How Trucking Insurance Works & How to Get the Best Rates

Trucking insurance has gone up 47% in the last 10 years, and prices will keep rising because of inflation, medical costs, and higher repair prices.

🚨 But here’s the good news: Your fleet doesn’t have to pay high insurance rates! If you follow best practices, you can lower your premiums and get the best coverage possible.This guide will explain how insurance companies set their prices and how you can get the lowest rates for your trucks.

📢 Need expert help? Coverfleet has saved fleets $1K–$3K per truck per year by improving safety and helping them look better to insurance companies. ✅

🚛 3 Types of Trucking Insurance Companies

There are over 30 insurance companies that cover trucking fleets, but not all of them are the same.

1️⃣ The Best Insurance Companies 🏆 (Tier 1)

These are the top trucking insurance companies that have been around for many years. They are big, stable, and offer the best rates for safe fleets.

✅ Examples:

• Canal

• Great West

• Sentry

• Northland

• IAT Group

• Berkley

• AIG

📌 Why these are the best:
✔️ Lower prices for safe trucking fleets 📉
✔️ Financially stable and can pay claims quickly 💰
✔️ Flexible mileage reporting—great for growing fleets 🚛

📌 Who qualifies?
✔️ Fleets with good safety records
✔️ Fewer than 2 safety alerts on FMCSA scores
✔️ Claim frequency under 20% (under 10% is ideal)
✔️ Claim severity under 20% (under 10% is best)

💡 If you can get into this tier, do it! It means lower costs, better coverage, and long-term stability.

2️⃣ The Mid-Tier Insurance Companies ⚖️ (Flexible Players)

These companies work through fronting carriers and are managed by Managing General Agents (MGAs).

🚛 What does that mean?
These companies set their own prices but must keep finding money from investors to stay in business.

📌 Pros & Cons of Mid-Tier Insurers
✅ More flexible—they accept fleets with some safety issues 🚧
✅ Can offer good deals if your agent presents you well ✨
❌ Some programs last only 3–5 years before they disappear 💨
❌ Rates are usually higher than Tier 1 insurers 📈

📌 Who should consider this tier?
✔️ Fleets with slightly higher claim frequency (over 10%)
✔️ Fleets with 1–3 safety alerts but working to improve
✔️ Fleets that can’t yet qualify for Tier 1 but need decent pricing

🚀 Coverfleet has helped fleets move from Mid-Tier to Top-Tier insurance by improving safety scores. If you need help getting better rates, we can guide you!

3️⃣ Risky Insurers 🚨 (Last Resort)

These companies don’t have an A-rating and often charge really high prices. Some even go out of business and can’t pay claims.

📌 What makes these insurers risky?
❌ They might disappear in a few years 💨
❌ They can’t always pay claims
❌ Premiums are either very high or unrealistically low

📌 Who gets stuck with these companies?
❌ Fleets with 3+ safety alerts
❌ Fleets with high claim frequency (above 20%)
❌ Fleets with severe claims over 20%

🚨 Coverfleet avoids these insurers whenever possible. We help fleets improve safety and claims history so they can graduate to better insurance companies.

📝 What Insurance Companies Look At (How to Get the BEST Rates)

No matter what tier you’re aiming for, all insurance companies check 3 main things:

1️⃣ Years in Business 📅

💡 Why it matters:

• Less than 3 years = higher risk (not enough claim history).

• More than 3 years = better rates if claim history is good.

🚨 New trucking companies often struggle to get Tier 1 insurance because they don’t have enough history to prove they’re low risk.

2️⃣ Safety Scores (FMCSA) 🚦

💡 Insurance companies check your safety alerts to decide if you’re a safe or risky fleet.

🚛 Here’s how safety alerts affect your insurance options:

• 0–1 alerts = ✅ Tier 1 insurers available

• 2 alerts = ⚠️ Some Tier 1 insurers unavailable

• 3+ alerts = ❌ Most insurers won’t offer coverage

💡 What you can do:
✅ Work on reducing roadside violations to improve safety scores.
✅ Invest in driver training & compliance programs.
✅ Use a dash cam system to prevent false claims.

3️⃣ Claim Frequency & Severity 📉

📌 What do these mean?

• Claim Frequency: % of trucks in your fleet that had claims.
  ✅ Under 20% required | 💰 Under 10% preferred

• Claim Severity: How much money was paid out in claims.
  ✅ Under 20% required | 💰 Under 10% preferred

🚛 Example:

• A 50-truck fleet with 5 claims per year = 10% frequency (GOOD).

• A 50-truck fleet with 15 claims per year = 30% frequency (HIGH RISK).

💡 Tip: Settle small claims fast to keep your record clean and avoid rate hikes.

🚀 Final Thoughts: How to Get the Best Trucking Insurance Rates

Trucking insurance keeps getting more expensive, but you don’t have to overpay if you position your fleet correctly.

📌 Follow these steps to secure the best coverage:
✅ Keep claim frequency & severity under 20% (preferably under 10%)
✅ Improve your FMCSA safety scores (stay under 2 alerts)
✅ Work with an expert agent (Coverfleet can help!)
✅ Avoid risky insurers & aim for Tier 1 long-term

📥 Want to save $1K–$3K per truck per year? Contact Coverfleet today, and let’s get you the best rates! 🚛💰