Motor Truck Cargo Insurance
What is Motor Truck Cargo Insurance?
Motor truck cargo insurance—often called cargo insurance—is a type of inland marine insurance designed to protect truckers and freight haulers from financial loss due to cargo damage or theft during transit. This coverage is a critical part of a trucking insurance policy, alongside auto liability and physical damage coverage.
As a for-hire trucker, you need to assure your clients that their cargo is safe or that they’ll be reimbursed in case of damage. Whether due to theft, accidents, or environmental factors, cargo losses can be financially devastating. Cargo insurance helps mitigate these risks and ensures legal liability protection for truckers.
How Much Does Cargo Insurance Cost?
The cost of motor truck cargo insurance typically ranges from $400 to $1,800 per year, depending on several factors:
- Type of cargo – High-risk loads (e.g., pharmaceuticals, electronics, seafood) have higher premiums.
- Coverage limits – Policies typically range from $50,000 to $250,000, with $100,000 being the most common.
- Deductibles – Higher deductibles reduce premiums, but you’ll pay more out-of-pocket in a claim.
- Trucking experience & claims history – Safer drivers with fewer claims often receive lower rates.
- Location & operating radius – Insurance costs can vary based on routes and risk exposure.
To get the best cargo insurance rates, compare multiple providers and tailor your coverage based on your specific hauling needs.
Standalone Cargo Insurance vs. Package Policies
Should you buy standalone cargo insurance, or is it better to bundle coverage?
For most owner-operators, a package policy that includes cargo, primary liability, and physical damage insurance is more cost-effective. However, in some cases, standalone cargo coverage might be a better option—especially if you already have a general trucking policy in place.
It’s smart to shop around and compare both approaches to determine which option saves you the most money while providing the best coverage.
Motor Truck Cargo Insurance Limits
While the federal minimum requirement for cargo insurance is just $5,000, this is outdated and far too low for modern trucking needs. Most carriers and freight brokers require at least $100,000 in coverage, with higher limits available for valuable loads.
- $50,000 – $250,000 – Typical cargo insurance limits.
- $100,000 – Most common policy limit required by shippers.
- $250,000+ – Used for specialized, high-value freight.
Always verify that your cargo insurance policy matches the value of the loads you’re hauling. Many shippers won’t work with truckers who lack sufficient coverage.
Get the Best Motor Truck Cargo Insurance Quotes!
Finding affordable cargo insurance doesn’t have to be complicated. We make it easy by connecting you with three top-rated agents in your state who will compete for your business.
- Compare multiple quotes in minutes.
- Find competitive pricing for your specific cargo.
- Secure comprehensive protection for your trucking business.
Always verify that your cargo insurance policy matches the value of the loads you’re hauling. Many shippers won’t work with truckers who lack sufficient coverage.
Learn More: Truck Insurance Essentials
Stay informed and make smart coverage decisions by exploring our comprehensive guides: