Shop trucking liability long enough and you'll get a quote from an RRG. It's a real, legitimate way a lot of trucking insurance is written, and it can be a good deal, but it works differently from a standard insurance company, and there are a few things you need to know before you sign. Here's the honest version.

What an RRG actually is

RRG stands for risk retention group. It's a liability insurance company that is owned by its members, the businesses it insures. RRGs were created by a federal law, the Liability Risk Retention Act of 1986, so that groups of similar businesses (say, trucking companies) could band together, pool their risk, and self-insure their liability as a group instead of buying from a traditional carrier.

So when you're insured by a trucking RRG, you're not just a customer, you're effectively a member-owner of the insurer alongside other truckers. The RRG is domiciled (licensed) in one state but, under that federal law, can insure members across the country.

The upside

  • Built for trucking. A trucking-focused RRG understands the risk, the operations, and the claims better than a generalist. Underwriting and service can be more tailored.
  • Member-owned. Profits and control stay in the group rather than a distant insurer. Some RRGs return value to members over time.
  • Availability and price. When the standard market is tight or expensive, an RRG is often a competitive, stable option, especially for operations traditional carriers shy away from.

The three things you have to know

1. RRGs only write liability. By law an RRG can cover liability (your auto liability, general liability). It cannot write your physical damage, motor truck cargo, or trailer coverage. Those you'll buy separately from another market. So an RRG is part of your package, not the whole thing.

2. No state guaranty-fund backstop. This is the big one. Traditional insurers are backed by state guaranty funds, a safety net that pays claims if the insurer goes insolvent. RRGs are not. If an RRG becomes insolvent, there is no state fund standing behind it. That makes the RRG's financial strength the thing to check. Look at its rating and how long it's been operating. Many solid RRGs are rated by Demotech rather than AM Best, which is normal for the model, but you want to see a rating and a track record, not a brand-new group with no history.

3. Not everyone accepts them. Some brokers, shippers, and facilities require your insurer to carry a specific AM Best rating (often A- or better). An RRG rated by Demotech, or unrated, can get bounced by those requirements even though the coverage is perfectly real. Before you bind with an RRG, make sure it will satisfy the accounts and brokers you actually run for.

Not sure if an RRG fits your operation? Let's compare

So should you insure with one?

Often, yes, as long as you go in with eyes open. An established, rated RRG can be a smart, cost-effective home for your liability, and plenty of good carriers run on them for years. The judgment calls are: is the RRG financially solid (rating and history), and will it be accepted by your brokers and shippers. If both answers are good, an RRG is a legitimate option. If you haul for accounts that demand an A-rated AM Best carrier, you may need a standard market instead. This is the same "read the requirement first" logic as why truck insurance is so expensive: the cheapest quote only helps if it's accepted where you run.

How McClure helps

Because we're independent, we can put an RRG next to a standard carrier and show you the real trade-off: price, financial strength, and whether it clears the brokers you haul for, so you're choosing on facts, not a logo. Tell us how you run and who you run for. Start here, and we'll lay the options side by side.