How Much Cargo Insurance Do I Need? What Brokers Require and When You Need More

By Will Kremer, Truck Insurance Agent · Last updated September 19, 2026

How much cargo insurance do I need? It’s one of the first questions every new carrier asks us, and the answer surprises people: it usually has less to do with what your freight is worth and more to do with what brokers require. Here’s the limit most carriers carry, when you need more, how raising your limit works, and the policy details that decide whether your cargo coverage actually pays when you need it.

The short answer Most motor carriers need $100,000 in cargo insurance, because that’s what brokers require before they’ll give you loads, whatever your truck or freight is worth. You need more for autos, boats, heavy machinery, oversize loads and high-value freight, where $150,000 to $200,000 is common and specialty loads can go higher. And the limit is only half of it: what the policy covers matters just as much.

Key takeaways $100,000 is the broker standard, and nearly every carrier we insure carries it. For general freight, cargo is a broker requirement, not an FMCSA one. Higher-value freight needs higher limits, and specialty loads can be written on a standalone cargo policy. No two cargo policies are the same. Exclusions and sublimits decide what actually gets paid. You almost certainly don’t need $1 million in cargo. That number usually belongs to liability.

How much cargo insurance do you need?

The limit that fits most carriers depends on what you haul:

Some 9-car haulers carry $500,000, and luxury, custom and race car haulers can go up to $1,000,000. For most carriers, though, the answer is simply $100,000. On general dry freight, that typically runs $800 to $1,500 a year; our cargo insurance cost guide breaks down pricing by limit and freight type.

Why $100,000 is the cargo insurance requirement most carriers meet

The vast majority of the carriers we insure carry $100,000 in cargo, and it isn’t because their freight is worth that much. Most cargo vans never carry $100,000 worth of goods. Some hotshot loads do, but most of the time they don’t either. Carriers carry $100,000 because brokers require it before they’ll give you loads.

Brokers set one minimum across their whole network so they don’t have to check every carrier’s limit against every load. That’s also why the number is the same whether you run a cargo van or a 53-foot dry van. For general freight, FMCSA’s filing requirements cover your liability, not your cargo, so the $100,000 is a broker rule rather than a federal one. Either way, if you want broker loads, plan on it from day one. Our motor truck cargo insurance page covers the coverage itself.

When you need more than $100,000

Brokers and shippers ask for higher limits when the freight is worth more. Automobiles are the most common reason, followed by boats, heavy machinery and construction equipment, oversize and overweight loads, specialized machinery, and higher-value dry van freight like electronics, pharmaceuticals and copper. Limits of $150,000 or $200,000 are common for these. If you haul cars, see our auto hauler insurance page for how the number of cars sets your limit.

Some loads go well beyond that. One of our clients runs a tractor and flatbed hauling a single machinery part for a company, the only one of its kind, and moves it wherever it’s needed, including into Canada. He needs $500,000 in cargo coverage. We placed it through a monoline cargo policy, meaning a standalone cargo policy separate from the rest of his coverage, which allowed the higher limit. When a load needs specialty coverage, there’s usually a way to write it.

Get my cargo quote or call 855-281-2924 Tell us what you haul, and we’ll match the limit and the policy to it.

Raising your cargo limit for one load

When a load needs more than you carry, your agent can endorse your policy to a higher cargo limit. A few things to know before you do:

• The increase applies to the whole policy term, not just the one load.
• You can endorse it back down afterward, though some insurance companies require the higher limit to stay on for at least 30 days first.
• Once a term is fine. If you’re raising it more than twice a year, it usually makes more sense to keep the higher limit.

Not all cargo policies are equal

Two policies with the same $100,000 limit can pay very differently. At one end, Northland’s Premier Cargo is about as broad as cargo coverage gets: top-shelf coverage that handles most anything and takes care of its clients. At the other end, some standalone cargo policies carry very specific exclusions that no other policy has, often for the most common causes of cargo claims.

