The best insurance company for hotshot trucking is the one that properly covers you at the best price and allows you to haul the loads that match your business plan. Hotshot trucking involves moving goods in a short time frame and as such, most hauling-for-hire businesses are high-risk and high reward businesses.

The primary aim of this insurance is to protect your hotshot trucking business from third-party liability claims involving bodily injury, physical damage you cause, physical damage to your vehicle, and injury to your person. In the United States, it is illegal in all 50 states to drive without Commercial Auto Insurance and freight brokers and clients will also require specific limits from your hotshot trucking business, which can only be secured on a Commercial Auto policy.

Hotshot insurance sometimes referred to as expediter’s insurance, is developed around the unique risks encountered when smaller trucks (class 3, 4, and 5) are used to haul expedited loads instead of class 8 semi trucks.

Hotshot haulers tend to mostly use heavy duty pickup trucks, usually a dually. You will see a lot of Chevy Silverado 3500s, Super Duty Fords, Ram, and GMC one-ton pickup trucks. These trucks aren’t cheap and they take beating, so adequate physical damage insurance coverage is imperative.

Hotshot truckers also use various trailers to increase their hauling flexibility and expand their number of potential clients. The trailers will also have to be insured too because of their high replacement cost. Many hotshots will use a 20 to 40 foot gooseneck trailer. Deckover trailers and lowboy trailers allow for significantly larger commercial hot shot freight.

When you do find the right insurance policy for your hotshot business, one way to save money is by paying the premium in full instead of in monthly payments. Paying in full could save you 10-20%. So you might drop a $7,000/year policy to $5,600/year just by paying in a lump sum. However, if you are a start-up hotshot business, many would recommend you start out by paying monthly until you are sure of your cash flow.

If you have a pickup truck and can manage tight delivery time windows, hot shot trucking can be lucrative. A hotshot truck driver is typically paid per mile, and your experience and truck capabilities can help you negotiate premium rates and the best mile pay. Hotshot truckers can gross close to $200k per year. The more you can control your expenses, the more you will take home.

While financial strength is always a consideration when picking a carrier, you also want to look at the services that the top insurance companies offer. Risk management resources and 24/7 claims processing can make your life easier. Here are the top insurance companies to consider when acquiring hotshot trucking insurance in the United States.

5 Best Insurance Companies for Hotshot Trucking in 2022

  1. Colonial Insurance Services

This is a family-owned brokerage that prefers to work with commercial truck insurance carriers. Note that they offer key policies for hazmat haulers, including pollution liability, hazmat general liability, and coverage for loading and unloading.

This, coupled with its knowledge of the transportation industry and emphasis on safety, makes Colonial Insurance Services the best choice for hazmat trucking companies. Colonial Insurance is well known in that it offers sample quotes for the different types of insurance programs it offers. In various ways, this is much better than getting a minimum premium.

In addition, it allows you to compare the sample business’s characteristics and policy terms to yours, giving you a ballpark figure to evaluate any quotes you get. In addition to hazmat truckers, Colonial Insurance can find coverage for car carriers, expeditors, or hot shot truckers, reefer, flatbed, container, and agricultural haulers, to name a few.

  1. Progressive Commercial

Note that small business owners looking for ways to save money on their hotshot trucking insurance may benefit from getting quotes with Progressive Commercial. The insurer boasts of eight discounts for qualifying policyholders, including some for bundling policies, paying premiums in full, and signing up for electronic payments.

Business owners with a fleet of vehicles can also get a 5% discount by signing up for Snapshot Proview, a plug-in device that helps Progressive Commercial offer personalized auto rates and fleet management assistance.

  1. CoverWallet

Hotshot trucking business owners who intend to comparison-shop should fill out an application with CoverWallet. As an online broker, CoverWallet submits your information to all available carriers, including top companies like Chubb and Liberty Mutual, and often returns multiple quotes from a single application. If you have questions while completing your application, you can call, chat, or email an insurance advisor for assistance.

  1. Geico

Geico is a renowned commercial auto company for ride-share and on-demand delivery drivers who want one auto insurance policy. Note that the company developed ride-share insurance that’s a hybrid of personal and commercial auto and provides coverage through all phases of a ride-share, including when the driver is driving to pick up or waiting for a passenger. Geico can also write commercial auto insurance for a sole proprietor with a single company car or a fast-growing business with a well run fleet of vehicles and offers fast 24/7 claims service.

