For truckers and small fleets, insurance is one of the biggest fixed expenses — and one that keeps climbing nationwide. According to ATRI’s 2025 Operational Costs of Trucking report, insurance premiums rose another 5–6% in early 2025, putting even more pressure on carriers’ bottom lines.That’s why knowing where coverage is most affordable matters. Premiums vary widely by state and by type of operation — whether you run local/intrastate routes or national/interstate hauls. For owner-operators and small trucking companies, understanding these differences can unlock significant savings.
Below, we break down the cheapest states for truck insurance in 2025, explain why rates differ, and highlight what factors matter most for owner-operators and fleets.
Local vs. National Truck Insurance: What’s the Difference?
Before diving into rankings, it’s important to clarify the two main types of policies:
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Local/Intrastate Insurance
Covers trucks operating primarily within one state. Premiums are generally lower, since risks are limited to regional routes, with less exposure to high-traffic corridors and theft-prone freight hubs.
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National/Interstate Insurance
Required for carriers that cross state lines. Premiums are typically much higher due to longer hauls, exposure to congested urban centers, higher claim severity, stricter FMCSA liability requirements, and greater cargo risks.
If you haul across state lines — even occasionally — your operation falls under interstate insurance rules.
Cheapest States for Local Truck Insurance in 2025
For intrastate (local) carriers, the following states offer the most affordable average annual premiums:
| Rank | State | Avg. Local Premium | Why It’s Cheaper |
| 1 | Mississippi | $3,552 | Less congestion for local ops, predictable legal climate, and competitive market rates. |
| 2 | Wyoming | $4,927 | Wide-open highways, low traffic density, and lower theft exposure. |
| 3 | Massachusetts | $5,447 | Strong safety compliance and lowest crash fatality rate per mile in the U.S. |
| 4 | Iowa | $5,615 | Agricultural freight, good roads, and recent tort reform capping non-economic damages. |
| 5 | Arizona | $6,102 | Balanced regulations, lower theft exposure than coastal hubs, and strong insurer competition. |
Source: CoverWallet.
Cheapest States for National/Interstate Truck Insurance in 2025
For carriers running interstate routes, average premiums climb significantly. Here are the most affordable options in 2025:
| Rank | State | Avg. National Premium | Why It’s Cheaper |
| 1 | Mississippi | $4,664 | Still lowest nationally — moderate long-haul risk, fewer “nuclear verdicts.” |
| 2 | Wyoming | $7,149 | Sparse population, limited urban exposure, lower accident frequency on interstates and fewer theft claims. |
| 3 | Nebraska | $8,664 | Agricultural freight mix and relatively predictable claim severity. |
| 4 | Iowa | $8,866 | Tort reform plus lower theft exposure than high-volume freight hubs. |
| 5 | Idaho | $9,008 | Rural corridors, less litigation risk, and lower medical cost structures. |
Source: CoverWallet.
What Factors Impact the Cost of Commercial Truck Insurance?
Insurance premiums are shaped by more than just geography. Insurers evaluate a combination of risk factors, including:
- Location: The state where your business is based or operates can significantly influence insurance costs. States with higher risk factors, such as traffic density or weather conditions, can drive up insurance costs.
- Driver Safety Record: A clean driving record is one of the most critical factors. Drivers with no history of accidents or violations will generally receive lower premiums.
- Cargo Type: Trucks carrying hazardous materials or high-value goods are seen as having higher risk and require specialized coverage that increases premiums.
- Truck Type & Age: The type, age, and condition of the truck also play a role. Newer trucks with advanced safety features might be more expensive to insure due to their higher value, but they could also qualify for discounts thanks to their safety technology. Older trucks might have lower premiums due to their reduced value, but the lack of modern safety features can be a downside.
- Coverage Levels & Deductibles: The extent of the coverage you choose directly affects your premiums. Higher coverage limits provide more protection but come with higher costs. On the other hand, policies with lower deductibles will generally have higher premiums since the insurance company assumes more risk in case of a claim.
- Fleet Size: The number of vehicles in your fleet can also influence costs. Larger fleets often benefit from bulk discounts, but the overall insurance costs will be higher due to the increased number of vehicles covered.
- Legal & Regulatory Climate – States with tort reform (e.g., Mississippi, Iowa) see fewer nuclear verdicts and lower premiums thanks to damage caps that reduce lawsuit severity. In more litigious states, liability claims drive premiums up significantly.
How To Find Cheap Truck Insurance
Carriers can often lower premiums by focusing on risk management instead of sacrificing coverage:
- Compare quotes from multiple insurance providers to ensure you're getting the best rate.
- Look for discounts that can reduce costs, such as those for safe driving records, bundling policies, or paying annually.
- Improve your credit score, a better score can lower premiums and maintain a clean driving record to secure lower rates.
- Choose a reputable insurer to avoid hidden fees or inadequate coverage that could leave you underinsured.
- Work with an insurance broker who specializes in commercial truck insurance can help you navigate options and find tailored discounts.
- In the long run you can leverage Safety Programs, invest in driver training, ELD/telematics, and preventive maintenance to demonstrate lower risk.
What to Look Out for in Cheap Insurance Policies
If you decide getting the cheapest insurance possible is the best way to go, then be cautious of:
- Hidden Costs & Deductibles: Ensure that the policy doesn't come with unexpected fees or surcharges or have high deductibles that could result in unaffordable out-of-pocket costs if you need to make a claim.
- Minimal Coverage: Verify that the policy meets all your coverage needs and isn't just offering the bare minimum required by law. Make sure it includes vital coverages like cargo, liability, and physical damage.
- Reputable Insurer: Choose an insurance provider with a good reputation for handling claims fairly and efficiently.
👉 The cheapest insurance is only “cheap” if it still protects your business adequately.
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Why Choosing the Right Insurance Matters
Selecting the right insurance is vital for your business's sustainability. A policy that looks cheap up front but leaves you underinsured can cost far more in lawsuits, repairs, or lost loads. Balancing affordability with adequate protection is essential for long-term survival in the trucking industry.
Freight Factoring: A Vital Complement to Your Insurance
Securing the right insurance protects you from financial loss after an accident, but staying in business also requires steady cash flow. Many trucking companies wait 30–60 days to get paid by brokers or shippers — a gap that can make it difficult to cover fuel, payroll, repairs, and even insurance premiums.
Freight factoring bridges that gap. By converting invoices into same-day cash, you keep operations moving and protect your business from cash flow shortages.
At Summar Financial, we advance up to 98% of your invoices within 24 hours, helping you:
- Cover insurance premiums without waiting on brokers or shippers.
- Pay for fuel, repairs, and payroll on time.
- Stay financially stable while focusing on growth, not collections.
Pairing the right insurance coverage with steady cash flow from factoring ensures your business stays protected and financially stable.
👉 Ready to take control of your cash flow? Give us a call or fill out our form and get funded right away.