Like any other type of vehicle, pickup trucks must have minimum insurance coverage if you operate them on the streets. In addition to meeting state minimums, you must also consider how you use your truck before purchasing insurance. Will your personal automobile policy be enough coverage, or do you need to buy a commercial policy?
This guide will attempt to take some of the mystery out of getting the appropriate insurance for your pickup truck. Our primary focus is the cost of insurance for your truck and things that contribute to the price, and ways to save on insurance. However, we will also look at different kinds of insurance available and how to know if you need a commercial policy. Here are our topics for this article:
- How much does pickup truck insurance cost per month?
- Factors affecting pickup truck insurance cost
- How to save on pickup truck insurance costs
- What does pickup truck insurance cover?
- How do I know if I need a commercial truck policy?
How much does pickup truck insurance cost per month?
Rates for pickup truck insurance vary depending on the truck’s use and even what kind of truck you have. The folks over at the Zebra did a comprehensive breakdown of coverages provided by multiple companies, and the average annual cost of pickup truck insurance in 2020 was $1,731. That average is $144.25 per month.
Some quotes will be less than that, while others could be significantly more depending on various factors. Based on their data, it appears that USAA is consistently the least expensive option for truck insurance. They have specific criteria you must meet to be insured by them.
These are just the averages. Your quote will be different. The best way for you to save on your pickup truck insurance is to get several quotes from different companies or work with a broker and compare them to select the cheapest one for you.
Factors affecting pickup truck insurance cost
As with any personal or commercial policy, several factors affect the cost of your pickup insurance. Here are some of the most common.
The kind of pickup truck you have
The more expensive your pickup truck is, the higher the insurance premiums are. It is because expensive trucks will cost more to repair and replace.
What you haul with your truck
This is usually required by your cargo shipper or broker. Depending on the cargo you haul, different shippers and brokers will have different cargo insurance requirements. The higher coverage they demand, the more expensive the insurance policy is.
Where you haul your goods
If you haul the goods in short distance, you will pay less premiums compared longer distance. It is because longer distance will increase the chance of accidents. Also, if you haul goods in your state only, you don’t cross state border line, the premiums will be much less than interstate hauling.
Who the primary driver is
The primary driver’s credit score and their driving record plays a big role in determining the cost of the truck insurance policy. The higher the credit score, the better and cleaner the driving record, the cheaper the cost of pickup insurance policy is.
Surprisingly, other factors such as the amount of education you have, your profession, your loyalty to the company, and life changes can also affect your insurance rates. Keep all of these things in mind when you are shopping for insurance coverage.
How to save on pickup truck insurance costs
Most people want to save as much money as possible. We’ve never heard someone say, “Please help me spend more on my insurance.” We’ve compiled some tips that could help you save money on your insurance costs with that in mind.
Insurance companies set their rates, and those rates are not consistent across the industry. It’s wise to compare rates from multiple companies to find the best price. Just make sure you’re comparing the same coverages when you look at varying rates.
Bundle if possible
Many companies allow you to bundle policies. Bundling allows you to get the coverage you need for multiple instances while still saving money. Ask your insurance company if they offer this tool for saving money.
Ask what discounts are available
Some insurance companies offer discounts to decrease their premiums. There might be multi-car, good driver, or accident-free discounts depending on the insurer. Some companies also offer discounts for being a loyal customer.
Increase your deductible
Your deductible is what you pay out of pocket if you have to make a claim. If you have a higher deductible, it typically means you will pay a lower premium.
Consider using a broker or comparison tool
Comparing prices is one of the best ways to find the best price for the coverage you need. Brokers like CoverWallet will compare quotes for you. MoneyGeek offers an online quoting tool as well.
Store your truck when you aren’t using it
Did you know that some companies reduce your coverages to keep only the absolute essentials if you aren’t driving your truck for an extended time? Ask your agent if they offer reduced premiums when your truck is parked for extended lengths of time.
Is pay-as-you-drive coverage available?
Some companies offer coverage that allows you to pay by the mile you drive. If you don’t drive your truck frequently, this kind of policy might be beneficial to you.
These are only some suggestions for saving money on insurance policies. Talk with your agent to determine how your insurance company can help you save.
What does pickup truck insurance cover?
If you only drive your pickup truck for recreational use, you can likely add it to your personal automotive policy and have enough coverage. However, if you use your truck for business, you will need to look at a commercial policy for pickups. The coverages on a commercial pickup policy are similar to those on a personal policy, but there are typically higher limits and some differences to consider.
A commercial pickup truck policy typically includes:
Liability covers damage or injuries caused to other people. Typically this coverage includes bodily injury and property damage.
Physical damage covers the damage to your truck. This coverage is typically comprised of collision to cover damage from an accident and comprehensive to cover damages from weather, fire, theft, or vandalism.
This is coverage that covers risks associated with pulling a trailer. The kind of trailer will determine the type of coverage associated with this portion of the policy.
Underinsured or uninsured motorist
This coverage is for damages caused in an accident where the at-fault driver doesn’t have adequate insurance coverage.
Even with a commercial policy, your state dictates the minimum coverages you must have. The minimums include at least liability insurance, whether you’ve purchased a personal or commercial policy.
How do I know if I need a commercial truck policy?
Do you routinely use your pickup for business purposes? If so, you need commercial insurance. Whether you simply use the truck to get to a construction site or routinely haul supplies and equipment, a commercial policy is designed to provide the coverages you need to protect your truck and your equipment and you and your employees.
Pickup truck insurance is a necessity regardless of how you use it. If you only drive your truck for recreational purposes or as a daily driver to and from your office, a personal policy will cover your truck. However, if you routinely use your pickup for business purposes, you will need a commercial truck policy to get the appropriate coverages.