Factors That Affect Trucking Insurance Rates (And How to Lower Yours)
Running a trucking business is no small task. Between fuel, maintenance, and driver pay, expenses can pile up quickly. But one of the biggest costs that often surprises new and experienced truckers alike is insurance.
At Cook Insurance Group, we talk with truckers across Texas, Oklahoma, and Arkansas every day. One of the most common questions we hear is:
“Why is my insurance rate so high, and what can I do about it?”
The truth is that trucking insurance rates are not set at random. Insurance companies look at dozens of factors when calculating your premium. Some of these are within your control, and others are not. The more you understand what goes into your rate, the better you can position yourself to save money.
In this guide, we’ll cover:
- The main factors insurance companies look at
- Why each factor matters
- What steps you can take to lower your costs
- Common mistakes that raise premiums unnecessarily
- Real examples from truckers we’ve helped
Key Factors That Affect Trucking Insurance Rates
1. Driving History
Insurance companies put a lot of weight on driving records. If you or your drivers have clean records, you’ll likely see much lower rates.
- Clean Record Example: A trucker in Oklahoma with zero accidents and no tickets paid about $11,000 per year.
- Riskier Record Example: Another driver in Texas with two speeding tickets and a minor accident paid closer to $17,000 for similar coverage.
Even small violations add up, so safety pays off.
2. Type of Cargo
Not all cargo is the same in the eyes of insurers. Some freight is considered low risk, while others carry higher risk because of potential damage, theft, or hazardous materials.
- Low-Risk Cargo: Dry goods, packaged food, clothing
- Higher-Risk Cargo: Refrigerated products, electronics, heavy machinery, hazardous materials
The more dangerous or valuable the cargo, the higher your premium.
3. Truck Value and Type
A brand-new semi worth $180,000 will cost more to insure than a used truck worth $40,000. Larger trucks and specialty equipment also increase costs, since they can cause more damage in an accident and cost more to repair.
4. Location and Routes
Where you operate plays a huge role in your rates.
- Texas: Busy highways like I-35 and I-45 increase accident risks.
- Oklahoma: Fewer large cities mean generally lower rates.
- Arkansas: Costs are moderate, but hauling through Little Rock can raise premiums.
If you stick to rural routes, your rates may be lower than someone regularly driving through Dallas or Houston.
5. Years in Business
New trucking companies usually pay higher rates. Why? Because they don’t have a track record yet. After two to three years of safe operation, insurance companies typically lower premiums.
6. Coverage Levels
The more coverage you buy, the more you’ll pay. But skimping on coverage isn’t wise, since one major accident could put you out of business.
Federal law requires at least $750,000 in liability coverage for interstate truckers, but most shippers and brokers want $1 million or more.
7. Credit Score and Financial History
In many states, insurers check credit scores to help determine risk. Truckers with strong credit often see lower premiums than those with weaker scores.
8. Claims History
If you’ve filed multiple claims in the past, insurers may assume you’re likely to file more in the future. This almost always leads to higher premiums.
How to Lower Your Trucking Insurance Rates
Now that you know what factors drive up your costs, let’s talk about how to bring them down.
1. Focus on Safety
- Keep your driving record clean
- Require defensive driving or safety training for drivers
- Use ELDs (Electronic Logging Devices) and dash cams
2. Keep Equipment Maintained
A well-maintained truck is less likely to break down or cause accidents. Document inspections and repairs to show insurers you’re serious about safety.
3. Raise Your Deductibles
A higher deductible lowers your monthly premium. Just make sure you can afford the deductible if you have a claim.
4. Work With an Independent Agency
At Cook Insurance Group, we’re not tied to one carrier. We compare multiple companies to find the best rates for truckers in Texas, Oklahoma, and Arkansas.
5. Stick With the Same Insurer
Staying loyal to one insurance company may earn you discounts over time, especially if you have a clean claims history.
6. Consider Your Radius
If possible, limit routes through high-traffic metro areas. Some insurers may adjust your rates if most of your miles are in less-congested regions.
Mistakes That Raise Rates (And How to Avoid Them)
- Not Disclosing All Drivers: Hiding a driver with a poor record will backfire when the insurer finds out. Always be upfront.
- Letting Coverage Lapse: A gap in insurance history makes you look riskier, even if you didn’t drive during that time.
- Only Looking at Price: The cheapest policy isn’t always the best. If coverage is too low, one claim could ruin your business.
Real-World Example: Lowering Rates in Arkansas
A small fleet in Arkansas came to Cook Insurance Group paying $45,000 per year for four trucks. After reviewing their situation, we helped them:
- Increase deductibles
- Install dash cams
- Move to a carrier better suited for their routes
Their new premium? $36,500 per year — a savings of $8,500.
The Bottom Line
Trucking insurance costs can feel overwhelming, but by understanding the factors that drive rates, you can make smarter choices that lower your premiums over time.
At Cook Insurance Group, based in Dallas and serving truckers throughout Texas, Oklahoma, and Arkansas, we specialize in helping owner-operators and fleets save money without cutting corners on protection.
Want to see how much you could save? Contact us today for a free trucking insurance quote. 👇
Cook Insurance Group: Your Partner in Trucking Insurance
With over 20 years of experience in the trucking insurance industry, Cook Insurance Group offers unparalleled service and expertise. Serving large fleets, small fleets, single-owner operators, tow trucking operations, and charter bus lines, we focus exclusively on the trucking industry to provide the best insurance solutions. Our friendly, bilingual staff is dedicated to helping you find the right insurance protection at the right cost.
At Cook Insurance Group, we tailor our services to meet the specific needs of both small and large fleet trucking companies. Our representatives manage every aspect of your insurance program, ensuring you have the best plan for your unique needs. We offer immediate certificate and ID card issuance, 24/7 certificate availability, and a client portal for easy access to certificates, claim status, and policy details.
Our prompt and reliable service includes 24-hour claims reporting for physical damage and motor truck cargo.We also provide educational seminars for management and drivers, licensed risk managers to assist with CSA scores and driver training, border risk coverage (NAFTA), and mid-year loss run reviews. Whether you are located in Texas, Arizona, or Arkansas, choose Cook Insurance Group for all your trucking insurance needs.
Choose Cook Insurance Group for all of your trucking insurance needs whether you are located in Texas, Arizona or Arkansas.
