Insurance Cost for a Charter Bus: What Impacts Your Premium?
- Feb 12
- 2 min read
Understanding the insurance cost for a charter bus is crucial for transportation business owners. Insurance is one of the largest operating expenses for motor coach companies. Knowing what affects your premium—and what each coverage costs—can help you budget effectively and protect your business.
Average Charter Bus Insurance Costs
On average, charter bus insurance costs range from $12,000 to $25,000 per bus per year, depending on fleet size, passenger capacity, and driver history. Some high-risk or large fleets may see premiums above $30,000 per bus annually. The Federal Motor Carrier Safety Administration (FMCSA) requires carriers transporting 16 or more passengers to carry at least $5 million in liability coverage , which explains why premiums are higher than standard commercial auto insurance.
Coverage Types and Their Costs
A full charter bus insurance policy typically includes the following:
Commercial Auto Liability: Covers bodily injury and property damage. Estimated cost: $8,000–$15,000 per bus annually.
Physical Damage Coverage: Protects your buses against collisions, fire, theft, or vandalism. Estimated cost: $2,000–$6,000 per bus, depending on vehicle age and value.
General Liability: Covers incidents outside of driving, such as accidents at your facility. Estimated cost: $500–$2,000 per year.
Workers’ Compensation: Required if you employ drivers or staff, covering medical expenses and lost wages. Estimated cost: $3,000–$10,000 per bus, depending on the number of employees.
Umbrella or Excess Liability: Adds extra protection beyond your primary policy limits. Estimated cost: $1,000–$3,500 annually.
Factors That Impact Premiums
Several factors influence your motor coach insurance rates:
Driver Experience and Safety: Clean Motor Vehicle Records (MVRs) and experienced CDL drivers lower premiums.
Fleet Size and Vehicle Value: More buses and higher-valued vehicles increase costs, though fleet discounts may apply.
Radius of Operation: Interstate routes increase risk, while local operations may be cheaper.
Claims History: Past accidents or losses raise premiums.
Safety Programs: Regular vehicle maintenance and driver training reduce risk and can lower costs. The National Safety Council provides resources on fleet safety.
Get a Quote from Wexford Insurance
Every charter bus operation is unique. To determine exact costs for your business, it’s essential to get a customized quote. Wexford Insurance specializes in charter bus and motor coach insurance, offering guidance on FMCSA compliance, risk management, and competitive pricing.
Protect your fleet, drivers, and passengers.