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Your insurance requirements as an Owner-Operator depend on what type of business you run and whether you're leased onto a carrier or running under your own authority. These requirements typically revolve around the health of your truck and trailer, such as Auto and Cargo Liability insurance and Non-Trucking Liability (also known as Bobtail) insurance. More often than not, insurance for the actual health of the human - the driver - is not a requirement.

However, your health is absolutely central to your ability to bring home an income. And whether you are a driver leased onto a carrier or running under your own authority, or you employ drivers under your authority, the need to protect yourself and others through health insurance is simply a must.

There is no question that as an Owner-Operator, you've thought long and hard about your business. You've done so much work to evaluate your profitability, by gathering information, crunching the numbers, and weighing the many costs and benefits. Medical insurance is a key component to that equation. And similar to the carriers, brokers and shippers you directly work with, your insurance company should be seen as a partner that helps ensure your success by providing protection and minimizing costs.

There are countless health insurance options available for truck drivers. So many, in fact, that it's easy for eyes to gloss over when reviewing the details of the different plans, including categories covered (or not covered) and their costs. Health insurance is simply a complex topic that requires a lot of explanation. In this article, we outline the health risks for drivers, basic benefits of insurance, types and cost of insurance, and a list of resources to help you understand your options and ways to move forward to protect yourself.

Health Risks for Truck Drivers

There is no question or surprise that truck driving is a hazardous occupation. In fact, the Bureau of Labor Statistics reports that due to accidents on the road, truck drivers have one of the highest rates of injuries, illnesses, and fatalities of all occupations.

Additionally, the Center for Disease Control (CDC) found that long-haul truck drivers are more likely to smoke, be overweight, and are less likely to be physically active compared to other US workers.

Another study, published in the American Journal of Industrial Medicine, found long-haul truck drivers to be more than twice as likely to be obese and smoke as other workers. "Sixty-one percent reported having two or more of the risk factors: hypertension, obesity, smoking, high cholesterol, no physical activity, 6 or fewer hours of sleep per 24-hr period."

Hopefully none of the above risk factors apply to you. If they do, you know all too well that when you don't drive, you don't get paid. And even if they don't, having insurance for if and when issues do occur, is necessary.

So what exactly are the benefits that health insurance provide?

The Benefits of Health Insurance

There are three main reasons why it's important to be covered with health insurance:

1. It gives you financial protection and significantly lowers your costs in the event of a serious accident, injury, or illness.
2. It gives you general access to medical care. Depending on your plan, some doctors and medical facilities will only see and treat patients who have insurance.
3. It gives you the ability to be proactive, especially with preventive services. Regular check-ups, being aware of and dealing with issues early, helps to prevent issues that are small now from growing into major problems later. You are more likely to seek medical help when you have health insurance, which could make a huge impact on your wellbeing. Sometimes this could mean the difference between life or death.

Not having insurance is risky for you and your family, and could put you in a very difficult position from a medical perspective. Yes, it is expensive, and we could provide all sorts of statistics on the costs of medical care (more on this below). We expect, however, you already know medical costs continue to rise ‚Ķ and they tend to increase more as people age. Medical bills are even one reason many people file for bankruptcy. Insurance can help you get access to needed care and assist in lowering the costs for medical services. 

But what is the cost of not having insurance and putting off needed care? You likely are required to pay for insurance for your equipment such as bobtail or trailer. Insuring yourself should be just as commonplace as your truck. It is the smart and right thing to do. You are worth it.

Let’s look at the different types of medical insurance that are available to you.

Types of Medical Insurance

The plans vary by what is covered (or not covered), deductibles, out-of-pocket maximums, and premium costs. The basic types include:

• Annual. Normally from January 1 to December 31 of each year. The enrollment period varies by plan but is usually between November 1 and December 15 of the year prior to the insurance becoming effective. These plans usually have the most comprehensive coverage but higher monthly premiums. 

*Note: Many of these plans allow enrollment outside the normal window for events such as a job change or change in family status. 

