Commercial Truck Insurance in Canada

If you’ve recently purchased a used commercial truck in Canada, securing the right insurance isn’t just a box to check — it’s a vital step in protecting your investment and ensuring legal compliance. From basic coverage requirements to the top ways to reduce your premium, here’s everything you need to know about commercial truck insurance for used rigs.

What Kind of Insurance Do You Need for a Used Truck in Canada?

Commercial truck insurance is mandatory across all Canadian provinces and territories. At a minimum, you're required to carry third-party liability insurance, which protects you if your truck causes damage to other people or property.

But for used truck owners, especially those running their own operation, you'll likely need a more robust policy. Here are common coverage types:

• Third-Party Liability – Mandatory in all provinces, typically starts at $200,000 minimum coverage, but many carriers recommend $1M–$2M.
• Collision Coverage – Pays for repairs or replacement if your truck is damaged in an accident, even if you're at fault.
• Comprehensive Coverage – Covers non-collision events like theft, fire, or vandalism.
• Cargo Insurance – Required if you’re hauling goods. Protects the freight you’re transporting.
• Non-Owned Trailer Coverage – Essential if you're leasing or borrowing trailers.
• Downtime / Rental Reimbursement – Helps cover income loss if your truck is off the road.

For more on what qualifies for financing and insurance, check out our eligible equipment list.

What Impacts the Cost of Insurance for Used Trucks?

Used trucks can cost less to insure than new models, but several factors go into pricing your premium:

If you’re planning to finance or lease your truck, insurance coverage is often a lender condition. Learn more about equipment loan requirements.

Average Insurance Premiums for Used Trucks in Canada

On average, expect to pay:

• $8,000–$15,000 per year for long-haul trucks
• $5,000–$10,000 per year for local or regional haulers
• Higher if you have multiple violations or past insurance lapses

You can use Mehmi Group’s loan calculator to estimate total ownership costs including insurance.

Tips to Get Better Commercial Truck Insurance Rates

To lower your insurance premiums:

• Keep your CVOR abstract clean – Fewer violations = lower risk profile
• Bundle multiple trucks or policies – Fleets often qualify for discounts
• Increase your deductible – Taking on more risk can reduce premiums
• Install safety technology – Dash cams, telematics, GPS systems
• Provide proof of preventative maintenance – Insurers value reliability
• Work with brokers that understand trucking – Like Mehmi Financial

You can learn more about truck safety investments that boost both insurance and resale value.

When Should You Shop for Insurance?

If you’re buying a truck privately, make sure to get quotes in advance so coverage is active before your first drive. For trucks bought from Mehmi’s inventory, our team can walk you through financing and insurance timing in one step.

We also help used truck owners explore refinancing or sales-leaseback options — often requiring updated insurance before funding.

Real-World Case: Lowering Insurance on a Used Rig

One Ontario-based owner-operator was upgrading from a 2012 Freightliner to a 2018 Volvo. His initial quote came back at over $13,000. After reviewing his driving history and bundling a trailer policy, he was able to drop that to just under $9,000. Adding a dash cam system saved him another $500 — and the newer truck’s lower breakdown risk was reflected in the rate.

By financing the truck through Mehmi Group, we were able to include the first year’s insurance cost into the loan — improving his cash flow and getting him on the road faster.

FAQs

What’s the minimum insurance required for a used truck in Canada?
At minimum, third-party liability coverage is required. Most carriers mandate at least $1 million in coverage for commercial trucks.

Can I transfer insurance from my old truck to a new one?
Yes, but you must notify your insurer and provide updated details. A different truck may require a new rate.

Does truck financing require proof of insurance?
Absolutely. You’ll typically need full coverage (liability + physical damage) in place before funds are released.

Are there discounts for telematics or dash cams?
Many insurers offer discounts for safety tech like dash cams, GPS, and telematics systems. It shows you’re investing in risk reduction.

Is cargo insurance required for all truckers?
It depends on what you’re hauling. If you’re under contract with a shipper or operating under your own authority, cargo insurance is usually required.

Can I get insurance before buying the truck?
You can get a quote based on VIN or vehicle details, but final coverage starts once ownership is transferred. Learn more on our inventory page.

If you're unsure where to start, speak to a financing advisor who can guide you through both the purchase and insurance setup process.

Let us help you protect your truck, your business, and your bottom line.

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