Mayflower Insurance

insurance trucking

What Is Motor Truck Cargo Insurance? How Much Is It?

What Is Motor Truck Cargo Insurance? How Much Is It?

Trucking companies are often required to provide motor truck cargo insurance to their customers. You can be responsible if the property you carry is not in a good condition when you provide cargo transportation services. Vehicle collisions, overturns, fires, and theft are just some of the common risks that can destroy your cargo.

Motor Truck Cargo Insurance


There are a number of ways you can protect yourself against these perils:

  • Use a trucking insurance policy that covers damages from accidents and cargo loss in case of theft.
  • Ensure your liability coverage is high enough for any losses incurred through the use of your company’s trucks.
  • Purchase collision coverage if your vehicles are involved in accidents while transporting loads.
  • Make sure that all shipments have valid insurance policies in place before they leave your facility, as well as after they arrive at their destination.
  • Register with the National Transportation Safety Board (NTSB), so it can be investigated properly when an accident occurs.

Cargo insurance is a type of insurance that protects your business from the financial costs associated with transporting cargo. It covers the loss or damage to your cargo during transit, including theft and accidents. While most cargo insurance policies cover all types of goods — including perishable items — there are also policies available for specific types of cargo, such as heavy equipment or automotive parts.

What is Motor Truck Cargo Insurance?

A motor truck cargo insurance policy protects your goods and property while a motor carrier is transporting them. Freight carriers are responsible for protecting the value of client property. The Federal Motor Carrier Safety Administration (FMCSA) requires Motor Truck Cargo Coverage for vehicles and companies involved in household goods transportation (e.g., moving companies). There is a good chance that your company will require you to have it. Depending on the type, amount, and distance of the cargo which you will transport and how long it takes for the transport to complete, premium costs and limits may vary. For your business, you should consult with your insurer to ensure that you have the right coverage.

Motor Truck Liability Coverage protects you against losses arising from damages or injuries sustained by third parties while they are in your possession or control, but not while they are traveling with you. Suppose a vehicle carrying your goods is involved in an accident. In that case, this coverage can help pay for medical expenses or other losses incurred by drivers or passengers injured because of an accident involving your vehicle. If you get to know that there is some injury on your property while they are working on it, they will get the insurance money as the insurance will also cover it.

What property you will cover by Motor Truck Cargo Insurance?

When your clients’ cargo is in your custody, Motor Truck Cargo Coverage protects it. Your insurer will pay for damages that can happen by a covered peril if your company is responsible for loss. Among the common perils covered are fire, collisions, water damage, refrigeration failure, and theft. Regardless of whether a covered peril causes damage to your vehicle, other vehicles, or any other property, any damage to your own vehicle, other vehicles, or cargo in transit will not be able to get a refund.

Standard commercial auto policy or as an add-on endorsement will also increase if we add the above. It only applies to items transported via motor truck at the time of loss. If your vehicle gets in an accident without transporting cargo at the time of loss (for example, if you are driving home from work), this coverage does not apply — you can add it as an additional endorsement or policy modification.

Risks in Motor Truck Cargo Insurance

Cargo Coverage for Motor Trucks provides coverage for the transportation of goods by motor trucks. Motor vehicle insurance covers the transportation of cargo, as well as the shipping or delivery of the cargo. And if the cargo is not in the condition like the way in the starting company will need to pay.

It is possible to offer Motor Truck Cargo Coverage on an all-risks or named peril basis. Policies that cover all risks will cover all causes of loss, with the exception of those that are specifically unintentional. Policy names only cover the risks that will be there in the document. Due to their comprehensive coverage, all-risks policies usually have higher premiums.

Factors that affect the Motor Truck Cargo Insurance Cost

  • The types of insurance protections that you and your business requirements will determine the type of insurance policy that is appropriate for you and your business. Each type of insurance policy will have a different cost.
  • Operational factors, including your business’s unique circumstances and the risks you face on a daily basis, will influence the price.
  • A new truck tends to be more expensive to insure due to its high cost of replacement or repair. The cost of insuring heavy vehicles is higher because they pose a greater risk of causing greater damage in the event of an accident. Of course, the more you insure, the higher your insurance premium.
  • A larger operating radius will result in a higher cost. It is more likely that you will get into an accident if you have a large operating radius since there is less familiarity with the routes.
  • Depending on where your business operates, your rates will vary.
  • You will be able to save on your insurance premiums if you store your trucks in a secure area. The cost of parking a truck in an open lot or in a public area will be higher. The cost of parking the truck in a garage or in a closed yard will be less.
  • There are certain types of cargo that are more hazardous to transport due to their weight, cost, or potential danger in the event of an accident. The type of insurance can justify the cost you have to paywhile buying the insurance. Truck accidents involving heavy construction equipment, for instance, are likely to cause more damage than accidents involving dump trucks transporting sand.
  • A driver with a history of traffic violations will have to pay a higher premium for their insurance. The best thing you can do is to ensure all drivers have clean driving records, as even a minor traffic violation can result in a significant increase in insurance premiums. Many insurance carriers provide safety guides and resources for drivers; it is a good idea to consider investing in driver safety training. When working under your own authority, any violations in your USDOT operating history. They can also look there for any past cases.
  • An individual’s deductible is the amount of money that they are responsible for paying before their insurance coverage kicks in. As a result, your insurance premium will be less expensive if your deductible is higher.
  • Your policy limits are the maximum amount that your insurance company will cover in case of a claim. It will play an important role in determining how much your monthly premiums will be. Currently, the FMCSA requires truckers with a federal filing to have at least a $750,000 commercial standard liability limit or a $1,000,000 commercial standard liability limit. CSL stands for a combined single limit – this is the maximum amount an insurance company will pay per incident.


