How Much Does Cargo Insurance Cost?

Purchasing the right cargo insurance coverage at an affordable rate is important. All truckers need cargo insurance. Whether you’re an owner-operator running under your own authority or own a large fleet of trucks, understanding your cargo insurance cost and truck insurance options helps protect your company.

There are several types of cargo insurance available for purchase including broad form, named perils, and open cover. Most truck insurance policies provide broad form cargo coverage. Broad form provides protection for cargo against all types of risk unless specifically excluded in the policy contract.

What is cargo insurance?

Cargo insurance is coverage to protect freight from physical damage or theft.

It is a vital coverage for trucking companies to purchase. Without cargo, any damage to freight must be paid out of your pocket. Not to mention, without cargo insurance, very few, if any, brokers would provide work for your business.

As an insurance agency, a significant amount of our time is spent providing proof of cargo insurance to brokers for loads. Without cargo insurance, your trucks are parked.

How much does cargo insurance cost?

The average cost of cargo insurance ranges from $800 to $1,500 annually per truck for general dry freight with a $100,000 limit policy. However, your specific cargo insurance rate varies on several factors including your operating radius, business experience, commodities hauled, loss history, and more.

Monoline cargo coverage tends to run between $150 and $250 per month. Factors such as down payment, APR, cargo commodities, and more can play an impactful role in the overall cost.

Most insurance companies offer deductible options ranging from $1,000 to $5,000. Choosing a higher deductible can lower your premium but means you’ll pay more out of pocket if you have a claim.

Average dry van cargo insurance cost:

Average reefer cargo insurance cost:

Average car carrier/auto hauler cargo insurance cost:

Each insurance company offers different coverage limits with different premium ranges. It’s important for you to find an independent insurance agent that specializes in motor truck cargo insurance policies and commercial truck insurance. Have a truck insurance agent reach out to you today.

How is cargo insurance calculated?

Insurance companies determine the cost of cargo insurance through several factors including:

• The type of cargo being hauled – Automobiles cost more to insure than paper towels
• Cargo policy limits – The policy limit is the maximum amount your insurance company will pay for any one loss. The higher your limit, the more you will pay in premium.
• Your loss history – Insurance companies use your historical losses to determine the price of cargo insurance.
• Driver MVRs – Drivers that are prone to speeding or accidents will cost more to insure

Important coverage for truckers

Basic motor truck cargo insurance policies cover damages or loss of freight due to accidents, fire, or theft. However, you can purchase additional cargo coverage for greater protection.

• Refrigeration Breakdown – If you haul temperature-sensitive goods, reefer breakdown coverage is essential. This covers losses caused by mechanical failure of refrigeration equipment.
• Earned Freight – This coverage pays for your freight charges when cargo is damaged or lost in a covered claim. Without it, you could lose both the cargo and your payment for hauling it.
• Loading and Unloading – Coverage for damage that occurs during loading or unloading operations. Many basic policies exclude this coverage, leaving a dangerous gap in protection.
• Pollution Liability – Sometimes your cargo accident creates pollution damage. An example includes fire which may damage trees, nearby buildings, and more.
• Debris Removal – Have you ever seen a picture of an overturned trailer with the cargo commodities spread out on the ground and wondered who pays for the cleanup?
• Water Damage – Tarped loads or freight susceptible to rust require additional protection.

What cargo limits do you need?

Most freight brokers require a minimum of $100k cargo for general dry freight such as consumer goods, paper and plastic products, and more. Auto haulers usually carry higher cargo limits like $250k or more depending on the number of vehicles they haul.

The cargo limit you need is determined by the value of your freight, broker requirements, and contract specifications.

For example, Amazon Relay requires $100,000 cargo with $1,000 deductible.

Why choose Trucking Insurance Services?

Ready to review your cargo insurance options? Call us at 855-281-2924 or request a free quote. Our team of dedicated agents specializes in trucking insurance and understands your unique needs. Whether you’re a new venture or an established carrier, we’ll help you find the right cargo coverage at the right price.

Don’t let inadequate cargo coverage put your business at risk. Contact Trucking Insurance Services today and get the protection you need from agents who speak truck.