Motor Truck Cargo Insurance (Coverage, Limits & Cost)

When a load is damaged, stolen, or destroyed, the bill lands on you, not the shipper. Motor truck cargo insurance is the coverage that pays to repair or replace that freight, and for most for-hire truckers it is not optional. The broker hands you a load, and the contract says you carry it.

We write motor truck cargo every day, so here is the straight version: what it covers, what it leaves out, the limits brokers actually ask for, and what it costs. If you haul for hire, this page covers the coverage you need before your next booking.

What motor truck cargo insurance covers

Cargo insurance covers the freight on your truck while it is in transit under a bill of lading. The policies we place respond to most of the ways a load gets ruined on the road, including:

• Collision, overturn, and jackknife. Damage to the load when the truck wrecks.
• Theft and vandalism. Stolen freight and loads damaged on purpose.
• Fire, lightning, and explosion. Including the load lost to a rig fire.
• Weather and natural events. Windstorm, hail, flood, earthquake, and the collapse of a bridge or dock.
• Striking of the load and debris removal. Damage from the load shifting, plus the cleanup a spilled load leaves behind.

You can add endorsements for the way you actually run. The common ones we write are reefer breakdown (covers the load if the refrigeration unit fails), earned freight (the haul revenue you lose on a destroyed load), and constructive total loss and diminished value for auto haulers moving new vehicles. Tell your agent what you carry and we match the endorsements to it.

What cargo insurance does not cover

Every cargo policy has a list of commodities it will not touch as standard. The ones that trip truckers up most often are:

• Illegal or controlled goods: contraband, marijuana products, tobacco, alcohol, and pharmaceuticals.
• High-value items: jewelry, precious metals, artwork, money, and valuable documents.
• Cargo not listed on the bill of lading, and live animals.
• Freight in storage beyond 72 hours, and explosive or radioactive material.

If you haul something on that list, do not assume you are stuck. We place hard-to-cover commodities through carriers that will write them, and we write monoline cargo policies when you need cargo on its own. Talk it through with your agent before you book the load, not after a claim.

Cargo coverage limits and deductibles

The standard cargo limit for most trucking companies is $100,000, which is what the majority of brokers require. Most policies go up to about $250,000. If you haul loads worth more than your limit, you fill the gap with an excess cargo policy. For example, if your limit is $250,000 and you are moving $300,000 of automobiles, you add excess cargo for the extra $50,000.

Your deductible is what you pay before coverage kicks in. The standard cargo deductible is $1,000, with a $2,500 option if you want a lower premium. One thing worth asking us about: some policies stack a separate deductible on the truck, the trailer, and the cargo, so one wreck costs you three deductibles. We can write coverage that combines physical damage and cargo into a single deductible, so a bad day costs you once.

How much does motor truck cargo insurance cost?

For general freight, cargo insurance is one of the cheaper lines on a trucking policy. Here is what a single truck typically pays by limit:

Higher-risk freight costs more. Reefer loads, electronics, and high-theft commodities push the price up, and adding reefer breakdown coverage runs about $1,000 to $2,500 a year on its own. Across all freight types and limits, cargo lands anywhere from $400 to $8,000 or more per truck per year, commonly $40 to $250 a month. For the full breakdown by freight type and limit, see how much cargo insurance costs, then get an exact rate for your commodity.

Who needs motor truck cargo insurance

If you haul freight for hire, you need cargo insurance, and your broker will almost always require proof of it before they give you a load. It applies across body styles:

• Dry van, flatbed, and reefer tractor-trailers
• Box trucks, hotshots, and cargo vans
• Auto haulers and car carriers, which usually need a $250,000 or higher limit
• Dump trucks and scrap haulers carrying dirt, sand, gravel, or metal for a fee

Cargo is one piece of a full trucking program, alongside your primary liability and physical damage. If you are setting up coverage from scratch, start with commercial truck insurance and add cargo at the limit your freight requires.

How to get cheaper cargo insurance

• Give an accurate commodity list. Quoting the freight you actually haul keeps the rate honest and avoids a denied claim later.
• Carry the limit you need, not more. Match the limit to what your brokers require so you are not paying for coverage you never use.
• Take a higher deductible. Moving from $1,000 to $2,500 lowers the premium if you can carry the risk.
• Ask for a single deductible. Combining cargo and physical damage into one deductible saves money at claim time.
• Keep your loss history clean. Fewer cargo claims is the biggest long-term lever on price.
• Bundle cargo with the rest of your policy. Writing it with your liability and physical damage usually beats a standalone.

Frequently asked questions

What is motor truck cargo insurance?

It is coverage that pays to repair or replace the freight you haul for your customers when it is damaged, stolen, or destroyed in a covered event while in transit. It protects your money and your relationship with the broker or shipper, since it pays the claim quickly instead of leaving you to cover the load out of pocket.

What does motor truck cargo insurance cover?

It covers the load against collision, theft, vandalism, fire, and weather events like windstorm, flood, and hail, plus debris removal after a spill. It does not cover excluded commodities such as jewelry, cash, contraband, or cargo left off the bill of lading. Endorsements can add reefer breakdown and auto-hauler coverages.

How much does cargo insurance cost?

A $100,000 limit on general freight usually runs $70 to $125 a month ($800 to $1,500 a year). Higher limits and higher-risk loads cost more, and across all freight types cargo ranges from about $400 to $8,000 or more per truck per year. Your commodity, limit, deductible, and loss history set the final number.

How much cargo insurance do I need?

Most brokers require at least a $100,000 limit, and that covers the value of a typical general-freight load. If you haul automobiles, machinery, or other high-value freight, you usually need $250,000 or more, and excess cargo above that. Carry a limit that covers the most valuable load you run.

Who needs motor truck cargo insurance?

Any trucker hauling freight for hire, across dry van, flatbed, reefer, box truck, hotshot, cargo van, auto hauler, and dump truck operations. Brokers require it before they tender a load, so in practice nearly every for-hire carrier carries it.

Is motor truck cargo the same as contingent cargo?

No. Motor truck cargo covers the freight on your own truck. Contingent cargo is a backstop for freight brokers when the hauling carrier’s policy does not pay. If you are a freight broker rather than a carrier, see our freight broker insurance instead.

Why choose Trucking Insurance Services

We work in trucking, not in a call center, so we know cargo is where a single bad claim can sink a small carrier. We place cargo with A-rated carriers, write the hard-to-cover commodities other agents pass on, offer single-deductible coverage so one wreck costs you once, and write monoline cargo when that is all you need. Tell us what you haul and we will quote it right.

Get your free quote → or call 855-281-2924 for a same-day rate on motor truck cargo insurance.

Figures are estimates based on the policies we place and current market rates, for general guidance only. Your actual premium depends on your commodity, limit, deductible, radius, and loss history. Get a quote for an exact number.