Motor Truck Cargo Insurance
How motor truck cargo insurance works, who asks for it, what limits are common and what affects the price, with a checklist for requesting a quote.
Coverage for the freight you haul: what it is, who requires it and what to check in a policy.
What cargo insurance covers
Motor truck cargo insurance pays for loss of or damage to the freight you are hauling, for example in an accident, fire or theft, subject to the policy terms. It does not replace liability insurance, which covers injury and property damage you cause to others.
Who asks for it
For most general freight, cargo coverage is not a federal requirement for carriers, but brokers, shippers and leasing carriers commonly require it in their contracts. A limit around $100,000 is a common request, though the right limit depends on the value of your loads.
What to check in a policy
- Commodities what you haul affects rates; some commodities are excluded or limited.
- Limit per load and per unit make sure it matches your highest-value load.
- Deductible what you pay before the insurance pays.
- Refrigerated cargo ask whether refrigeration breakdown is covered.
- Exclusions for example unattended vehicles or certain theft situations.
What affects the price
Cargo type, value of loads, limits and deductible, your operating radius, driving record, and claims history all play a part.
What to have ready for a quote
- Cargo type dry freight, refrigerated, building materials, cars, sand and gravel, or other.
- Cargo limit for example $100,000, or what your broker requires.
- Operation local or interstate, and the equipment you run.
Questions
Is cargo insurance required by law?
For most for-hire general freight there is no federal cargo insurance minimum, but customers and brokers frequently require it by contract. Household goods carriers are treated differently. Check current FMCSA rules for your situation.
What cargo limit should I choose?
Start with the highest-value load you expect to haul and any limit your broker or shipper requires, then discuss deductibles and exclusions with your agent.