Truck and Trailer Insurance FAQ

Yes — this is the most common coverage gap in trucking. Commercial auto liability covers damage to OTHERS. Physical damage for your own truck and trailer must be specifically added. Your trailer must be scheduled on the policy by VIN for physical damage coverage to apply. Without it, if your trailer is damaged in an accident or stolen, there's no coverage. We always review your full equipment list at quote to make sure everything is scheduled.

We can schedule physical damage coverage on virtually all commercial trailer types: flatbeds, gooseneck trailers, bumper-pull trailers, enclosed/box trailers, dry van trailers, refrigerated (reefer) trailers, step decks, lowboys, drop decks, and specialty equipment trailers. Multi-trailer fleets are handled under a single policy schedule — no need for separate policies per trailer.

Trailer interchange covers physical damage to trailers you're operating under a written interchange agreement — trailers you don't own but are contractually responsible for. Without trailer interchange, if you damage a non-owned trailer you're hauling under a broker or carrier agreement, you're fully liable for the repair cost. Note: this coverage requires a written interchange agreement; verbal agreements don't qualify.

Yes — equipment breakdown (also called boiler and machinery) coverage specifically includes refrigeration unit failures. Standard physical damage policies exclude mechanical and electrical breakdown; equipment breakdown fills that gap. A reefer compressor failure can cost $15,000–$40,000 in repairs alone, plus potential cargo spoilage claims. We strongly recommend equipment breakdown coverage for any reefer trailer operation.

FMCSA requires a minimum of $750,000 for non-hazmat freight under 10,001 lbs GVWR. Hazmat minimums range from $1,000,000 to $5,000,000 depending on commodity. Many brokers now require $1,000,000 CSL as a standard requirement regardless of FMCSA minimums. We typically recommend starting at $1M to keep all load board and broker options open.

Yes — we handle the BMC-91 electronic filing at bind at no extra charge. Once your policy binds, we file directly with FMCSA and your authority activates once the filing is accepted (usually within 24 hours). For intrastate Texas operators, we also handle TxDOT filings. For California operators, we handle state-required filings as well.

Yes — commercial auto policies written for interstate commerce follow the vehicle regardless of state. Your liability, physical damage, and cargo coverage apply in all 50 states. FMCSA authority covers you federally across all interstate routes. Some states have specific filing requirements (CA, TX) that we handle as part of the binding process.

A complete owner-operator package (liability + cargo + truck and trailer physical damage) typically runs $600–$1,200/month for a single unit. Fleet programs for 2+ units are often lower per unit. Key cost factors: driving record (most important), years of authority history, truck and trailer values, cargo type, annual mileage, and home state. New ventures under 2 years pay a significant surcharge that phases out after 24 months of clean operation.

Trailers 15+ years old may have limited carrier appetite for ACV (actual cash value) physical damage. For older trailers, we typically write stated value coverage — you declare the insured value, and settlement is based on that stated value minus depreciation at claim time. For high-value older trailers with recent refurbishments or specialty equipment, agreed value coverage (no depreciation at claim) is sometimes available.

Yes — fleet programs for 2+ units are a specialty. One policy, unified renewal, simplified adding/removing units mid-term, and typically lower per-unit rates vs. individual policies. Fleet programs also simplify COI issuance and driver management. We've set up programs from 2-unit hot shot operations to 20+ unit flatbed and reefer fleets.