Introduction
When it comes to insuring your commercial truck or fleet one of the most critical decisions is whether to go with liability only insurance or full coverage insurance. Each option offers different levels of protection and your choice can directly impact your business operations financial risk and compliance status.
In this guid we break down the differences between liability truck insurance and full coverage truck. Insurance explore their pros and cons and help you determine which type best suits your business in 2025 and beyond.
What It Covers
- Bodily Injury Liability Medical bills lost wages and legal costs for other parties
- Property Damage Liability Repairs or replacement of other people property or vehicles
What It Does NOT Cover
- Damage to your own truck
- Your medical bills
- Theft vandalism fire or natural disasters
Full Coverage Truck Insurance
Full coverage insurance includes liability protection plus additional coverage that protects your own vehicle even if you are at fault or the damage is due to other factors.
What It Covers
- Everything in Liability
- Collision Coverage Pays for repairs to your truck after an accident
- Comprehensive Coverage Covers theft fire vandalism weather damage etc.
- Uninsured Underinsured Motorist Protects you if the other driver does not have enough insurance
- Medical Payments or Personal Injury Protection (PIP)
Side by Side Comparison
| Feature | Liability Only | Full Coverage |
| Covers Other Vehicles | ✅ | ✅ |
| Covers Other People Injuries | ✅ | ✅ |
| Covers Your Vehicle | ❌ | ✅ |
| Covers Theft or Vandalism | ❌ | ✅ |
| Covers Weather Damage | ❌ | ✅ |
| Legal Requirement | ✅ (minimum) | ❌ (optional) |
| Monthly Cost | Lower | Higher |
| Best For | Older trucks tight budgets | Newer trucks high value cargo |
Cost Comparison
Insurance premiums vary based on:
- Truck value and type
- Driving history
- Location and routes
- Cargo type
- Coverage limits and deductibles
Average Monthly Premiums in 2025
- Liability Only $600 $1200 month
- Full Coverage $1500 $3000 month or more
Keep in mind that full coverage may seem more expensive but it can save you thousands in out of pocket repair costs in the event of an accident or disaster.
Liability Only Insurance Makes Sense
Opting for liability only coverage can be a smart decision in some cases
Good Fit If
- Your truck is older and has low market value
- You can afford to self insure for repairs
- You are not financing or leasing the vehicle (most lenders require full coverage)
- You operate in low risk areas or run short hauls
Risks to Consider
- If your truck is totaled you receive no payout to replace it
- One accident or theft could put you out of business
- Your cargo and equipment are not protected
Full Coverage Insurance Is Worth It
Best For
- New trucks or expensive rigs
- Leased or financed vehicles
- Long-haul operations across multiple states
- Hauling valuable cargo
- Operating in areas prone to weather events or theft
Financial Peace of Mind
Though full coverage has higher premiums it protects your business assets helps you recover quickly. After an incident and may even offer deductible waivers rental reimbursement and towing.
Legal Requirements
The FMCSA (Federal Motor Carrier Safety Administration) requires minimum liability insurance for commercial trucks operating interstate
Federal Minimums
- $750000 General freight
- $1000000 Oil transport
- $5000000 Hazardous materials
However comprehensive and collision coverage are NOT legally required unless you
- Lease or finance the truck
- Haul sensitive cargo requiring special insurance
Some states may impose additional rules for intrastate operations so check with your state Department of Transportation (DOT).
Case Study
Example
Ahmad is an owner-operator in Texas with a 2022 Freightliner Cascadia worth $140000. He runs OTR loads across Texas Oklahoma and New Mexico.
Liability-Only
- Monthly premium $850
- If truck is damaged or stolen $0 payout
Full Coverage
- Monthly premium $2200
- Collision deductible $2000
- Comprehensive deductible $1000
- Truck total loss payout Up to $140000
Verdict The higher monthly premium gives Ahmad peace of mind and ensures he can replace or repair the truck if disaster strikes.
