Learn about box truck insurance cost, factors affecting it, best online quotes, and box truck insurance companies here.
Box trucks are as efficient as cargo vans when it comes to transporting light to medium-weight loads. These trucks pick up where tractor (trailers and rail) transportations leave – they move cargo to and from depots, warehouses, and distributors.
However, huge risks are still haunting the trucking industry such as accidents, theft, fire, and legal claims. This is why insurance is a requirement when starting a box truck business (CDL/non-CDL) or even managing an existing one.
With a tailored box truck insurance package, you are sure to get a comprehensive Protection. You can use this to cover lawsuits, take care of vehicular accidents, refund the value of the damaged cargo, and other troubles. With good insurance coverage, you protect your box truck business in California or any other place in the USA.
What is Box Truck Insurance?
Box truck insurance is a type of commercial truck insurance that provides valuable coverage in the event of an accident for you, your drivers, and your box truck. It provides liability coverage in addition to other types of commercial insurance such as collision and comprehensive.
In almost every state, auto insurance or general truck insurance is required for all vehicles. This is also true for box truck insurance. It will protect not only you and your employees but also your company’s assets.
An accident can be very costly, and you do not want to be held responsible for the damage, nor do you want to face the legal ramifications of driving without box truck insurance.
Types of Trucks Covered by Box Truck Insurance
You may have the basic idea of a box truck, but this type of commercial insurance is not always just for the typical box truck that you know. Other trucks like moving trucks and straight trucks can benefit greatly from a box truck insurance policy.
Some common types of vehicles insured with box truck insurance include:
- Moving trucks
- Straight trucks
- Flatbed trucks
- Tilt cabs
Box Truck Insurance Cost
How much does a box truck insurance cost?
The cost of box truck insurance varies greatly. This is due to the fact that each trucking company faces unique risks. When determining insurance rates, insurance companies consider a number of factors, and these details will influence your quote. Remember, the following ballpark estimate is just that: an estimate. Depending on your industry, your rates could be lower or higher.
Okay, now that we’ve established that, box truck insurance costs between $2,000 and $40,000 per truck annually. A rural business with a low loss record would be at the lower end of that range, while a business with tickets and accidents would be at the upper end. Your company may fall within this range, and where you fall depends on a variety of factors. Your company is unique, and even if a similar business in your area pays a certain amount for its insurance coverage that doesn’t mean your rates will be the same.
Below are what Affects Box Truck Insurance Cost:
- Claims/loss history
- Speeding tickets
- Number of box trucks
- Type of goods being hauled
- Length of time in business
- Location and hauling radius
Your company could be at the lower end of the range we provided above, or at the upper end. You could also be outside of the range entirely. Insurance premiums vary greatly from company to company, which is why it’s critical to get a trucking insurance quote to explore your options.
More so, you may need extra coverages to bolster your protection. Below are some estimates of their cost:
- Commercial box truck insurance offering primary liability policy is $416.66 a month or $5,000 per year
- The average box truck insurance cost for a general liability policy is $25 a month or $300 annually.
- Cargo insurance for box truck insurance cost $145.83 a month or $1,750 a year
- The average cost of box truck insurance having physical damage coverage is usually $2,300 a year or $191.66 a month
- Workers compensation included in box truck business insurance is $3,000 a year or $250 a month.
- The average insurance cost for box truck non-trucking liability policy is $41.66 a month or $500 a year
We also looked at the pricing of the best companies offering box truck insurance cost. The rates are reflected in the table as shown below:
|Insurance Company||Monthly Rate||Annual Rate|
What Factors Affect Box Truck Insurance Cost?
Note that the actual box truck insurance cost depends on the provider and several factors such as:
1. Box Truck Value
High-value box trucks are more expensive to insure because they are more expensive to replace or repair. Similarly, if your box truck is older, your commercial insurance will be more expensive.
2. Business Location
Increased traffic in urban areas leads to an increase in accidents. If your business is in a city or town, your insurance premiums for a box truck will most likely skyrocket.
3. Distance Travelled
The greater the radius traveled, the greater the possibility of crashes and breakdowns. As a result, premiums may rise regardless of your business location, particularly if you are involved in interstate transportation.
4. Length of operation
If a company is well-established and has a clean loss record, its details and data may convince your insurer to reduce your premiums.
5. Goods Being Hauled
Premium rates rise when perishable, fragile, or expensive items are involved. The contract your company has with your client can also affect the cost of commercial box truck insurance.
6. Number of Box Trucks You Have
The risk of loss increases as the number of trucks increases. As a result, you’ll have to pay more for box truck insurance to protect your investment.
Your insurance rates may be affected by your loss runs, which are a history of all of your claims. If your company has a history of claims, accidents, or violations, your rates may be higher because you are more risky for the insurance company to insure. These things, in their opinion, make it more likely that you will face a claim in the future.
8. How Long Your Business Has Been Around
If you’re a well-established company that has been in operation for a few years, the insurance company has more information to examine and data to analyze. A mature company with a relatively clean loss record will most likely have lower rates than a newer company.
16 Foot Box Truck Insurance Cost
The cost of 16ft box truck insurance is $216 a month or $2,592 per year for a $1 million general liability coverage. Pricing depends on your location and other factors as mentioned above.
26 Foot Box Truck Insurance Cost
The cost of 26ft box truck insurance is $231.75 a month or $2,781 per year for a $1 million general liability coverage. Pricing depends on your location and other factors as mentioned above.
Straight Truck Insurance Cost
To be clear, straight truck insurance is the same as box truck insurance, just as a box truck is also referred to as a straight truck. As a result, the average cost is the same: $125 per month or $1,500 per year for a $1 million general liability policy.
