North Dakota Commercial Truck Insurance

If you will be operating a commercial truck in North Dakota, you will need to carry North Dakota truck insurance. This guide will go over the insurance requirements for commercial trucks in ND, types of truck insurance, costs, and more. We will also tell you where you can purchase North Dakota truck insurance with competitive rates and coverage.

North Dakota Insurance Requirements for Commercial Trucks

How much insurance do you need at a minimum in order to operate a commercial truck in ND?

Progressive states, “North Dakota state law requires all commercial auto policies to have a minimum liability limit of $25,000 per person, $50,000 per accident for bodily injury and $25,000 for property damage (i.e., 25/50/25). Some policies are required to carry higher limits based on the types of vehicles they insure.”

The North Dakota government states, “Commercial vehicles weighing more than 20,000 pounds are not required to carry uninsured and underinsured motorist coverage. Commercial vehicles used to haul for hire may be subject to the Federal Motor Carriers Act of 1980. Depending on the cargo hauled, the amount of insurance required varies from $750,000 to $5,000,000. Hazardous cargo will require higher limits.”

Keep in mind that along with meeting legal requirements, you also need to insure your commercial trucks for reasons of safety and operating your business smoothly.

What Types of Truck Insurance Do You Need in ND?

Below are some types of commercial truck insurance you may need in North Dakota.

• Auto liability: If you get into an accident and it is determined that you are at fault, your auto liability policy will help pay the costs of injuries or damages to other parties (not yourself or your vehicle).

• General liability: This is a general type of North Dakota business insurance that covers other people and their property when they are on your commercial property.

• Physical damage: This type of policy is also referred to as comprehensive and collision. It is for covering your vehicle if it is damaged in an accident or by a weather event.

• Reefer breakdown: If you drive a reefer, sometimes, the refrigeration equipment may fail. If that happens, this coverage can pay the cost to repair or replace it. It also can cover the cost of lost cargo as a result of the malfunction.

• Motor truck cargo: This type of coverage covers general cargo that you are hauling in case it is lost, damaged, destroyed, etc.

• Non-trucking liability: If you are not hauling freight at the time of an accident or damage, non-trucking liability coverage kicks in. For instance, if you are using the truck to run a personal errand, this coverage would apply.

• Non-owned and trailer interchange: If you ever use third-party or co-op trailers, you can use this type of policy to cover them while you are using them.

• Excess liability: If you want to cover above the limit of your primary liability policy, you can get excess liability coverage.

• Workers’ compensation: If you employ even one person at your business, you are legally required to pay for workers’ compensation. This insurance covers your employee’s medical costs and time out of work if they get sick or injured on the job.

• Occupational accident: If you are an owner-operator, and you want to cover yourself in a manner similar to workers’ comp, you can get occupational accident insurance.

Average Annual Costs for Truck Insurance in North Dakota

On average, you can expect to pay around $14,355 per year for commercial truck insurance in North Dakota. This is assuming you are insuring just one truck, and that you are only purchasing liability insurance, physical damage insurance, and cargo insurance.

That said, there is a range in the cost of commercial truck insurance premiums in this state. At the lower end, you might pay closer to $11,500. At the upper end, you could pay closer to $17,000.

If you add in more types of insurance coverage, your costs could be even higher. And of course, if you have a larger fleet, you will pay more each year for insurance.

Here is a quick overview of some of the key factors that can drive your commercial truck insurance premiums up or down in North Dakota:

• Type(s) of vehicle(s): Some types of commercial trucks may cost more to insure than other types of commercial trucks. Specialized vehicles, for example, may carry additional costs. The size and weight of your vehicle(s) will impact rates too.

• Fleet size: The more vehicles are in your fleet, the higher your premiums will be.

• Nature of cargo: The type of cargo you are hauling as well as its value can have an impact on your rates. For example, particularly expensive freight will be more costly to insure in transit. Hazardous materials will be as well, and so will goods that can perish. Livestock will also cost more to insure, since there is so much that can go wrong.

• Routes and geography: If you are hauling cargo within a small area that is relatively safe, your insurance premiums will be lower than if you haul your freight on especially hazardous roads, or longer, more elaborate routes.

• Payroll: The more people you have on your payroll and/or the higher their salaries, the more you will need to pay for workers’ comp.

• Driving record: Insurance companies consider your driving record when they are doing their underwriting. A clean record will help you qualify for better rates.

• Experience in commercial trucking: If you have been driving commercial trucks for years or have extended experience operating a transportation company, you pose less of a risk than a customer who has zero experience with commercial trucking, or very limited experience. This may qualify you for more competitive rates.

• Discounts: Insurance carriers commonly offer a variety of discount opportunities to qualifying applicants for North Dakota truck insurance. You might only find out about these discounts if you ask. So, be proactive and do that.

• Underwriting: The underwriting guidelines that determine the rates you qualify for (and if you qualify) are different for every insurance company. This is why two different carriers may give you different quotes even with all other factors being the same. For this reason, you should request quotes from more than one insurance company before you choose one for your commercial truck insurance.

There may be additional factors that will affect the costs to insure your commercial trucks as well.

Where to Get North Dakota Commercial Truck Insurance

You’ve had a chance to learn about North Dakota truck insurance requirements, costs, and the various types of insurance you may need. To save you time hunting down the most competitive rates, we have put together a list of our top recommended carriers. Click on any of the links below for your custom quote.