauling
- Lost or stolen cargo
- Refrigeration breakdown (reefer loads)
Typical coverage:
- $100,000 per load (industry standard)
- Some shippers require $250,000+
Cost:
- $100-$300/month per truck
Deductible:
- $1,000-$5,000 per claim
When it pays out:
- Cargo damaged in accident
- Cargo stolen while in your possession
- Reefer malfunction spoils freight
4. Non-Owned Trailer Coverage
What it covers:
- Physical damage to trailers you don't own but are pulling
When you need it:
- You pull broker or shipper-provided trailers
- You don't own your own trailers
- You're under power-only contracts
What it does NOT cover:
- Trailers sitting in your yard not attached to your truck
From industry sources: "Non-owned trailer coverage protects all borrowed or leased trailers in your possession. If any damage happens to the trailer when they are attached to your truck then this policy reimburses for the cost that the trailers have suffered."
Cost:
- $25-$75/month per truck
- Usually bundled with cargo coverage
Limit:
- Typically $50,000-$100,000 per trailer
5. Trailer Interchange Coverage
What it covers:
- Physical damage to non-owned trailers in your possession
- Covers trailers whether attached OR detached from your truck
Difference from non-owned trailer: "The key difference is that you don't require a written trailer interchange agreement in non-owner trailer coverage but the trailer must be attached to the truck in the incident."
When you need interchange coverage:
- You participate in trailer pool agreements
- You frequently swap trailers with other carriers
- You have signed interchange agreements
Cost:
- $50-$150/month per truck
Required: Written trailer interchange agreement
6. General Liability (Non-Trucking)
What it covers:
- Slip and fall at your office/yard
- Injuries to non-employees on your property
- Property damage caused by non-driving operations
Cost:
- $50-$150/month
Why you need it: If someone slips and falls at your office or yard, trucking liability doesn't cover it. General liability does.
7. Workers' Compensation Insurance
Required if you have employees (includes hired drivers in most states).
What it covers:
- Medical costs for work-related injuries
- Lost wages for injured employees
- Legal defense if employee sues
Cost:
- Varies by state
- Typically 8-15% of driver payroll
- $200-$500/month per driver
Independent contractors vs employees:
- If you classify drivers as independent contractors, you may not need workers' comp
- BUT misclassifying employees as contractors can result in massive penalties
Fleet Discounts and How to Get Them
When Fleet Discounts Start
3+ trucks:
- 5-15% discount
- More underwriters willing to quote
5-10 trucks:
- 10-20% discount
- Access to fleet-specific insurance programs
10+ trucks:
- 15-25% discount
- Dedicated fleet underwriters
- Customized coverage packages
From industry analysis: "Most insurance companies give discounts or incentives to people who insure their whole fleet with them."
How to Qualify for Fleet Discounts
1. Insure all vehicles with same carrier
- Don't split coverage across multiple insurers
- Bundle liability, physical damage, and cargo
2. Implement formal safety program
- Written safety policies
- Driver training documentation
- Pre-trip inspection protocols
- Accident review procedures
3. Maintain clean loss history
- Low claims frequency
- No major accidents
- Good CSA scores
4. Hire experienced drivers
- 5+ years CDL-A experience
- Clean MVRs
- No recent accidents
5. Use telematics/dash cams
- Proves driver innocence in accidents
- Reduces fraudulent claims
- Shows commitment to safety
Typical discount for telematics: 5-10% premium reduction
Insurance Cost Factors for Fleets
What Increases Your Rates
Driver factors:
- Young drivers (under 25)
- Inexperienced drivers (under 2 years CDL)
- Poor MVRs (violations, accidents)
- High CSA scores
Operation factors:
- Long-haul vs regional (long-haul = higher risk)
- High-crime areas (theft risk)
- Hazmat or specialized freight
- High annual mileage per truck
Company factors:
- New authority (under 2 years)
- High turnover (driver churn)
- Claims history
- Poor safety rating
What Decreases Your Rates
Driver factors:
- Experienced drivers (10+ years)
- Clean MVRs
- Low CSA scores
- Stable workforce (low turnover)
Operation factors:
- Regional vs long-haul
- Dedicated contracts
- Low annual mileage
- General freight (not hazmat)
Company factors:
- 3+ years in business
- No claims in last 3 years
- Safety program in place
- Dash cams and telematics
Insurance shopping strategy:
- Get 5+ quotes (rates vary wildly)
- Use insurance broker (they shop multiple carriers)
- Re-quote annually (rates change)
How to Get Fleet Insurance Quotes
Step 1: Prepare Your Information
Company information:
- DOT and MC numbers
- Years in business
- Number of trucks
- States you operate in
- Type of freight
Driver information for each driver:
- Full name, date of birth
- CDL number and state
- Years of CDL experience
- MVR (motor vehicle record)
- Accident history (3 years)
- CSA score
Vehicle information for each truck:
- VIN
- Year, make, model
- Purchase price or current value
- Truck use (who drives it)
Loss history:
- Claims in last 3 years
- Total dollar amount paid out
- Accidents (even if no claim)
Step 2: Contact Insurance Brokers
Don't go direct to insurance companies. Use brokers who shop multiple carriers.