Add Ons That Enhance Full Coverage
Some insurance providers offer policy add ons that can increase the value of full coverage
| Add-On | Description |
| Downtime Coverage | Pays for lost income while your truck is being repaired |
| Rental Reimbursement | Covers cost of a temporary replacement truck |
| Trailer Interchange Insurance | Covers damage to non owned trailers |
| Cargo Insurance | Protects the value of the goods being transported |
| Towing & Roadside Assistance | Emergency support on the road |
Tips for Choosing the Right Coverage
Assess Your Truck Value
If your truck is worth more than $30000 and you ca not easily replace it full coverage is the safer option.
Review Your Financing Contract
Leased or financed trucks typically require full coverage by contract.
Think Long-Term
A single accident theft or fire could cost you more than years of full coverage premiums.
Shop Around and Compare
Get quotes from multiple providers. Look for commercial truck specialists that can tailor coverage for
- Reefer trucks
- Dump trucks
- Tow trucks
- Flatbeds
- Hotshot operations
Popular Providers Offering Both Options
Here are some insurance companies that offer both liability only and full coverage policies
| Insurance Company | Known For |
| Progressive Commercial | Customized plans and discounts |
| OOIDA | Owner operator focused plans |
| The Hartford | Large fleet policies |
| Sentry | Strong claims service |
| Nationwide | Flexible policy options |
Understanding the Key Differences Between Full and Liability Truck Insurance
Commercial truck drivers and fleet owners must understand the differences between full coverage and liability insurance. Each serves a distinct purpose and comes with its own costs advantages and legal implications. Choosing the right one depends on your business needs state regulations and the value of your truck.
Liability Truck Insurance
Liability truck insurance is the minimum coverage required by law in all U.S. states for commercial truck drivers. It includes:
- Bodily Injury Liability Covers medical expenses lost wages and legal fees if you’re at fault in an accident that injures another person.
- Property Damage Liability Pays for damages to another vehicle or property caused by your truck.
Who Needs It
- All commercial truck drivers.
- Especially relevant for owner operators leasing their trucks to motor carriers (who may provide additional coverage).
- Businesses with older trucks or operating in low risk areas.
Pros
- Lower premiums.
- Meets legal requirements.
- Suitable for trucks with low market value.
Cons
- Does not cover your own vehicle damage.
- Limited protection for theft vandalism or weather damage.
Is Full Coverage Truck Insurance
Full coverage typically includes liability insurance along with physical damage coverage which may consist of:
- Collision Coverage Covers repair or replacement of your truck if it collides with another vehicle or object.
- Comprehensive Coverage Protects against non collision events like fire theft vandalism hail or natural disasters.
- Uninsured Underinsured Motorist Coverage Pays for your injuries or damages caused by drivers without enough insurance.
- Cargo Insurance (optional) Covers the value of the goods being transported.
Who Needs It
- Fleet owners or owner operators with new or high value trucks.
- Truckers with financing or leasing agreements (required by lenders).
- Those operating in high risk areas or weather prone zones.
Pros
- Protects your truck and business investment.
- Provides peace of mind against a wide range of incidents.
- May include rental reimbursement and roadside assistance.
Cons
- Higher monthly premiums.
- May not be cost effective for older trucks.
Cost Comparison
| Insurance Type | Average Annual Cost (Per Truck) |
| Liability Insurance | $5000 $7500 |
| Full Coverage | $9000 $14000+ |
Coverage Should You Choose
Choose Liability Insurance if
- Your truck is older or has low market value.
- You’re trying to reduce costs temporarily.
- You’re leased to a motor carrier who offers additional insurance.
Choose Full Coverage if
- You own a new, expensive truck.
- Your truck is still under finance or lease.
- You haul valuable cargo.
- You drive long distances or through hazardous areas.
How to Decide
Ask yourself
- Can I afford to repair or replace my truck out of pocket
- Is my vehicle required by a lender to carry full coverage
- What’s the potential loss if my truck is totaled
A cost-benefit analysis can help you weigh the monthly premium versus the risk of a costly accident or loss.
Conclusion
Choosing between liability truck insurance and full coverage depends on your business model risk tolerance truck value and budget.