If trucking insurance premiums are killing your budget, you’re not alone.
Premium rates rose 12.5% in 2025, with some carriers even experiencing a 20-30% increase. On average, carriers pay $12,000 to $17,000 per truck for basic coverage.
With insurance rates so high, many truckers are asking the same question:
Why are trucking insurance premiums so high?
Here’s what’s going on behind the insurance curtain and what you can do to get your premium down.
Why are Trucking Insurance Premiums So High?
Trucking insurance premiums aren’t rising for one reason, but for a cocktail of circumstances. Here are some of the most significant contributing factors.
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Labor, materials, and maintenance are all more expensive now.
The macroeconomic issues are jacking up prices like never before. As the cost of labor, materials, and maintenance increases, so do claims.
The average auto claim has jumped from $13,000 to $38,000 in just two years. Insurance companies simply need to pay more to meet the rising cost of repairs.
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Social inflation.
‘Social inflation’ is the rise in insurance costs attributable to social changes. In 2025, social inflation has played a significant role in high insurance premiums.
Social inflation has come about by a variety of means, including:
- The self-propagating nature of nuclear verdicts. As more trucking settlements are paid out in the millions, it creates a precedent for other cases to follow suit.
- Litigation funding, or outside investors funding lawsuits in exchange for a portion of the payout. This creates longer lawsuits and greater strain for insurance companies.
- Shifting public sentiments with sympathy for individuals and disdain for corporations.
- Higher prevalence of attorney advertisements makes lawsuits more common.
These factors pressure insurance companies financially, prompting them to raise rates to accommodate rising costs.
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Natural disasters are rising.
According to the United Nations, natural disasters have doubled since the 1980s. Some disasters, including floods, have even doubled over the last five years.
As extreme weather becomes more common, trucker liability will continue to increase, agitating insurance premiums.
Unfortunately, these conditions don’t seem to be temporary. To combat high insurance premiums, a host of cost-cutting techniques must be employed.
How to Reduce Insurance Premiums for Truckers
Though feeling helpless in the face of rising insurance costs can be easy, truckers can control them through a few best practices.
- Safety programs: Regular driver training and safety procedures can mitigate risk and reduce insurance premiums.
- Safety technology: Dash cams, collision avoidance systems, and telematics may seem like a steep upfront investment, but they can drastically pay off in the long run by avoiding costly accidents.
- Balance deductible/premium: If your fleet can handle a heftier up-front cost, increasing your deductible will decrease your premium for easier monthly payments.
- Frequently shop around: Don’t be complacent about your insurance provider. By staying informed about what other insurance companies can offer, you can keep your premiums at a minimum.
Insurance premiums are on the rise. As materials become more expensive, disasters increase, and the social climate exacerbates insurance costs, truckers grapple with difficult premiums.
Fortunately, good safety practices, a sound financial strategy, and market awareness can reduce premium costs.
Stay safe, truckers!