Owning or running a truck business in Alberta, Canada, requires commercial truck insurance. So for any mishaps, any losses and injuries will be covered by the insurance coverage.
So are you a truck business owner? Wondering how much commercial truck insurance costs in Alberta? The costs tend to vary based on your insurance coverage and other factors. In the following article, we will discuss about the commercial truck insurance cost in Alberta.
Before jumping straight into details, let’s know what is meant by this commercial truck insurance:
What Does Commercial Truck Insurance Cost Mean?
Commercial truck insurance is a group of specialized auto insurance programs specifically designed to meet trucking enterprises’ demands. It will protect your truck by covering the expenses to repair damages in case of an accident.
Besides, protecting your company from additional dangers and specific liability problems is among the options for specialized commercial vehicle insurance. Collision and comprehensive coverage provide a large portion of protection against various hazardous damages.
As a result, when you move expensive or time-sensitive goods across the country, you can ideally protect your investment by adding coverage for your cargo with a reasonable supplement.
After basic and specialized coverage, you can expand your policy to include non-trucking options. Consider non-trucking to prevent mishaps when a truck isn’t hauling products. For example, coverage for occupational accidents safeguards your drivers in the event of accidental demise or impairment.
What is the Average Commercial Truck Insurance Cost in Alberta?
Truck insurance is a must thing for you if you have truck ownership. The average cost of truck insurance is around $9000 to $ 15000 annually including all insurance-related costs in Alberta.
Note that driving records heavily influence the cost of insurance. So you might have to pay more than usual if you or your driver have a poor driving record, increasing the amount to $30,000 annually. However, this price will vary from insurance to insurance, based on your coverage level and your driving record. There are 5 different kinds of commercial trucking insurance available in Alberta. Here is the Insurance Cost Table-
Average Cost of Different Types of Commercial Truck Insurance in Alberta
| Truck Insurance Name | Commercial Truck Insurance Cost |
| Primary liability insurance | $5000 to $7000 |
| General liability insurance | $500 to $600 |
| Physical damage insurance | $1,000 to $3,000 |
| Occupational accident coverage | $1600 to $2200 |
| Umbrella policy | $500 to $700 |
Let’s discuss about them .
Types of Commercial Truck Insurance Cost in Alberta
There are 5 different kinds of commercial trucking insurance available in Alberta. Let’s know about them along with their costs.
1. Primary liability insurance
Primary liability insurance is the initial category of insurance. You will have to pay between $5000 and $7000 for this kind of insurance. With this amount, you will be covered for any harm you might do while driving.
2. General liability insurance
General liability insurance is the second type of insurance, with an annual cost of $500–$600. Compared to the other kinds of insurance, they are pretty affordable, especially for their benefits.
It provides coverage for any occurrence not insured by your primary liability or physical damage policy. This includes:
- Any additional damages that occurred as a result of the incident.
- The truck’s cargo coverage.
- It may also provide the trailer interchange policy in particular circumstances.
- Takes care of the property damages as a consequence of the collision.
3. Physical damage insurance
Physical damage insurance covers any harm to your car resulting from robbery, vandalism, crashes, or adverse weather—the insurance costs between $1,000 to $3,000.
4. Occupational accident coverage
Occupational accident coverage benefits work-related injuries, including compensation for medical expenses and lost earnings. The coverage for work-related accidents ranges from $1600 to $2200.
5. Umbrella policy
You can purchase umbrella coverage that includes general liability, car liability, and workers’ compensation. The expense of this insurance is between $500 to $700.
Read more about: Average Car accident Settlement Alberta
Why Commercial Truck Insurance is a Must for You?
As per the Federal Motor Carrier Safety Administration (FMCSA), you must have the necessary insurance coverage to drive on public roadways.
However, to obtain insurance, having a motor carrier number is mandatory. Most importantly, if you wish to operate a trucking company, an insurance certificate is necessary for its smooth and effective operation. The results could be highly catastrophic if you don’t have enough insurance.
Again, you might occasionally use several drivers to operate your trucks. In that situation, it is preferable to have well-trained drivers with spotless driving histories.
Because having this kind of driver helps to save money along with boosting the company’s brand. As a result, it will become much easier for you to obtain truck insurance, eventually reducing the overall cost.
