Hunter Nelson (YouTube) explains bobtail insurance (also called non-trucking liability, NTL) for truckers: what it covers (liability when not under a bill of lading/leased authority), how it differs from auto liability and cargo coverage, and how physical damage (PD or “full coverage”) operates (comprehensive vs collision). He reviews typical premium ranges and concrete examples — e.g., bobtail NTL annual costs often cited around $450–$900 depending on carrier and driver history, and PD rates typically expressed as a percent of truck value (examples: 4.5% with Dynamic Specialty, 11% → $11,000 on a $100,000 truck at 11%).
Questions this video answers
$450 per year (Dynamic Specialty example).
Around $800–$900 per year for bobtail liability on Progressive (varies by driving experience).
An 11% PD rate produces an $11,000 annual premium on a $100,000 truck.
4.5% (so a $100,000 truck → $4,500 premium).
He reported seeing PD rates as low as 1.5% and as high as 16%, with common starting points from about 6%–16% depending on experience and carrier.
Chapters
All right, so I'm gonna give you guys a brief overview of what bobtail coverage is. So if you guys have your own authority, that is when you're gonna have auto liability and cargo insurance. So auto liability is gonna be protecting the truck while it's on the road. But this coverage is going to follow the dot. So if you ever have anybody you're leased on to tell you guys they need to provide cargo or, or auto liability, don't listen to them, they're incorrect. For one, there won't be coverage because it follows their dot. And same goes for cargo as well. But what you guys will need is NTL or non trucking liability. Most truckers know it as bobtail coverage and pd, which is physical damage, which is also known as like not a real thing, but full coverage, quote unquote. So, so what NTO or bobtail coverage is is that's going to cover you when you're not driving, which would be the auto liability for or on the bill of lading or you're hauling a load or anything on those lines. This is going to be your bobtail, your deadhead, your dawn hauling. Head back to the shop, whatever the heck you guys are doing, that's when it's going to be covering or that's what bobtails will be covering. Physical damage is actually going to be a higher premium. Most of the time depends on the value of the truck. But this is no different of a coverage than what you're gonna see like on your auto insurance. It's comp and collision. So pd, full coverage is gonna be covering comprehensive, which is gonna be anything besides an accident. You guys hit a deer, you guys have hail damage, fire, theft, wind, hail, all that type of stuff. Any natural event is being covered under comprehensive coverage. Collision is gonna be an accident. You guys are hauling, you guys are done hauling, heading back home. You get in an accident, collision is gonna pick up this coverage. This is an accident you are at fault for. If you're not at fault, you might have comprehensive reclusion pick up, but the other person is supposed to pay for that accident. So those are the coverages explained. You really shouldn't need anything else there but or just get started up now talking about rates and what this stuff costs or premium. So I quoted a lot of bobtail policies and a lot of fiscal damage policies. The NTL or the bobtail policy itself, progressive, is going to give a different rate based on your driving experience. It's going to vary quite a bit there. I usually see 8, $900 for just the liability of the bobtail portion of it itself. Now, there are companies out there and some we work with that are going to have a set rate and for example, dynamic specialty, they're going to come in at $450 for your guys, NTL coverage, your bobtail coverage set. Pretty much as long as you meet their guidelines, which is one year CDL experience, you can't have any major violations. Can't have anything too crazy. No more than one at fault accident. You guys can get bottle coverage for $450 a year. Now the one that's going to vary a lot more and a lot of truckers don't know about this is your physical damage coverage. Your physical damage is always going to vary pretty much based on the truck value, which some agents are going to call it tiv, which is total insured value. And you might get a different rate with progressive pretty much every different time. I've seen 16% rates. I've seen one. And I'm going to walk you guys through what that means. So let's say your truck, you just got your truck getting ready to go, you're leased on to somebody. And this could actually even apply to you if you have your authority, physical damage coverage. But let's say you got your truck, you get $100,000 truck, you're getting an 11% rate. You get 11% rate. That means your annual premium is going to be $11,000. Now that's going to vary pretty wildly. Progressive again, I've seen it 16%. I've seen it 1.5% on guys who are squeaky clean, bad business forever. But starting off anywhere from 16 to like 6%. Again, dynamic specialty, I love them because it's set rate. You guys call me for a quote, I know exactly what price is going to be.450 bucks for your NTL, you'll be a 4.5% rate for your physical damage, which means, you know, $100,000 in truck and trailer value or truck value, whatever you got, you're gonna be 4,500 bucks. And this really doesn't adjust a whole lot too what the deductible keeps reaction pretty simple. So if you go $2,500 deductible, you might be looking at a 4.25% rate. But that's how premiums work. Progressive. A lot of these other companies like that. It's going to vary quite heavily. Yes, the company's out there, puts a set rate, keeps it easy. So that way when you get started up, you know exactly your premium is going to be. But this will walk through the coverages and prices. So don't let everybody tell you you need this. Yeah, that's Bob toe cover.