  1. Commercialinsurance.NET

Commercialinsurance.NET is a different sort of insurance company. Instead of writing policies, this company tends to refer small business owners to the best carriers, agencies, and brokerages for their particular insurance needs.

As a hotshot trucker, you submit your information, and a representative calls to walk you through your commercial auto insurance quotes. You choose the right one for you, and the representative connects you to the individual who can write the policy. Most business owners can get insured within 30 minutes of submitting their information.

  1. The Hartford

Aside from being perfect for truckers and business owners, the Hartford is a wonderful option for professionals, such as consultants, architects, and engineers who need commercial auto insurance and have excellent driving records. The company includes two programs automatically in its commercial auto premiums: accident forgiveness and fender bender forgiveness.

The first keeps business owners’ auto insurance rates the same after an accident if they have maintained a clean driving record for three years. Meanwhile, fender bender forgiveness coverage protects against glass claims, towing claims, and increased premiums after accidents that cost less than $1,000.

With hotshot insurance costs ranging from $7,000-  $12,000, it really does pay to shop around. Not every truck insurance company welcomes hotshots, so finding the ones that do can be tough. Shopping for multiple quotes from different hotshot insurance companies is even harder and more time-consuming.

Frequently Asked Questions

  1. What Is Hot Shot Trucking Insurance?

Hot Shot Truck Insurance is a commercial auto policy specializing in the expedited transport of cargo with a pickup truck. This insurance protects your business from third-party liability claims involving bodily injury, physical damage you cause, as well as physical damage to your vehicle, and injury to your person.

  1. What Does Hot Shot Truck Insurance Cover?

Hot shot insurance protects your business from third-party liability claims involving bodily injury, physical damage you cause, as well as physical damage to your vehicle, and injury to your person.

  1. What Are Hot Shot Trucking Insurance Requirements?

The FMCSA requires $750,000 in liability insurance coverage to cover others’ bodily injury, physical damage/property damage insurance, and environmental restoration after an accident. However, most load brokers and shippers require $1,000,000.

  1. What Kind Of Insurance Do You Need For Hot Shot Trucking?

You will need primary liability insurance as your base for your hot shot policy. According to the FMCSA, it requires a minimum of $750,000 in liability coverage for physical and property damage, bodily injury, and restoration post-accident.

  1. Hot Shot Trucking Insurance Is It Worth It?

Sure, hot shot trucking insurance is worth it because it will cover your business from third-party liability claims involving bodily injury, physical damage you cause, physical damage to your vehicle and injury to your person. Plus, hotshot offers affordable premiums and excellent coverage, with plenty of separate custom policy additions, like bobtail and cargo insurance.

  1. How Can You Save Money On Hot Shot Trucking Insurance?

There are several ways you can save money on your hot shot trucking insurance and here are some of the ways;

  • Be careful when hiring drivers.
  • Implement safety policies.
  • Do pre-trip vehicle inspections.
  • Don’t drive distracted.
  • Consider using GPS systems.
  • Save your insurance for big losses.
  • Set up a preventive maintenance program.
  • Raise your deductible.
  • Do some risk management.
  • Do some risk management.
  • Shop around to compare prices
  1. How Much Does Hot Shot Trucking Insurance Cost?

Insurance policies for hotshot truckers usually range from $7,000 – $12,000 per year. The average price for hotshot insurance is $10,284.

  1. What Dictates The Price Tag Of Commercial Insurance For Hotshot Trucking?

A variety of factors dictate the price one is to pay. The type of your truck and its model are crucial indicators of the value of your monthly premiums. However, the greatest determinant is the types of insurance covers you need depending on what you are securing against.

  1. Under What Circumstances Is Commercial Insurance For Hotshot Trucking Essential?

The insurance policy is originally designed for entrepreneurs. While on the road, your truck and goods it is ferrying face several risks. To safeguard your client’s property and your asset too, having an insurance policy is a smart idea.

The structure of your hauling should be simple to enable the insurance company to figure out your policy and compensation. If it occurs that you are dealing in goods such as boats, freight, vehicles, and much more within a smaller radius, then commercial insurance for hotshot trucking is the best choice for you.

