Types of Commercial Truck Insurance Explained (2025 Guide)

Commercial trucking is a vital part of the logistics and freight industry, and protecting those trucks requires specialized insurance. If you're a trucker, fleet owner, or freight broker, knowing the different types of commercial truck insurance available in 2025 will help you make smart coverage choices. This guide breaks down every major type of insurance used in the trucking business.

1. Primary Liability Insurance

Legally required for all commercial trucks. It covers bodily injuries and property damage that you cause to other people in an accident. Without this, you can’t operate legally.

2. General Liability Insurance

Covers accidents that happen off the road — for example, if you damage property while unloading cargo at a customer site, or someone slips and falls at your business location.

3. Physical Damage Insurance

Covers your truck and trailer if they’re damaged in an accident, natural disaster, fire, or vandalism. It includes:

• Collision Coverage: For accidents involving another vehicle or object
• Comprehensive Coverage: For damage not caused by a collision

4. Motor Truck Cargo Insurance

If you haul goods or materials, this coverage protects the cargo you're responsible for. If it's damaged or stolen during transport, your policy will help cover the loss.

5. Non-Trucking Liability (NTL)

Protects your truck when you're not under dispatch or carrying a load. It’s useful when you’re using the truck for personal reasons.

6. Bobtail Insurance

Often confused with NTL, bobtail coverage applies specifically when you’re driving your truck without a trailer — for example, after dropping off a load and heading to the next assignment.

7. Trailer Interchange Insurance

If you're hauling trailers you don’t own under a trailer interchange agreement, this policy protects you in case the trailer is damaged in your possession.

8. Occupational Accident Insurance

For owner-operators or independent drivers who aren’t covered by workers’ compensation, this coverage helps with medical bills, disability, and lost income from on-the-job injuries.

9. Workers’ Compensation

Legally required in many states for businesses with employees. It covers medical care, rehabilitation, and lost wages if a driver gets hurt while working.

10. Reefer Breakdown Insurance

If you haul perishable cargo in refrigerated trucks, this insurance protects against losses if the refrigeration system fails and cargo spoils.

11. Hazmat Insurance

Required for trucks transporting hazardous materials. It offers higher liability limits and specialized protection because hazmat transport involves more risk.

12. Downtime Coverage

If your truck is in the shop for repairs, this policy helps cover lost income during that period.

13. Rental Reimbursement

Pays for a temporary rental truck so you can keep working if your regular truck is being repaired after an accident.

14. Gap Insurance

If your truck is totaled and you owe more than it's worth, gap insurance pays the difference between the loan amount and actual value.

15. Uninsured/Underinsured Motorist

Protects you if you're hit by a driver who has no insurance or insufficient coverage. It helps with medical bills, lost wages, and vehicle repairs.

Choosing the Right Combination of Coverage

Every trucking operation is unique, so your insurance policy should reflect your specific risks. Here are a few examples:

• If you haul food: You’ll want reefer breakdown + cargo + physical damage
• If you haul hazardous materials: Hazmat coverage + primary liability + physical damage
• If you operate a fleet: Workers’ comp + general liability + trailer interchange
• If you’re an owner-operator: Occupational accident + non-trucking liability + cargo

What Factors Affect Your Insurance Rates?

• Driving history (accidents, violations)
• Type of truck and trailer
• Cargo type (hazardous, refrigerated, etc.)
• Location and distance traveled (local vs. OTR)
• Business size and revenue

Conclusion

The world of commercial truck insurance can be complex, but understanding the types of coverage available empowers you to build the right policy. Whether you’re an individual trucker or run a large fleet, making the right insurance choices can save you thousands and protect your livelihood. In 2025, it's more important than ever to stay fully insured.