Recommended brokers:
- Progressive Commercial (widely available)
- National Interstate (specializes in trucking)
- Reliance Partners (fleet-focused)
- CNS Insurance (owner-operator and fleet)
Quote timeline:
- Simple operation (2 trucks, experienced drivers): 1-3 days
- Complex operation (multiple trucks, new drivers, claims history): 1-2 weeks
Step 3: Compare Quotes
Don't just look at price. Compare:
Coverage limits:
- Liability: $1M vs $2M
- Cargo: $100K vs $250K
- Physical damage deductible: $1K vs $5K
Exclusions:
- Some policies exclude certain freight types
- Some exclude certain states
- Read the fine print
Payment terms:
- Monthly payments (higher total cost)
- Annual payment (10-15% discount)
- Down payment required
Financial stability:
- Check insurance company's AM Best rating
- A- or better recommended
- B+ acceptable
- C or lower = risky (may not pay claims)
Common Fleet Insurance Mistakes
Mistake 1: Not Disclosing All Drivers
The scenario: You hire a driver. He has 2 accidents on his MVR. You don't report him to insurance, hoping they won't find out.
What happens: Driver has an accident. Insurance investigates. They discover you didn't disclose the driver. They deny your claim and cancel your policy.
You're now personally liable for the $250,000 damage claim.
Solution: Disclose every driver. If a driver is uninsurable, don't hire them.
Mistake 2: Underinsuring Cargo
The scenario: You carry $100K cargo insurance. You haul a $180,000 load of electronics. Load is damaged in an accident.
What happens: Insurance pays $100K. You owe $80,000 out of pocket to the shipper.
Solution:
- Know your cargo values before accepting loads
- Increase cargo coverage when hauling high-value freight
- Some policies allow load-by-load cargo declarations
Mistake 3: Misclassifying Employees as Independent Contractors
The scenario: You hire drivers but classify them as independent contractors to avoid workers' comp insurance.
What happens: Driver gets injured. State audits your classification. Determines drivers are employees. You owe 3 years of back workers' comp premiums + penalties.
Cost: $50,000-$150,000 in back payments and fines.
Solution: If you control when, where, and how drivers work, they're employees. Pay for workers' comp.
Mistake 4: Letting Coverage Lapse
The scenario: You're 3 days late on insurance payment. Insurance cancels. You don't notice. Driver is pulled over. DOT finds no active insurance. You're placed out of service.
What happens:
- $5,000-$10,000 fine
- Authority suspended
- Trucks can't operate until insurance reinstated
- Lost revenue: $10,000-$20,000 while fixing
- Insurance companies now see you as high-risk (rates increase 30-50%)
Solution:
- Set up automatic payments
- Monitor insurance certificate expiration dates
- Keep 90-day buffer on credit card for auto-pay
How FF Dispatch Works with Fleet Insurance
We coordinate with your insurance for load documentation and certificates.
What we provide:
- Load confirmations showing insurance requirements
- Certificate of insurance (COI) requests for specific loads
- Documentation for claims (if accident occurs on our load)
Why this matters:
Scenario: Shipper requires $2M liability for a high-value load. Your standard policy is $1M.
What we do:
- Notify you of the requirement before booking
- Help you coordinate with insurance for umbrella coverage
- Verify COI shows correct coverage before pickup
We don't provide insurance, but we handle load-specific insurance documentation so you're not scrambling to get certificates at 5 PM on Friday.
Contact: (302) 608-0609 or gia@dispatchff.com Pricing: 6% of gross revenue No long-term contracts
If managing insurance certificates for different loads is slowing you down, we handle that coordination.
Bottom Line
Fleet insurance is more expensive and complex than single-truck coverage.
Cost per truck:
- Clean drivers, good records: $10,000-$15,000/year per truck
- Mixed records: $15,000-$25,000/year per truck
- New drivers (under 2 years): $25,000-$40,000/year (if insurable)
Required coverage:
- Primary liability: $1M (industry standard)
- Cargo: $100K minimum
- Physical damage: If financed or high-value truck
- Non-owned trailer: If you pull trailers you don't own
- Workers' comp: If you have employees
Cost factors:
- Driver experience (biggest factor)
- Driver MVR (accidents, violations)
- Years in business
- Claims history
- Type of freight
- Annual mileage
Fleet discounts:
- 3-5 trucks: 5-15% discount
- 5-10 trucks: 10-20% discount
- 10+ trucks: 15-25% discount
How to lower rates:
- Hire experienced drivers (5+ years)
- Maintain clean loss history
- Implement safety program
- Use dash cams and telematics
- Bundle all coverage with one carrier
- Shop 5+ quotes annually
Critical mistakes to avoid:
- Not disclosing all drivers (claim denial)
- Underinsuring cargo (personal liability for excess)
- Misclassifying employees as contractors (massive fines)
- Letting coverage lapse (authority suspension)
Insurance shopping strategy:
- Use insurance brokers (not direct carriers)
- Get 5+ quotes (rates vary 30-50%)
- Compare coverage, not just price
- Re-quote annually
- Check AM Best rating (A- or better)
The reality: From TruckersReport: "Insurance is based on number of power units, not number of drivers or trailers." - gokiddogo
You pay for EACH truck, whether it runs or sits idle. Factor insurance into your expansion math BEFORE buying truck #2.
Typical 2-truck monthly insurance:
- $2,050-$3,250/month combined
- $24,600-$39,000/year for both trucks
- $1,000-$1,625/month per truck average
Budget accordingly. Fleet insurance is one of your largest fixed costs.
Sources:
- Commercial Truck Insurance Guide 2026 - Vatic Insurance
- The Ultimate Guide to Truck and Fleet Insurance - Motive
- Forecasting Insurance Costs for Fleets & Owner-Operators - ATBS
- Commercial Fleet Insurance - Insureon
- Trailer Interchange Coverage Explained - Mission Financial Services
- Non-Owned Trailer Insurance Coverage - Truck Insurance NITIC
- Insurance Cost of Adding a Driver - TruckersReport Forum
- Insurance Cost: 2 Trucks 1 Driver - TruckersReport Forum