Commercial truck insurance in Ontario isn't just another business expense—it's a legal requirement and a critical layer of financial protection for your fleet. Whether you're an owner-operator with one truck or a fleet manager overseeing dozens, having the right coverage ensures you're compliant with provincial regulations and protected from unexpected liabilities.
In this guide, we break down what commercial truck insurance is, what it covers, and how to make smart decisions that reduce costs and protect your business.
Commercial truck insurance is a specialized form of auto insurance designed to protect vehicles used for business purposes. This includes everything from cargo vans and straight trucks to semis and long-haul rigs. It's required by law in Ontario for any business operating commercial vehicles.
Unlike personal auto insurance, commercial truck insurance offers more robust coverage tailored to the unique risks of hauling goods, operating large vehicles, and managing professional drivers.
Understanding the components of your policy helps ensure you’re fully protected:
Covers third-party injuries or property damage if your truck is involved in an at-fault accident. Ontario’s legal minimum is $200,000, but most trucking businesses carry between $1–5 million in liability coverage.
Pays for repairs or replacement of your truck after an at-fault accident with another vehicle or object.
Covers non-collision damages like theft, vandalism, fire, or weather events (hail, floods, etc.).
Pays for medical bills, rehab, and income replacement for you and your passengers if you're injured, regardless of who is at fault.
If you transport goods, this protects against loss, theft, or damage to the cargo. Required for many contracts and often customized based on cargo value.
Several variables determine your insurance cost. Understanding these can help you reduce risk and negotiate better rates.
Heavier or specialized vehicles (e.g., refrigerated trucks) often carry higher premiums due to the added risk and repair costs.
Local delivery trucks may cost less to insure than long-haul trucks crossing provinces or into the U.S.
Drivers with clean records reduce premiums. Regular MVR (Motor Vehicle Record) checks can help manage this proactively.
A history of frequent or large claims can signal risk to insurers, increasing premiums or limiting your policy options.
Trucks stored in secured, low-crime areas will be cheaper to insure than those in high-risk urban zones.
Not all insurance carriers understand the trucking industry. Work with brokers who specialize in Ontario-based transportation businesses.
A higher deductible can reduce your premium—but make sure you can afford the out-of-pocket cost if a claim arises.
Choose tailored protection over one-size-fits-all. Cargo, downtime, loss of use, and bobtail coverage may be essential for your operation.
Commercial truck insurance is too complex to DIY. Speak with a licensed broker to get recommendations based on your specific setup and routes.
At Mehmi Financial Group, we understand that trucking businesses don’t just need equipment financing—they need financial protection for the road ahead. While we don’t sell insurance directly, we support Ontario’s transportation industry through:
These services ensure you can meet your insurance payments, fund unexpected deductibles, and keep your fleet rolling.
What is the minimum commercial truck insurance in Ontario?
$200,000 in third-party liability, but most operators carry $1M–$5M for better protection.
Is cargo insurance mandatory in Ontario?
Not by law, but many customers, contracts, and cross-border hauls require it.
Can I insure my truck if I have a new business or limited experience?
Yes, but premiums may be higher. Some insurers specialize in new businesses with clean safety plans and proper paperwork.
Does commercial truck insurance cover personal use?
No. You’ll need a personal auto policy or specific endorsements for any off-duty use.
How can I lower my premium?
Maintain clean driving records, invest in safety tech, park in secured lots, and work with brokers to shop rates annually.
Commercial truck insurance in Ontario is more than a checkbox—it’s a strategic decision that impacts your financial health and legal standing. As a fleet manager or owner-operator, understanding the coverage types, legal minimums, and risk factors helps you stay compliant and protected.
Secure working capital or flexible truck refinancing to keep your operations moving forward.
👉 Speak to a Mehmi Advisor
.avif)