Q1. What is covered under cargo insurance?

Ans. Basically, it provides protection to the cargo in case it gets stolen or destroyed during transportation.

Q2. What is the difference between cargo and freight insurance?

Ans. Freight insurance is the add-on service to the cargo insurance, an extra set of protection for the truck’s freight or cargo.

 Q3. What is a motor truck cargo policy?

Ans. It acts as a safeguard to the cargo in transit or while loading and unloading the goods from the truck.

Q4. What are the two kinds of cargo insurance policy?

Ans. All risk and named perils are the two things that are covered under the cargo insurance policy.

Q5. What is Motor cargo liability?

Ans. This type of insurance protects the owner and the freight while transporting.

insurance trucking

Collision Truck Insurance – What Is It & How Does It Work?

Collision Truck Insurance – What Is It & How Does It Work?

Collision Truck Insurance is one of the most liked insurance in a policy because it helps drivers to pay for truck repairs even if they are at fault. It is seen almost everyone buys this insurance to safeguard their expenses, and also it is easily claimable. Due to its unexpected usage, the premiums can be high. Although you must note that it is not mandatory in any of the states in the USA, it is something the businessman buys to reduce expenses, which might strike them at any moment. This type of insurance is suitable for everything, but we are here going to discuss the insurance related to trucks and collisions related to them.Collision Truck Insurance - What Is It & How Does It Work?

What Are The Things Collision Truck Insurance Covers?

Collision truck insurance covers the trucks when they are either struck or hit something by themselves. Here is a list of things that will help you get the claim under Collision Truck Insurance:

  • Another vehicle – it can be anything
  • Telephones poles
  • Guard rail on the side of a road where you drive
  • Fences and signs at the corner of the road
  • Trees and shrubs at the end of the road and
  • Homes and other buildings built on the road

Do you know, as per the policy of the company you bought, it might cover all the expenses when it is a hit-and-run or when the vehicle is soiled or broken it will pay for all the repairs, and in some cases, it will pay for everything if they are done while the truck was on the road. We always advise getting a consult from an experienced agent because you should always know what is covered and what is not covered in the insurance.

What Are The Things Which Collision Truck Insurance Doesn’t Cover?

When you are not at fault, then also this policy will cover the expenses of the truck repairs, but here are a few places that the insurance won’t cover, and you need to buy different insurance policies for each type of claim you need:

  • Damages done to the other vehicle – will not be covered
  • Damages which is done to the pedestrian and animals by the truck
  • Damages are done by natural disasters like fire, theft, earthquake, storms, etc.
  • The insurance will not cover injuries that are done to the body of other vehicles

Now, let us discuss a brief difference between Comprehensive Insurance & Collision Truck Insurance.

Differences betweenComprehensive InsuranceCollision Truck Insurance
It CoversEverything which is not in your control.It covers only things pertaining to the truck owner.
It Doesn’t CoverIt covers everything.It doesn’t cover other than things pertaining to the truck owner.
Is It Needed?It is not required mandatorily by any state but depends on the vehicle owner.It is not required mandatorily by any state but depends on the vehicle owner.
How Much Does It Cost?It costs less than collision insurance.It costs more than collision insurance.
Which Is Important To Buy?Both should be bought to overcome all the expenses in the case of an accident.Both should be bought to overcome all the expenses in the case of an accident.
It Depends On The Place Where You LiveIf the trucks travel long distances and are in high-risk areas, both are needed to be bought.If the trucks travel long distances and are in high-risk areas, both are required in order to be bought.
DeductibleYesYes, it is
The Limit of the coverageActual value of cashActual value of cash

Let us explain to you with an example why you should get both insurances for the smooth functioning of your business.

Imagine Alan’s truck met with an accident, and the owner of the other truck is entirely at fault. Then the driver’s liability insurance will come into effect, and that policy will pay the expenses. Once you know that the other driver is at fault, you file a claim from the insurance company. Now you realize that the insurance cannot pay for all the expenses, the collision truck insurance will come into effect. While the collision will pay for the truck’s repairs, the comprehensive will pay for the rest of the expenses.

Do You Really Need Collision Truck Insurance?

As you must have seen, many insurance types are dependent on the value of the vehicle and the types of accident which has happened; the value diminishes with time, as well as how many claims you have already taken on the truck as per the driving license. If you do not have a loan or a lease that is required, this Collision Truck insurance will cost you a fortune, and the value you will get after the claim is filed will be way less than the amount of the premium you have paid a lot more.


Q1. Is collision insurance required?

Ans. No, there is no state which has made collision insurance mandatory for the truck owner. But there is no harm in buying one with comprehensive insurance as it covers complete insurance of the trucks that are involved in the accident as and when that happens.

Q2. Can you drop the insurance?

Ans. One can drop the collision insurance because when the total amount of the insurance gets higher than the market value of the vehicle, that is when the need for this insurance becomes redundant. 

Q3. Does collision insurance cover the vandalism of the truck?

Ans. It is not covered as it has only become active at the time of the accident, but comprehensive insurance can help you out as it might cover as per the terms and policy of each insurance company.

Q4. Do you need collision insurance for an old truck?

Ans. The truck’s age is not a good variable to decide if you need collision insurance because even a 15-year-old truck will be needed to have it like the brand new one. In both cases, the law doesn’t require one, but it is always good to have comprehensive collision insurance to protect the whole vehicle from all the problems that might come along the way. 

Q5. Does collision insurance cover rental trucks?

Ans. If you have collision insurance coverage, the rental car might be covered, but then you have to check with the state and the insurance company policies before making a decision.