Are you in it for the long haul? That’s a phrase we often ask when determining someone’s commitment to seeing a situation through to its end, often with the implication that the road ahead will be difficult or drawn out. Not everyone can hang in for the long haul! But unlike many challenges in life, long haul trucking insurance makes staying in the trucking industry for the long haul much easier.

Those who can commit to long haul trucking must also plan accordingly. Long haul trucking, or “over the road” trucking, involves driving larger trucks with heavier loads across distances typically over a 250-mile radius from the truck’s origin. Some truckers drive hundreds of thousands of miles annually, navigating between cities, states, or even across the country.

Long haul trucking, like long-haul anything requires planning. A lot can go wrong on the road and statistically speaking, the greater the distance driven, the greater the likelihood of accidents, emergencies, or other unforeseen circumstances. Some of the inherent risks involved in long haul trucking include: blown tires, brakes locking up, or the hitch coming loose. According to Brian Gawarecki, Sales Director at Farmers Insurance, “Long haul truckers face unique risks on the road, which makes sufficient insurance coverage critical not only for their safety but also for protecting their livelihoods.”

Obtaining long haul trucking insurance is the first step to planning and executing a safe long haul route. Long haul trucking insurance is critical. Companies won’t hire truckers without insurance; not to mention the risk of lawsuits with any accident.

As Gawarecki emphasizes, “Insurance is not just a safeguard but a necessity in the trucking industry.”

1. Overview of Long Haul Trucking Insurance

Long haul trucking insurance is insurance for trucks that transport goods from one location to another, usually across the country. Depending on the type of coverage, the scope could range from insuring only the vehicle to the cargo being hauled.

The importance of specialized insurance for long haul routes cannot be overstated. While cookie-cutter policies are available, it’s essential to consider the specifics of both the truck and its load when evaluating the need for more tailored protection. Gawarecki points out, “Every trucking operation is different, and insurance policies should reflect those unique factors. Coverage needs vary based on the type of goods being hauled, the truck’s value, and the route being taken.”

For long haul trucking insurance, the key coverage types include:

• Liability: This is an absolute must and is legally required for all trucking operations. The typical minimum for big rigs is $1 million in coverage. “Liability insurance protects truckers and their companies from potential lawsuits in case of an accident,” Gawarecki explains. “It’s the foundational coverage that no one can afford to overlook.”
• Cargo: Always recommended, cargo insurance typically starts at $100,000 and may be a requirement in many contracts. “Cargo insurance covers the goods being transported,” says Gawarecki. “If anything happens to the load, from theft to damage, this coverage ensures the trucker and the company aren’t financially liable for the loss.”
• Physical Damage Insurance: This broad term may sometimes be included within liability policies, but generally it refers to comprehensive and collision coverage. Gawarecki advises, “Physical damage insurance helps repair or replace the truck in case of accidents, whether it’s due to a collision or other damage, like a fallen tree branch. Truckers can’t afford to be without it when their vehicle is their livelihood.”

1. Factors Influencing Premium Rates 

You may be surprised at some of the factors that determine insurance premium rates—and those that don’t. 

The Truck

Truck-related factors such as the model and age of the truck certainly influence rates, as expected. However, the condition and maintenance history are surprisingly not major factors. Gawarecki explains, “Insurance companies focus on the make and year of the truck because those are strong indicators of reliability and risk. But the way the truck has been maintained is harder to quantify, so it’s often not factored into premiums.”

The Route

Route-related factors also play a role, although they are a smaller part of the equation. Distance and frequency of travel are considered, but compared to other factors, these have a minimal impact. “While long routes may increase risk,” says Gawarecki, “insurance companies weigh the driver’s experience and history more heavily when calculating premiums.”

The Driver

That’s right; driver-related factors are some of the most influential considerations. Experience and driving record are critical, with insurance companies essentially “playing the odds” when assessing risk. “Insurance companies don’t exactly reward good driving habits, but they do penalize poor records,” Gawarecki says. “If a driver has marks against their driving history, especially within the last five years, they can expect higher rates—even if those incidents were minor.”