What Determines the Truck Insurance Costs? [3 Key Factors to Consider]
The price of your vehicle insurance depends on several things. To determine what kind of coverage you need and how much you must pay, companies will look at the operations of your business and the industry:
1. The truck’s model
A heavy and powerful truck will certainly have higher insurance costs. But on the other hand, a lightweight pickup truck is simpler to drive and less likely to wreck property than a heavy truck. So the insurance cost will be lower. Also, the cost of repairs will increase with the truck’s price, with your insurance premium rates escalating.
2. Cargo’s size
Next up, your truck’s and cargo size will affect the insurance risk rating, affecting the cost. The larger it is, the more it is expected to cause damage in an accident. Hence the insurance cost will be higher.
3. Driving radius
The higher the rate, the more truck drivers will make the most of their vehicles for long distances. Long-haul trucking entails sitting behind the wheel for an extended period, ultimately leaving you all tired and increasing the probability of a collision. Hence, the more the driving radius, the higher the insurance cost.
Things to Consider About Commercial Truck Insurance in Canada
Before having commercial truck insurance, consider the following questions:
- If any of the tools are stolen from my truck, can they be replaced or not?
- If my truck gets involved in an accident and cannot be operated, is it feasible to get loss of income coverage?
- Are attached devices also protected?
- What degree of liability protection is necessary?
- What is meant by accident benefits, and how much should I invest in these kinds of benefits, depending on my age, financial situation, and other variables?
How Can You Reduce Your Truck Insurance Costs in Alberta?
You can ideally reduce the overall cost of your insurance in several ways. Maintaining a clean driving record is one of the simplest and most effective ways to save money.
If you have more than one person operating your vehicle, you can adequately teach and train these new drivers. So they will know the exact tactics on how to quickly prevent mishaps and accidents from happening.
The CDL (commercial driving license) experience is another crucial element that might enable you to save some cash. If you have CDL expertise, you can reduce the cost of your truck insurance by a sizable amount. Besides, paying the full annual insurance premium also enables you to save money.
So, if your business can afford it, you can choose this course of action to save money over time. Such as, here, with a single payment, you can save up to 20% on your car insurance compared to the monthly installments.
However, the price of your insurance premiums will also depend on your deductibles. This implies that you will be held more financially accountable if any problem occurs at any moment in time. Conversely, when the danger to the insurance provider lowers, so will your monthly premiums.
Therefore, raise the deductible if you want to reduce your premium over time.
To Conclude
Paying and dealing with this insurance expense can sometimes seem hassle. But, if you have sound knowledge, especially in estimating the cost and how things work out, handling all insurance-related concerns will be much simpler.
However, take legal support if you face any confusion or issues related to this insurance. They can guide you in the right direction with their expertise in the field. That’s all from the discussion regarding the commercial truck insurance cost Alberta.
FAQs
Check out the below queries in case you have any doubts in your mind to clarify:
How much is commercial truck insurance cost in Canada?
With a good driving record, you should budget between $9000 to $15,000 annually for all insurance-related costs if you own and drive a truck. However, based on the coverage you need and your driving record, you may pay as much as $30,000 per year.
Owner-operators who lease their vehicles to motor carriers should budget between $2,000-$4,000 for insurance. But, of course, several factors will affect the premium cost.
Are 4×4 more expensive to insure?
Yes, because of the truck’s increased power, 4×4 or four-wheel-drive trucks typically cost more than ordinary trucks. The basic rule is that the cost of insurance rises with engine power.
Which insurance is best for trucks in Alberta?
If price isn’t a concern for you, go with the primary liability insurance and physical damage insurance. Both of them are typically considered the best insurance for trucks. However, you can also purchase occupational insurance, which will pay for the loss of income.
Why is my truck insurance cost more?
As mentioned, several variables affect truck insurance, such as the car’s weight, the truck’s size, and the cargo carried by truck are some of the variables that affect the price. For example, if you have a truck heavier in weight with 4 wheels, it will eventually cost more than regular automobiles.
How can I lower my commercial truck insurance cost?
Hiring experienced drivers with clean driving records is one of the best and most effective methods to reduce commercial truck insurance costs. Another tactic to lower insurance costs is having new and safe trucks operating on the road.