For trucking companies and owner-operators in Arizona, insurance is one of the biggest ongoing expenses. The Department of Transportation (DOT) requires specific coverage to operate legally, and the premiums can add up quickly—especially if you’re not sure what’s mandatory and what’s simply recommended. In 2025, understanding the minimum coverages and how much they cost is critical for staying compliant without overspending.
What Coverages Are Required by the DOT?
The DOT, through the Federal Motor Carrier Safety Administration (FMCSA), mandates that all motor carriers carry primary liability insurance. This coverage protects against bodily injury and property damage caused to others and is the foundation of any commercial trucking policy. Liability limits vary depending on the freight you haul: general freight carriers need at least $750,000 in coverage, while those hauling oil must carry $1 million. Carriers transporting hazardous materials are required to have $5 million in coverage.
Although cargo insurance is not technically a federal requirement, most shippers and brokers will insist that you carry it—usually at a minimum of $100,000. Cargo insurance covers damage or loss to the goods you transport. Many Arizona carriers also add physical damage insurance to protect their own trucks and trailers against theft, fire, or accidents. Other coverages, such as general liability and uninsured/underinsured motorist protection, are not federally mandated but are strongly recommended for additional protection and are sometimes required at the state level or by customers.
What Does Trucking Insurance Cost in Arizona?
The cost of trucking insurance in Arizona varies widely, but it’s helpful to look at averages. In 2025, the annual premium for primary liability insurance typically falls between $7,500 and $12,000 per truck for general freight. If you haul hazardous materials or operate in higher-risk areas, you can expect premiums to exceed $20,000. Cargo insurance adds another $400 to $1,200 per year, while physical damage coverage usually costs between 2.5% and 5% of the truck’s value. For example, a rig worth $100,000 might cost $2,500 to $5,000 annually to insure for physical damage.
Uninsured and underinsured motorist coverage tends to be a smaller portion of the total premium, usually $200 to $600 per year, and general liability insurance runs about $500 to $1,500 annually. When all the required and recommended coverages are combined, an Arizona owner-operator with a single truck is likely to spend between $10,000 and $16,000 per year on insurance in 2025. Fleets typically pay less per vehicle because of volume discounts, but their total costs are obviously much higher.
What Affects Your DOT Premium?
Several factors determine how much you’ll pay. The driving records of everyone behind the wheel are critical, and clean records almost always result in lower premiums. Insurance companies also look at your company’s experience and claims history. New trucking authorities and drivers with fewer years on the road are considered riskier to insure, which pushes costs higher.
The freight you haul plays a big role too. Carriers transporting hazardous materials or high-value goods pay more because the potential loss is greater. Operating radius matters as well; long-haul carriers usually pay more than those running local or regional routes. Equipment values, particularly if you’re insuring new or custom trucks, also affect physical damage coverage costs.
Keeping Costs Under Control
While some expenses are unavoidable, there are ways to keep trucking insurance affordable. Maintaining strong safety records is the most effective strategy. Insurers reward carriers with low accident rates and clean driver histories. Shopping around for quotes from multiple companies can also uncover better rates, especially if you work with agencies that specialize in trucking.
Bundling multiple coverages with the same insurer often brings discounts, as does installing safety technology such as dash cameras or telematics systems. Finally, reviewing your policies each year ensures you’re not paying for outdated coverages, like excess cargo limits or trucks you no longer own.
Trucking insurance in Arizona is expensive, but it’s also non-negotiable. In 2025, most owner-operators can expect to pay well over $10,000 per year to stay compliant with DOT regulations. Understanding the minimum requirements, choosing the right mix of additional protection, and maintaining strong safety standards can go a long way toward keeping costs manageable. Working with an insurance agent who understands the DOT trucking industry can help you stay on the road legally without overpaying for coverage you don’t need.