Safety Measures

The amount of cargo coverage and any additional insurance will also affect rates, as will safety measures. While safety training and certifications are sometimes required, they don’t often result in significant premium discounts. “It’s the after-market safety features, like collision avoidance systems or dashcams, that have a more substantial impact on lowering costs,” Gawarecki notes. “These features show insurance companies that you’re actively trying to reduce risks, which makes them more likely to offer better rates.”

1. The Consequences of Insufficient Coverage

For anyone tempted to bypass long haul trucking insurance, it’s crucial to understand the significant financial risks and liabilities associated with being underinsured. Failing to properly insure a vehicle could lead to crushing financial consequences that far outweigh the cost of better contracts for service.

Gawarecki warns, “Being underinsured is a gamble no trucking company should take. The potential financial impact of a single accident without adequate coverage can put a company out of business.”

The trucking industry is heavily legislated, which is why larger trucking companies pay millions in premiums annually. “Regulatory compliance is a key driver of insurance costs, but it’s also what keeps trucking companies in business,” Gawarecki explains. “Adequate long haul trucking insurance ensures you meet legal requirements and avoid costly penalties or legal implications that could arise from insufficient coverage.”

By securing the right insurance policies, trucking companies can protect themselves from unexpected risks on the road, ensuring both financial security and long-term success.

1. Selecting the Right Policy

Selecting the right policy begins with assessing specific business needs and risks, which is why it’s essential for drivers to find an honest agent who prioritizes coverage over price.  “It’s easy to get distracted by lower premiums, but the true value of insurance lies in the coverage it provides,” Gawarecki advises. “A good agent will focus on what’s most important—protecting your business and livelihood.”

Since insurance providers are constantly competing for business, it’s wise to compare rates among different companies. Gawarecki suggests, “Shopping around for a new policy every few years can lead to significant savings. With rates fluctuating regularly, you never know when a better deal might be available.” In fact, 76% of the time, consumers who shop around save money.

Understanding policy terms and conditions is also important. Gawarecki emphasizes, “You don’t want to wait until you’re filing a claim to learn the ins and outs of your policy. Too often, drivers opt for the minimum coverage, only to realize they should have focused on securing the right coverage after an incident.” To avoid this, it’s recommended to seek professional advice from knowledgeable agents or brokers who can help you navigate policy details and ensure you’re properly protected.

1. i2290.com is With You For the Long Haul

There are a lot of things a trucking company needs to do off the road to ensure they’re safe and in compliance while on the road. As they say, if you fail to plan, you plan to fail. An uninsured incident or accident could destroy a business in an instant. Long haul trucking insurance is a must!

If you run long-haul routes, you certainly need to remember to file your Form 2290 – i2290 does the heavy lifting for you here. With i2290, you can enjoy the convenience of e-filing your return from anywhere with internet access, saving time and money, while reaping the additional benefits of easily accessible digitally maintained records for seven years, filing VIN corrections and weight increase amendments for free, and access to a world-class customer service team – we are here for the long haul! 

Create an account with i2290 today and answer a few questions about your vehicle and your business. Then for a small fee, we will do the calculations for you and generate your stamped Schedule 1 in a matter of minutes!

Special note: This article is for general purposes, and is not intended to provide, and should not be relied on for tax, legal, investment, or accounting advice. The best way to ensure you’re properly filing and paying appropriate taxes is by following IRS regulations and consulting with a tax professional. 

Brian Gawarecki is the Sales Director at the Michael Woolstrum Agency with Farmers Insurance in Round Rock, TX. Specializing in small business insurance, Brian helps companies in the Austin-Round Rock metro area protect their operations and prepare for the unexpected with tailored coverage solutions. Special thanks to Mr. Gawarecki!