What Businesses Need Box Truck Insurance Coverage?
Simply put, if your company owns and operates at least one box truck, you must have box truck insurance. According to state insurance laws, every truck on the road, commercial or not, must be covered by commercial insurance.
A number of businesses rely on box trucks to run their operations, and as a result, they require box truck insurance. Box truck insurance is commonly required by the following types of businesses:
- Retail distributors
- Furniture delivery business
If your company is not listed but still uses box trucks, you should investigate commercial box truck policies. Failure to do so puts you and your company at risk. One accident can wipe you out financially.
What Box Truck Insurance Covers
Coverage for box trucks is similar to that of general auto insurance policies. There are some truck-specific policy add-ons available to expand coverage, but those will be discussed further in the following section.
The following are the types of coverage provided by a standard box insurance policy:
1. Liability Insurance Coverage
Liability insurance covers both property damage and bodily injuries caused by you in an accident. This could be useful in a hazmat situation where your cargo damages another vehicle, road, or person. Legal fees and settlement costs can also be covered by liability insurance.
2. Physical Damage (Collision & Comprehensive Insurance)
Physical damage insurance includes collision and comprehensive coverage. Collision coverage will pay for damage to your commercial vehicle caused by an accident, regardless of who was at fault. Comprehensive coverage pays for damage to your vehicle caused by an incident other than a collision, such as theft, vandalism, or even a tornado.
3. Medical Payments
This insurance will pay for medical expenses incurred by you and your employees as a result of an accident. It will pay out regardless of who was at fault.
4. Uninsured and Underinsured Motorist Insurance
If you are in an accident with someone who does not have liability insurance, this coverage will help pay for your medical bills and box truck repairs. However, it should be noted that this only works if the other party is found to be at fault for the accident.
Trucking-Specific Insurance Coverage
You can add a number of truck-related coverages to your insurance policy. Understanding how these will help protect you and your drivers from a variety of incidents that they may encounter while traveling is critical to the success of your company.
The following are examples of common insurance policy add-ons:
1. Towing Insurance
Towing coverage will assist you in getting to an auto shop for necessary repairs if your truck is involved in an accident or has a mechanical failure.
2. Trailer Insurance
Trailer insurance protects you if your truck’s trailer is damaged or stolen.
3. Trailer Interchange Insurance
This provides insurance coverage if you are participating in a trailer interchange services.
4. Unattended Truck Insurance Coverage
Unattended truck insurance is useful if you have drivers who travel long distances and need to stop for food or sleep. This insurance will protect the truck from damage or hazards while it is idle or unattended.
Now, all of these factors affect box truck insurance costs. So, how can you know for sure how much your particular company/business will pay? The best way is to get a truck insurance quote. That will give you the most accurate idea of how much box truck insurance will cost for your business, and that’s where our team of insurance experts comes in.
We can help you get the best coverage at the best possible rate so you can save money on your truck insurance coverage. All you need to do is fill out our online quote form or call us today. Then we’ll shop your rates, go over your quotes, and help you create a customized insurance plan that suits your business. And of course, we’ll be here to help with any of your insurance needs if need be.
Frequently Asked Questions about Box Truck Insurance Cost
Q: What factors determine the cost of box truck insurance?
A: Several factors can affect the cost of box truck insurance. These include the value of the box truck, its age and condition, the driving record of the driver, the type of cargo being transported, the distance of travel, the location of operation, the coverage limits and deductibles chosen, and the insurance provider’s specific pricing policies.
Q: Are there different types of box truck insurance coverage options available?
A: Yes, there are different types of box truck insurance coverage options available. The most common ones include liability coverage, which protects against damages and injuries caused to others; physical damage coverage, which covers damage to the box truck itself; cargo insurance, which protects the cargo being transported; and uninsured/underinsured motorist coverage, which provides coverage in case of an accident with an uninsured or underinsured driver. Additional coverage options like roadside assistance and rental reimbursement may also be available.
Q: How can I lower the cost of box truck insurance?
A: There are several ways to potentially lower the cost of box truck insurance. Maintaining a clean driving record, completing driver safety courses, and having multiple years of driving experience can help reduce premiums. Increasing deductibles or choosing a lower coverage limit may also result in lower premiums. Additionally, installing safety features, such as GPS tracking devices and anti-theft systems, can sometimes lead to discounts. Shopping around and comparing quotes from different insurance providers can also help find more affordable options.
Q: Do I need box truck insurance if I use my truck for personal use?
A: If you only use your box truck for personal purposes, such as moving personal belongings or transporting items for personal projects, your personal auto insurance policy may provide some coverage. However, it is important to check with your insurance provider to ensure you have the appropriate coverage. If you use your box truck for any business-related activities, such as making deliveries or transporting goods for compensation, you will likely need a commercial box truck insurance policy.
Q: Can I add additional drivers to my box truck insurance policy?
A: Yes, many box truck insurance policies allow you to add additional drivers to your policy. However, the cost of insurance may vary depending on the driving records and experience of the additional drivers. It’s important to provide accurate information about all drivers who will be operating the box truck to ensure proper coverage.
Q: Does box truck insurance cover all types of cargo?
A: The coverage for cargo can vary depending on the insurance policy. Some box truck insurance policies may include basic cargo coverage, while others may require purchasing separate cargo insurance. It’s important to carefully review the terms and conditions of the insurance policy to understand the extent of cargo coverage provided.
Q: Can I cancel my box truck insurance policy at any time?
A: Generally, you can cancel your box truck insurance policy at any time. However, there may be cancellation fees or penalties involved, depending on the terms and conditions of the policy and the insurance provider. It’s best to review your policy documents or contact your insurance provider directly to understand the cancellation process and any associated costs.