Insurance Cost for Hot Shot Trucking: What Affects Your Premium?
- 23 hours ago
- 2 min read
Understanding insurance cost for hot shot trucking is essential for owner-operators and freight businesses looking to stay profitable while remaining compliant. Insurance premiums for hot shot trucking can vary significantly based on risk factors, driving history, equipment value, and cargo type. Knowing what affects your premium helps you control costs while maintaining proper protection.
Hot Shot Trucking Liability Coverage Costs
Primary auto liability insurance is mandatory for interstate freight operations regulated by the Federal Motor Carrier Safety Administration (FMCSA). Most hot shot trucking businesses are required to carry $750,000 to $1,000,000 in liability coverage.
Typical annual premium ranges:
$8,000 to $15,000 per year for new ventures
$5,000 to $10,000 per year for experienced operators with clean records
Higher limits, poor driving history, or high-risk freight can increase these costs.
Hot Shot Trucking Cargo Insurance Costs
Motor truck cargo insurance protects the freight you haul. Most brokers or shippers require at least $100,000 in cargo coverage.
Typical cost range:
$1,000 to $3,000 annually, depending on freight type and coverage limits
Hauling specialized or high-value loads—such as machinery or hazardous materials—can significantly raise premiums.
Hot Shot Trucking Physical Damage Costs
Physical damage insurance covers your truck and trailer against collision, theft, fire, or vandalism.
Premium estimates:
3% to 5% of the truck’s value annually
For example, a $70,000 truck may cost between $2,100 and $3,500 per year to insure.
Hot Shot Trucking Risk Factors That Affect Premium
Several factors directly influence hot shot trucking insurance cost:
Driving experience and CDL status
Motor vehicle record (MVR)
Type of freight hauled
Operating radius
Claims history
Credit profile
Truck age and condition
New trucking businesses often pay more during their first year due to limited operating history.
Hot Shot Trucking Ways to Lower Insurance Premiums
You can reduce costs by:
Maintaining a clean driving record
Completing safety training programs
Installing dash cams or telematics
Increasing deductibles
Avoiding high-risk cargo
Working with a specialized broker also helps secure competitive pricing.
Hot Shot Trucking Get a Competitive Quote
Insurance is one of the largest operating expenses in hot shot trucking, but the right coverage protects your business from devastating losses. For customized protection and competitive pricing, , request a quote from Wexford Insurance. Our team understands trucking risk and can structure policies that balance compliance and affordability.