That’s why a cargo price that seems too good to be true usually is. Exclusions that make a payout unlikely are what let a policy charge less. The details to check with your agent:

• Sublimits. A $100,000 policy might pay only $25,000 for debris removal and cleanup, with separate caps on storage of damaged cargo or on earned freight.
• Commodity exclusions. Some policies exclude certain types of freight entirely.
• Per-vehicle caps for car haulers. A policy might carry $250,000 in cargo but pay no more than $75,000 per vehicle, leaving custom, exotic, antique or luxury cars underinsured.
• Reefer breakdown. Spoilage from a reefer unit failure is a separate endorsement; see our reefer breakdown coverage guide.

The best move is simple: go through your cargo policy with your agent, line by line, so you know what’s covered and what isn’t before you ever need to file a claim.

Choosing a cargo deductible

We recommend a $1,000 cargo deductible for most carriers, because it’s an amount most people can pay without strain when a claim happens. Deductibles are very customizable, though. Some of our clients carry higher cargo deductibles, and some policies set a higher deductible for a specific commodity or a less experienced driver.

Do you need $1 million in cargo insurance?

Almost certainly not. When a new carrier asks us about $1 million in cargo, they’re usually thinking of $1 million in auto liability, which is the liability limit most brokers require. Cargo covers the freight in your truck; liability covers damage you cause to others. Unless you’re hauling freight actually worth close to $1 million, such as high-end or luxury automobiles or specialty equipment, $100,000 is the cargo limit that gets you loaded.

The biggest cargo insurance mistake

The mistake we see most is skimping: buying too little cargo, or buying a cheaper cargo policy that doesn’t cover what the carrier actually hauls, then paying for a claim out of pocket. Saving a couple thousand dollars on a standalone cargo policy can leave you holding the bag for $100,000 when a load is lost. Insurance is only as good as the quality you buy.

Just getting started? Our new venture truck insurance page covers the full first-year policy, cargo included.

Frequently asked questions

Is cargo insurance required?

For general freight, FMCSA’s filing requirements cover liability, not cargo. In practice, though, brokers require cargo insurance, usually $100,000, before they’ll give you loads, so nearly every carrier running broker freight carries it.

What are the cargo insurance requirements for truckers?

The standard requirement is $100,000, set by brokers rather than federal rules for general freight. Higher-value freight such as autos, heavy machinery, oversize loads and electronics often requires $150,000 to $250,000 or more.

Do cargo vans and hotshots need $100,000 in cargo?

If they want broker loads, yes. Most cargo vans rarely carry $100,000 worth of goods, but brokers set $100,000 as the minimum for every carrier, so that’s what we write for nearly all of them.

Do I need $1 million in cargo insurance?

Almost certainly not. The $1 million most new carriers hear about is auto liability. Cargo limits that high are for freight actually worth that much, such as luxury automobiles or specialty equipment.

Can I raise my cargo limit for one load?

Yes. Your agent endorses the policy to the higher limit, and the increase applies for the whole policy term. You can lower it again afterward, though some insurers require at least 30 days at the higher limit. If you need it more than twice a year, keep the higher limit.

What cargo deductible should I choose?

We recommend $1,000 for most carriers because it’s easy to pay when a claim happens. Higher deductibles are available and are sometimes set by commodity or driver experience.

Get cargo coverage that pays when it counts

Tell us what you haul and who you haul for. We’ll match the limit your brokers and shippers need, walk you through what the policy covers, and put you on cargo coverage that actually pays, whether that’s a standard $100,000 or a specialty limit for a one-of-a-kind load. The owner of this agency ran her own trucks before she wrote a single policy, so we know what a lost load costs.

Get your quote → or call 855-281-2924.

About the author Will Kremer, Truck Insurance Agent A truck insurance agent at Trucking Insurance Services since 2011, Will Kremer specializes in owner-operators, new ventures, and fleets, and helps truckers pick the coverage that fits how they actually run.

Cargo limits and premium figures are based on the policies we place and are for general guidance only; broker, shipper and policy terms vary, so confirm your requirements and your policy’s exclusions with your agent. Trucking Insurance Services LLC — 380 Dahlonega St #212, Cumming, GA 30040 — 855-281-2924