Truck Insurance Coverage Guide: What Each Policy Covers and Why You Need It

If you’re an owner-operator, manage a small fleet, or are just getting started in the trucking industry, understanding truck insurance coverage is not optional—it’s essential to stay compliant, protect your business, and avoid costly losses.

In this guide, we break down each type of commercial truck insurance, what it covers, and why choosing the right coverage matters.

Why Truck Insurance Coverage Matters

Commercial truck insurance is more than a legal requirement—it’s your financial protection against:

• Serious accidents

• Lawsuits and liability claims

• Cargo loss or damage

• Total loss of your truck

• Broker and shipper contract issues

The FMCSA requires minimum coverage to operate, but in real-world trucking, minimum coverage is rarely enough. Auto Liability Insurance (Required)

What does it cover?

• Bodily injury to others

• Property damage

• Legal defense and settlements

Why do you need it?

Auto liability is mandatory to activate and maintain your DOT and MC authority.

Common limits:

• $750,000 (federal minimum)

• $1,000,000 (most brokers require this)

Without auto liability, you cannot legally operate. Cargo Insurance

What does it cover?

• Damage or loss of freight

• Theft, rollover, or accidents

Who needs it?

• Owner-operators

• Small fleets

• Any carrier hauling brokered freight

Typical limits:

• $100,000

• $250,000

Most brokers will not dispatch loads without active cargo insurance. Physical Damage Insurance

What does it cover?

• Collision damage

• Theft

• Fire

• Vandalism

• Weather-related damage

When is it essential?

• New or financed trucks

• Leased equipment

• When replacing the truck out-of-pocket is not an option

Without this coverage, repairs or replacement come directly from your pocket. General Liability Insurance

What does it cover?

• Injuries or damages outside driving

• Incidents at loading docks or yards

• Property damage during loading/unloading

Why is it important?

Many shippers, warehouses, and brokers require it for access.

Not having general liability can mean losing contracts. Bobtail / Non-Trucking Liability Insurance

What does it cover?

• Driving without a load

• Personal use of the truck

• Off-dispatch operation

Who needs it?

• Owner-operators leased to a motor carrier

• Drivers not always “under load”

This does not replace auto liability—it only fills coverage gaps.

Workers’ Compensation / Occupational Accident

What does it cover?

• Driver injuries

• Medical expenses

• Temporary disability

Why is it important?

• Required in some states

• Protects your income if you’re injured

• Reduces exposure to lawsuits

What Truck Insurance Coverage Do You Actually Need?

Coverage depends on:

• Type of freight

• Routes (local, interstate, cross-border)

• Driver experience

• Broker and shipper requirements

No two trucking operations are the same, and coverage should be customized—not generic.

Common Mistake: Buying the Cheapest Policy

Many truckers make this mistake:

❌ Incomplete coverage

❌ Low liability limits

❌ Dangerous exclusions

The result: denied claims, uncovered losses, and financial stress.

How RoadKing Insurance Agency Helps

At RoadKing Insurance, we:

• Specialize exclusively in trucking insurance

• Analyze your real operation

• Explain every coverage clearly

• Balance cost, compliance, and protection

📞 Fast, transparent quotes — English & Spanish support available. Call or text us: (619) 866 3876