Typically, the annual cost for hot shot insurance ranges between $7,000 and $12,000. The average cost per year is $10,284 for the businesses that are new and have one truck and trailer.
Note that multiple factors can impact your hot shot insurance rates. That means the cost will vary from person to person depending on their unique situation. Also, the insurance company you go with can affect your rates as well. Therefore, it’s best to shop around for multiple quotes.
In general, the following factors affect the cost of your hot shot insurance:
- The value of your trailers and trucks
- How long you’ve been in business
- What you haul
- Your limits and deductibles
- The types of coverage you need
- Your hauling radius
- The experience and age of your drivers
One of the best ways to reduce the cost of your hot shot insurance is to seek help from a reputable insurance agency. With the help of an agent, they can shop around for you and find you the best deals.
In this article, we’ll discuss the cost of hot shot insurance, ways to save, and what coverages you’ll need. Let’s begin.
Ways to Reduce the Cost of Your Hot Shot Insurance
The goal of every business is to reduce costs and grow profits. Luckily for you, there are ways you can reduce the costs of your hot shot truck insurance.
We understand how costly trucking insurance can be, so here are some tips to lower your rates:
- If you have enough cash reserves, increase your deductible
- Choose a limit that’s realistic and works for you
- Adjust your policy to reflect your hauling radius (the fewer miles you travel, the less risk you pose)
- Pay your premium in full if possible
- Shop around once a year
- Ask about discounts
- Invest in training and follow safety protocols
- Hire experienced drivers
The Coverages You Need for Your Hot Shot
The cost of your premium for hot shot trucking insurance is determined by the range of coverages bundled into your policy. Given the distinct nature of hot shot operations, which often involve expedited deliveries with smaller, more maneuverable trucks, it’s essential to tailor your insurance to cover the specific risks associated with this type of service.
Some of the components include:
Liability
According to FMCSA, all truckers are required to carry at least $750,000 in liability. However, this won’t typically cut it when it comes to hot shots. If you pick up loads from shippers they’ll typically require you to have a minimum of $1,000,000 in liability. If you fail to have the required insurance then the shipper won’t release the load.
Physical Damage
This protects your own truck and trailer against damage from accidents, theft, vandalism, and other perils. It’s crucial for hot shot truckers due to the constant travel and exposure to various risks.
Cargo
The federal government sets the minimum cargo insurance requirement at $5,000, but for hot shot trucking, this minimum is rarely enough. Most shippers and clients expect truckers to carry a cargo insurance limit of at least $100,000. This higher limit ensures that the value of the transported goods is adequately protected, which is especially important given the often high-value or time-sensitive nature of hot shot deliveries.
Summing Up
If you’re a hot shot truck driver then you need insurance! There are many things to consider and the insurance can be quite expensive compared to other truck types. However, the information provided should give you a good idea of the cost to insure your hot shot truck.
