The cargo you carry in your truck is your livelihood. If anything happens to it, it could negatively impact your business. That’s why it’s crucial to secure the proper insurance to protect the cargo you haul.
The issue: Cargo truck insurance can be costly.
This article will explain how much cargo truck insurance costs, what factors impact premium prices, and the steps you can take to control policy costs.
- How much does cargo truck insurance cost?
- How much is the average cargo truck insurance cost per month?
- What factors go into calculating cargo truck insurance premiums?
- How can I reduce cargo truck insurance costs?
- What coverages should be included in a cargo truck insurance policy?
- Best cargo truck insurance companies
How much does cargo truck insurance cost?
Based on extensive research, insurance premiums for cargo truck insurance typically range from $400 to $1,800 per year. That breaks down to $35 to $150 per month.
Cargo truck insurance policy limits play a big part in how much you’ll pay for coverage. Here are some benchmark premium costs for cargo insurance at different limits:
|Cargo truck insurance coverage limits||Costs|
|$50,000 policy limit||$400 – $700 a year|
|$100,000 policy limit||$800 – $1,400 a year|
|$250,000 policy limit||$1,000 – $1,800 a year|
Quite simply, if you typically haul fewer inexpensive items as cargo, you’ll pay less than if you carry a lot of expensive goods.
These are just the averages. Be sure to shop around with a few companies or work with a broker or agency like Simply Business, commercialinsurance.net, or Smart Financial to compare several quotes before making your final decision.
How much is the average cargo truck insurance cost per month?
The average cargo truck insurance cost per month is $95. The actual cost varies by the policy’s coverage limits.
|Cargo truck insurance coverage limits||Average monthly costs|
|$50,000 policy limit||$46 per month|
|$100,000 policy limit||$92 per month|
|$250,000 policy limit||$117 per month|
What factors go into calculating cargo truck insurance premiums?
The top three factors that insurers use to calculate cargo truck insurance premiums are:
What’s being transported.
Insurers consider the risk and value of what you haul.
- Risk: It’s much riskier to haul natural gas than plastic goods, so you’ll pay more for cargo truck protection if you carry natural gas.
- Value: You’ll pay more for cargo coverage if you carry expensive furniture rather than cheaper things like canned goods.
Cargo policy limits
As covered in the previous section, the higher your cargo truck policy limit, the more you’ll pay for coverage. The most common limit for cargo coverage is $100,000. If you haul cars, your limit may need to be $250,000 or more. Some truckers require $1,000,000 of cargo insurance, which can be pricey.
Claims on your cargo truck insurance over the last three years will be factored into your premium prices. A large claim or several smaller ones could up your costs.
How can I reduce cargo truck insurance costs?
Below are a few ways you can reduce your cargo truck insurance costs:
Compare several quotes
A final way to lower your insurance costs without sacrificing coverage is to shop around. Get quotes from at least three insurers to compare coverages and premiums. Different insurance companies evaluate risk in different ways, and you may find one willing to cover your unique risks at a lower price.
Choose higher deductibles
One way to reduce your cargo truck insurance premium is to choose higher deductibles. The deductible is the amount you must pay out of pocket before your insurance coverage kicks in. If you decide to do this, you always need to have enough cash to pay your deductible if you ever experience a cargo-related loss.
Maximize your discounts
Another option is to take advantage of all the discounts due you. You can earn them by bundling multiple types of insurance with a single provider, maintaining a clean driving record, implementing safe driving programs, and paying for your coverage up-front annually rather than in installments.
You should also take care when loading and unloading your cargo and while transporting it. This will help prevent losses that could cause your insurance premiums to increase.
Reduce unnecessary coverage limits
Not only does your insurance come with an overall policy limit, the individual coverages have their own limits, as well. Some standard coverage limits are:
- General cargo insurance: $100,000 to $300,000
- Pollution liability: $10,000+
- Debris removal: $10,000 to $25,000
- Earned freight: $1,000 to $25,000
You must always have enough coverage to protect the cargo you haul and your livelihood. However, you can control your cargo truck coverage costs by working with your agent or insurance company representative to eliminate unnecessary protection and reduce limits that are too high.
What coverages should be included in a cargo truck insurance policy?
The cost of cargo insurance also depends on what the policy covers. Some cut-rate policies may be tempting, but they could lack essential coverages, putting you at significant risk. Work with your agent or insurer when you get quotes to ensure you are covered for all the risks you face.
Here are some common coverages you may want to include in your cargo truck insurance policy:
- Pollution liability covers costs to clean up environmentally harmful spilled cargo, such as gasoline.
- Debris removal pays the costs of clearing cargo dropped onto roadways and into waterways.
- Theft pays for stolen cargo.
- Hijacking covers costs associated with highjacked cargo.
- Sue and labor coverage pays to prevent further losses to damaged goods after an incident has occurred.
- Earned freight coverage pays income lost because damaged cargo can’t be delivered.
- Infidelity/dishonesty coverage pays for losses when a driver steals cargo.
- Water damage pays for losses resulting from trailer leaks and other sources of wetness.
- Loading and unloading covers cargo damage that happens when placing it on and removing it from your truck.
- Reefer breakdown pays for losses that occur when refrigeration equipment breaks down.
Always review your cargo truck insurance quotes carefully to ensure all the risks you face are covered adequately.
Best cargo truck insurance companies
Hundreds of insurance companies offer cargo truck insurance. It can be confusing trying to find the best ones for you. We have done the research and here are our recommendations of the best cargo truck insurance companies for your consideration:
- Simply Business: Best for comparing quotes from multiple providers
- Progressive: Best for discounted coverage
- Sentry: Best for personalized service
- Great American Insurance Group: Best truck insurance specialist
- NITIC: Best for affordable motor truck cargo coverage
What’s important is that you get at least three quotes from different carriers to compare coverages and costs to find the best combination for you. Cargo truck insurance is too important to take chances.