Hotshot Trucking Insurance Guide – What You Need and What It Costs

Hotshot Trucking Insurance Explained

Insurance is your second biggest expense after fuel — and the one most new operators get wrong. Underinsure and you’re one accident away from losing everything. Overinsure and you’re bleeding money monthly. Here’s exactly what you need.

Required Insurance Types

Auto Liability (Required — $1,000,000 minimum)

This covers damage and injuries you cause to others in an accident. The FMCSA requires a minimum of $750,000 for non-hazmat interstate carriers, but most brokers and shippers require $1,000,000. Just get the million — it’s the industry standard and opens more load opportunities.

Cost: $400-800/month for new operators

Cargo Insurance (Required — $100,000 typical)

Covers the freight you’re hauling if it’s damaged or destroyed. Most brokers require $100,000 minimum cargo coverage. Some high-value loads require more.

Cost: $100-300/month

Physical Damage (Highly Recommended)

Covers YOUR truck and trailer if damaged in an accident, theft, fire, or weather event. Not legally required but if you have a loan on your truck, your lender will require it.

Cost: $150-400/month depending on vehicle value

Optional but Smart Coverage

Bobtail/Non-Trucking Liability

Covers you when driving without a load (not under dispatch). If you’re driving home empty and cause an accident, your primary auto liability may not cover it depending on your policy.

Cost: $30-75/month

Occupational Accident Insurance

Since you’re an independent contractor (not an employee), you don’t have workers’ comp. Occupational accident insurance covers your medical bills and lost income if you’re hurt on the job.

Cost: $75-200/month

Total Monthly Insurance Cost

Realistic budget for a new hotshot operator:

• Minimum coverage: $600-1,100/month
• Recommended coverage: $800-1,500/month
• Full coverage: $1,000-1,800/month

How to Get Cheaper Insurance

1. Clean driving record — Tickets and accidents destroy your rates. Drive clean
2. Time in business — Rates drop significantly after 1-2 years with no claims
3. Higher deductibles — Raising your deductible from $1,000 to $2,500 can save $100+/month
4. Shop around — Get quotes from at least 3-5 commercial truck insurance companies
5. Bundle policies — Same company for liability, cargo, and physical damage usually gets a discount
6. Safety record — Dash cams and documented safety practices can help your case

Top Insurance Companies for Hotshot

• Progressive Commercial
• National Interstate
• Canal Insurance
• Great West Casualty
• Sentry Insurance

Use an independent commercial truck insurance agent — they can quote multiple companies at once and find you the best deal.

Common Insurance Mistakes

• Cheapest policy possible: Low premiums often mean terrible claims service and coverage gaps
• Not reading the policy: Know exactly what’s covered and what’s excluded
• Lying on applications: Insurance fraud voids your policy entirely. Not worth it
• Forgetting to update: If you change trucks or trailers, update your policy immediately
• No dash cam: A $100 dash cam can save you thousands in disputed claims

Bottom Line

Insurance is the cost of doing business. Budget for it, shop smart, and drive clean. Every claim-free month builds toward lower rates in the future. Think of it as an investment in your business surviving long enough to become profitable.