Insurance is one of the largest fixed costs for owner operators, and understanding what you actually need helps avoid both gaps in coverage and unnecessary spending.
Primary Liability: Required by the FMCSA, covers damage or injury you cause to others. Minimum requirements vary by cargo type (50,000 for general freight, up to million for hazmat).
Physical Damage (Bobtail/Cargo): Covers damage to your own truck and trailer. Not federally required but almost always required by lenders if you're financing your truck.
Cargo Insurance: Covers the freight you're hauling if damaged or lost. Often required by brokers and shippers before they'll give you loads — typical minimum is 00,000.
Non-Trucking Liability (Bobtail): Covers you when driving the truck for personal use or between loads, not under dispatch.
| Coverage Type | Typical Annual Cost |
|---|---|
| Primary Liability | $5,000–$15,000 |
| Physical Damage | $2,000–$6,000 |
| Cargo Insurance | $800–$2,500 |
| Total (new authority) | $10,000–$20,000+ |
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