How much does cargo insurance cost?
The cost of motor truck cargo insurance depends on factors like the type and value of your freight.
To find your cargo insurance rate, start a quote online, or call us to speak with a trucking insurance specialist. As the #1 truck insurer in America,Δ we offer flexible coverage, expert support, and affordable rates.
Cargo insurance cost factors
The cost of cargo insurance is determined by many of the same factors as the cost of commercial truck insurance, but the type of cargo you carry can have the biggest impact on what you pay.
Type of cargo
Each kind of freight carries unique risks and will have different rates. For example, trucks that haul plastic for manufacturing may have a lower cargo insurance cost than those that transport perishable goods or hazardous chemicals.
Value of cargo
Cargo insurance helps pay for lost or damaged goods, so the value of what you carry makes a difference in your insurance cost. Transporting more expensive goods means you'll need more coverage for your freight. Higher limits offer more protection when it matters most.
Loss history
The fewer cargo losses you've had, the less you might pay for coverage. A long history without incidents or claims shows that you're a safe and responsible driver, which can bring down the cost of cargo insurance.
Operating radius
Semis that haul long distances across state lines will have different risks and rates than a truck that operates within one state. Generally, the further you travel, the more you can expect to spend for cargo coverage.
Type of truck
The type of vehicle you drive affects what you pay. Larger, heavier trucks usually carry more, which means you may need more coverage. Cargo insurance can cost more when there's more to protect.
Calculating cargo insurance rates
Usually, your rate is determined by calculating the total value of the goods you transport plus freight costs and an extra percentage to cover any additional expenses. Your premium is a percentage of that total. The exact percentage depends on some details about you and your business, such as your driving history and how far you travel with your cargo.
For example, imagine two truckers: one hauls high-value, high-risk cargo across the country, while the other transports low-risk products locally for small businesses. The first trucker will likely have higher rates because the value of the cargo is worth more and the delivery radius is greater.
How to get affordable cargo insurance rates
You may qualify for commercial auto discounts, especially if you have other policies like general liability. You can also lower your cargo insurance premiums by avoiding high-risk cargo and maintaining a safe driving record. Making sure your coverage limits are appropriate for the cargo you carry is another way to keep costs in check.
If you're looking for competitive cargo insurance rates, speak with the licensed agents at Progressive Commercial or start a quote online. We can help you get the coverages and limits you need without paying for what you don't.
How much cargo insurance do I need?
It depends. With coverage limits as high as $250,000, we have the flexibility to customize protection for the freight you haul. If you're unsure what limits would be right for you, we're happy to help. Get in touch to discuss your needs and find a policy that fits.
Other trucking insurance coverage to consider
As the #1 truck insurer in America,Δ Progressive Commercial can help you find the right protection for you, your clients, and your cargo. Truckers may also need the following coverages:
Common questions about cargo insurance
What is cargo insurance and why is it important?
Cargo insurance is protection for the goods in your truck. It covers you if your cargo is lost, damaged, or stolen while in transit. It's important for truckers because it minimizes the cost to you if something happens to your haul before you reach your destination.
It also protects your customers from charges tied to an undelivered load, making you a more attractive shipping partner.
Is cargo insurance required for truckers?
Yes. The Federal Motor Carrier Safety Association mandates minimum coverage that all commercial truckers need. What's required depends on the kind of business you run, how many trucks you have, and your cargo.
Also, many customers and partners require more than the minimum amount as a condition of hire. Check your contracts to see what kind of cargo coverage clients expect you to have.
What does cargo insurance cover?
Cargo insurance covers the goods in your truck while they're in transit. It also covers legal expenses if you're sued over a loss, costs related to preventing further loss, and cleanup costs if your load spills debris or pollutants during the journey.
What doesn't cargo insurance cover?
Some kinds of cargo are excluded from this coverage, such as:
- Valuables, like art and jewelry
- Alcohol and pharmaceuticals
- Dangerous cargo, such as explosives
- Contraband and unregistered goods
Some vehicles are also excluded, including garbage trucks, limos, hearses, buses, motor homes, and ice cream trucks.
What's the difference between cargo insurance and general liability?
Motor truck general liability covers damage you cause others, like if someone gets hurt tripping over your goods while you're unloading. Cargo insurance covers damage to the goods themselves due to events like theft or fire.
