Do trucks have cheaper insurance than cars?

No, commercial trucks cost significantly more to insure than cars. While the average Ontario auto premium is $1,780/year, commercial truck insurance ranges from $10,000 to $18,000/year for new ventures. Personal pickup trucks are comparable to cars, but heavy commercial vehicles involve much higher liability and cargo risks.

Commercial Trucking Cost Factors

• Higher Liability Limits: Heavy trucks typically require $2,000,000 to $5,000,000 in liability coverage compared to the standard $1,000,000 for passenger vehicles.
• Cargo Insurance: Commercial policies include mandatory Motor Truck Cargo coverage (typically $100,000+ limit), which personal auto policies do not cover.
• Operational Risk: Premiums are driven by your CVOR rating, operating radius (local vs. long-haul), and cargo type rather than just personal driving history.

To lower your commercial premiums, maintain a clean CVOR and increase your deductibles. Contact a specialized broker to compare rates for fleet vs. non-fleet policies to secure the best pricing.