  1. What Is Commercial Truck Insurance?

Commercial truck insurance is a grouping of specific auto insurance policies designed to meet the needs of trucking businesses. Basic commercial truck insurance policies cover your trucks in the event of an accident. Collision and comprehensive coverage cover most damages from a wide range of perils.

  1. What Affects The Value Of Your Premium?

The first thing is the value of the load on board. The limit that insurance companies authorize is $750,000. Sometimes it can also be as low as $100,000 when the goods are still in the warehouse. Another important factor is the amount of cargo which should be from $5,000 to $100,000.

  1. What Are The Hot Shot Trucking Dot Regulations And Requirements?
  • Keep a driver logbook.
  • Have a fire extinguisher on board.
  • Have reflectors
  • Follow the DoT’s restrictions for driving time and rest time.
  • Have a DoT license plate and load sticker.
  1. How Much Is Tow Truck Insurance?

In 2020, the national average monthly cost for basic tow truck insurance was $450, or approximately $4,500 to $5,000 per year for a single tow truck used for basic roadside and recovery towing.

  1. What Are The Hot Shot Trucking Rates Per Mile?

Generally speaking, hot shot hauling rates are around $1.50 per mile. Some jobs, typically urgent ones, pay as much as $2 per mile, but they are not common. This is balanced by loads with a more typical minimum of $1 to $1.25 per mile.

  1. Why Choose Red Gorman For Truck Insurance?

You should choose Red Gorman for trucking insurance because;

  • Their agents and local trucking insurance experts are licensed and experienced in the industry.
  • You will enjoy exclusive savings
  • your needs come first

Please note that Red Gorman Insurance represents the best trucking insurance companies in Dallas, TX. They also provide auto and business insurance quotes.

  1. Will Your Truck Insurance Policy Cover Theft?

It depends on the type of insurance you have, but comprehensive insurance usually helps cover theft of the car itself, stolen car parts, or damage caused by a break-in (such as broken windows or damaged door locks). Comprehensive coverage is typically required by your lender if you’re leasing or financing your vehicle.

  1. What Is A Reefer Breakdown?

Reefer breakdown or refrigeration breakdown is an optional coverage that can be added to the cargo policy. This coverage protects the policy holder form claims that occur due to malfunctioning of the refrigeration unit, which then leads to spoilage of the goods being transported.

  1. Why Is My Insurance So High?

Common causes of overly expensive insurance rates include your age, driving record, credit history, coverage options, what car you drive, and where you live. Anything that insurers can link to an increased likelihood that you will be in an accident and file a claim will result in higher car insurance premiums.

  1. What Are The Most Commonly Requested Coverage Requirements For Hot Shot?

Some of the most commonly requested coverage requirements include the following;

  • Most brokers request at least $100,000 in cargo insurance, protecting your freight from loss, theft, fire, or damage.
  • While not always required by the insurer or broker, they often recommend you have coverage for physical damage to your pickup and trailer.
  • If you plan on crossing state lines with your load, you will require MC numbers. The limit of coverage needed to file an MCS 90 varies from state to state.
  • If you recently started operations, you will need the MCS-150 and BOC-3 filings.
  • The broker or insurer needs your IRP (International Registration Plan) registration for the pickup truck and the PTI (Permanent Trailer Identification).
  • Some states make it mandatory for drivers to have a CDL, while others don’t have it as a requirement.
  • Most freight brokers require a minimum of $1-million in primary liability coverage for your trucking business.

It is important to note that hotshot trucking insurance doesn’t always require the trucker to have a Commercial Driver’s License (CDL). However, non CDL hotshot insurance tends to come with a higher monthly premium.

  1. What Does Physical Damage Coverage Consist in Hot Shot Insurance?

Physical damage coverage consists of collision and comprehensive coverage. Collision coverage can help repair your truck if you are in a wreck and the truck is damaged. Comprehensive can help cover losses not caused by a collision, for example, fire, theft, vandalism, and animal strike.

  1. What Is The Average Cost For Hot Shot Insurance?

Actually, insurance policies for hotshot truckers usually range from $7,000 – $12,000 per year. The average price for hotshot insurance is $10,284. This is based on one 1-truck and trailer and being new in the business.