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Insurance Commercial Insurance

Hot Shot Insurance

Hot shot trucking is a type of shipping business, which uses traditional pickup trucks to move cargo quickly and efficiently from one point to another. These businesses can be profitable, but they also come with high risk, not only for the truck driver but also to shippers hiring these drivers.

To protect themselves — as well as their businesses — hot shot truckers need ample insurance to cover potential injuries (to themselves and others), as well as various forms of liability. This guide will cover these insurance options, their costs, and how much truckers should consider before hitting the road.

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Hot shot truck insurance requirements

As a hot shot trucker, you’ll need the auto insurance required by your state, the Federal Motor Carrier Safety Administration, and the brokers and shippers you work with.

Commonly, this will include:

  • Anywhere from $750,000 to $5 million in liability insurance coverage, which covers bodily injury, property damage, and environmental restorations when necessary
  • At least $5,000 in cargo insurance per truck and $10,000 per occurrence
  • Damage coverage for your truck and trailer

You will also likely need a commercial driver’s license from your state, as well as a Department of Transportation number and Motor Carrier number if you plan to cross state lines. You will need to fill out various forms with the FMCSA, too.

What does hot shot trucking insurance cover?

Hot shot trucking insurance protects you, your truck, and your business in the event of an accident or loss. It also protects the cargo and freight you transport using your vehicle.

Here are just a few of the coverages you’ll get with hot shot truck insurance:

  • Damage to your truck and trailer: If your vehicle or trailer is stolen, vandalized, or damaged in a fire or collision, this coverage would pay to repair or replace it. In some cases, this coverage may pay you for downtime when your truck is out of commission and unavailable for use.
  • Damage to other property: If another vehicle or piece of property is physically damaged in an accident you cause, your insurance will help cover the costs to repair or replace those items.
  • Injury to others: If someone is hurt in an accident you caused, this coverage will pay their medical bills, lost wages, and other expenses.
  • Legal fees: If you end up facing legal problems due to an accident you were involved in or damage your vehicle caused, your liability coverage can help cover the costs to deal with it.
  • Damaged or lost cargo: This one protects the freight and cargo you carry, covering the costs to replace any damaged items during transport or in an accident. Some policies will also cover “earned” freight, which compensates the client if you cannot deliver a load due to an accident or other issue.

The amount of coverage you’ll need will depend on your state, the value of the freight you plan to haul, how often you drive, and many other factors. Every hot shot trucking business is different, so you’ll want to customize a policy that’s specific to your plans as a driver and business owner.

Where to find hot shot insurance

When you’re on the hunt for commercial hot shot insurance, Coverwallet is an excellent place to start. The commercial insurance agency can give you quotes from many of the country’s biggest insurers, including Liberty Mutual, Progressive, and more. 

The company has an A+ from the Better Business Bureau.

Receive quotes from multiple insurance carriers, available 24/7

  • Utilize CoverWallet’s award-winning intelligent assessment system to buy a tailored policy
  • Update payments, manage claims, request certificates of insurance, and more through one online wallet

>> Read More: Best commercial truck insurance companies

How much does hot shot insurance cost?

The cost of hot shot trucking insurance varies depending on how much coverage you need, your location, and many other factors. In general, these policies range anywhere from $6,000 to $12,000 per year — per truck.

Here are just a few of the items that could impact the cost of your policy:

  • Your coverages and how much you need: The more coverage you need, the more it will cost. (Though more coverage means added protection should a serious accident or loss occur.)
  • Your credit score: Typically, a better higher score qualifies you for better rates.
  • Your deductibles: High-deductible policies will cost less than those with lower deductibles.
  • Your truck: The age, make, model, and class of your truck will play a role, too.
  • Your experience: Your history as a driver can also influence your costs. The more experience you have in the business, the better rate you’ll likely receive.

Finally, the insurance company you choose will also matter. That’s why it’s essential to shop around and compare policy options from a variety of insurers. Doing so will ensure you get the most coverage at the best possible rate.