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.
What motor truck cargo insurance covers
- 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 such as reefer breakdown, earned freight, and constructive total loss and diminished value for auto haulers. See car hauler insurance.
What cargo insurance does not cover
- 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
Cargo coverage limits and deductibles
The standard cargo limit for most trucking companies is $100,000. 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. The standard cargo deductible is $1,000, with a $2,500 option if you want a lower premium. We can write coverage that combines physical damage and cargo into a single deductible.
How much does motor truck cargo insurance cost?
Motor truck cargo cost by limit (general freight, single truck)
| Cargo limit | Typical cost |
|---|---|
| $100,000 | $70 to $125/mo ($800 to $1,500/yr) |
| $200,000 | $100 to $150/mo ($1,200 to $1,800/yr) |
| $250,000 | $140 to $210/mo ($1,700 to $2,500/yr) |
Higher-risk freight costs more. Reefer loads, electronics, and high-theft commodities push the price up. Get an exact rate for your commodity.
Who needs motor truck cargo insurance
- 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
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.
- Carry the limit you need, not more. Match the limit to what your brokers require.
- Take a higher deductible. Moving from $1,000 to $2,500 lowers the premium.
- 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 liability and physical damage usually beats a standalone.
Frequently asked questions
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 covers the load against collision, theft, vandalism, fire, and weather events, plus debris removal after a spill. It does not cover excluded commodities such as jewelry, cash, or contraband.
A $100,000 limit on general freight usually runs $70 to $125 a month ($800 to $1,500 a year). Your commodity, limit, deductible, and loss history set the final number.
Most brokers require at least a $100,000 limit. If you haul automobiles or machinery, you usually need $250,000 or more.
Any trucker hauling freight for hire. Brokers require it before they tender a load.
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.
Why choose Jaikar Insurance Services
We work in trucking, 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, and write monoline cargo when that is all you need.
Get your free quote → or call (833) 371 5800.