• Short-term. Historically these were designed for a time period from a few weeks to up to a few months. Longer time periods are now being allowed. This should be considered temporary insurance ‚Äì a gap type of insurance ‚Äì and not a long-term option. The monthly premiums tend to be lower, but these plans generally provide less coverage and exempt pre-existing conditions.

• Government (Medicaid, CHIP, Medicare). The income limits prevent many owner-operators from participating in Medicaid and CHIP. 

• Medsharing. This is technically not actually insurance. Instead, medsharing plans pool resources to cover medical expenses. Some of these plans have been approved to meet the requirements of having coverage for the Affordable Care Act. While these plans can be beneficial, it is important to understand they are not insurance and have different legal obligations regarding the coverage of medical expenses. 

The Affordable Care Act (ACA) is the law that still mandates individuals to have health insurance. What no longer applies is the tax penalty for not having health insurance. So, in essence, you are legally required to have health insurance but there is no financial penalty from the federal government if you don't.

But, whether health insurance is required, having health insurance is wise. 

Options for Health Insurance

Again, while some companies provide a health insurance option for owner-operators, the majority do not. This means that most owner-operators must find it on their own. While it is simpler to work with a company that provides an insurance option, the drawback is your options are limited. If you have to find your own insurance, it takes more effort, but you can find a plan that best meets your needs. In the long run, the extra effort is worthwhile if it means finding a better plan for you and your family. 

The Affordable Care Act (ACA) is available to everyone. Depending on your income, part of the cost may be covered through subsidies. The registration website depends on your residence. Some states have their own websites, and some use the federal website. Use this link to find out.

Insurance companies are generally regulated on the state level rather than by the federal government. Some of the biggest companies operate in all states, but many companies do not and what is offered by the same company can vary in different states. There is no one-size-fits-all in the private insurance market. 

There are hundreds of legitimate companies offering plans. The coverages (and exclusions) vary as do the deductibles and premiums. Working with a licensed health insurance professional is an option many have found helpful in finding the best plan.

The focus here has been on medical insurance, but dental and vision insurance are also important and should be considered when shopping around for different plans. These can be obtained separately or in some cases included as part of the health insurance.

Costs of Health Insurance

Part of your policy options is simply going to come down to cost. A policy you cannot pay for is not going to be in force when you need it.

In general, the higher the premium cost, the better the coverage, the more things the policy will cover and the higher amount the policy will pay. Premium costs increase as more family members are covered, more services are covered, the maximum amount that can be paid for the services is greater, and pre-existing conditions are covered. 

One way to lower premiums is to select higher deductibles that must be paid before the insurance company pays for services. Also, since costs increase based on the number of people covered, if a spouse has a plan that can cover family members, that may lower your overall costs. 

Short-term plans are less expensive upfront, but that cost advantage has to be balanced against less coverage (including the exclusion of pre-existing conditions) and its time limitation. If the coverage ends when you need it most, it could be a more expensive option in the long run. 

An annual plan with the coverage you need is usually the smartest choice even if the monthly cost is higher. The key is having the right coverage in place when you need it. 

Helpful Links

Below are some links you may find useful for additional detail:

• Affordable Care Act (ACA)
• Center for Disease Control (CDC)
• CHIP (Children's Health Insurance Program)
• HealthCare.gov Create Account
• Medicaid
• Medicare
• NIH study
• Owner-Operator Independent Drivers Association 

Since one-size-fits-all is not applicable with health insurance, and health is an individual matter, we recommend you consult a professional health insurance agent when deciding on the best course of action in this area. What kind of cargo are you hauling? Are you hauling over-the-road (OTR) or staying local? How often are you driving? The answer to these questions will help determine your ideal options. It's also important to note that the agent should be well versed in the trucking industry and the common types of accidents and losses to ensure you're receiving the best coverage possible.

Ultimately, being in good health is one of your job responsibilities, and insurance will help you not only be able to continue to work and earn an income, but maximize the income you bring home.

Other relevant articles:

Trucking Insurance for Owner-Operators

How to Become an Owner-Operator Without Going Broke

Leasing with a Company vs. Your Own Authority: A Quick Guide for Owner-Ops