How much does cargo insurance cost in 2026?

Typical cargo insurance costs

Published cargo pricing data is thin, because most trucking insurers quote it as part of a package. Insureon, an online agency, reports that trucking companies buying motor truck cargo through it pay an average of $129 a month. TechInsurance, part of the same group, reports the same $129 a month as a median, or $1,553 a year.

Cargo is usually a modest share of the total. The same TechInsurance data puts commercial auto, the liability and physical damage coverage on the truck itself, at a median of $816 a month for trucking businesses. If a quote shows cargo costing more than your auto liability, check the limit, the commodity listed and any refrigeration coverage before you sign.

How insurers price cargo coverage

Progressive Commercial explains that a cargo rate usually starts from the total value of the goods you haul plus freight charges and an extra percentage for other expenses. Your premium is a percentage of that total, and the percentage depends on details such as your driving history and how far you travel. Progressive says the type of cargo you carry can have the biggest effect on what you pay.

The main factors insurers look at:

• Commodity: Progressive gives the example that hauling plastic for manufacturing may cost less to insure than perishable goods or hazardous chemicals.
• Load value and limit: more valuable freight needs a higher limit, which raises the premium.
• Cargo loss history: fewer past cargo claims can mean a lower rate.
• Operating radius: long-haul, interstate trucks generally pay more than trucks that stay local.
• Truck type: bigger trucks carry more, so there is more to protect.
• Coverage form: Insureon notes that open perils policies, which cover every risk not excluded, generally cost more than named perils policies.

Do you need cargo insurance, and how much?

For most freight, cargo insurance is not a federal requirement. FMCSA’s filing chart lists a $0 cargo requirement for for-hire property carriers hauling general freight. The exception is household goods: under 49 CFR 387.303(c), movers of household goods need at least $5,000 of cargo coverage per vehicle and $10,000 per occurrence, filed on Form BMC-34 or a BMC-83 bond. States can add their own rules for intrastate carriers.

In practice, brokers and shippers set the number. TQL, a large freight broker, requires carriers to have at least $1 million in auto liability and a $100,000 cargo policy, plus reefer breakdown shown on the certificate for refrigerated loads.

Match the limit to your most valuable typical load, not your average one. Progressive Commercial says its cargo limits go as high as $250,000, so if you regularly haul loads worth more, such as electronics or a $1 million load, expect to need a specialty insurer or extra coverage, priced individually.

Cargo insurance by truck and operation

There is no reliable published average by vehicle type, but the pricing factors above explain most of the differences. A semi running interstate general freight usually needs the $100,000 limit brokers ask for and pays for the long radius. Box trucks and cargo or Sprinter vans hauling for brokers or delivery networks are often asked for the same certificate, although local routes and lower-value loads can help on price.

Hotshot and flatbed haulers pay more when they move heavy equipment or machinery worth more than their limit. Reefer carriers need refrigeration breakdown coverage; Progressive offers it as a separate cargo option because spoilage from temperature changes is not covered by every cargo policy. Dump trucks are on Progressive’s list of trucks that typically carry cargo coverage, but a dump operator hauling low-value gravel for its own jobs may face little cargo exposure, so contracts usually decide.

What cargo insurance covers and excludes

Progressive Commercial’s cargo coverage pays for freight that is lost, damaged or destroyed by events such as accidents, fire, theft and vandalism. It can also pay debris and pollutant cleanup after a spill, sue and labor costs to prevent further damage, and earned freight on an undelivered load. Insureon adds that cargo policies can cover legal costs when a customer sues over lost goods.

Exclusions are where claims fail, so read them before you compare prices:

• Art, jewelry, money and paper (Progressive)
• Pharmaceuticals, tobacco and alcohol other than beer or wine (Progressive)
• Cargo stored for more than 72 hours (Progressive)
• Items not listed on the bill of lading, rate confirmation or other shipping documents (Progressive)
• Inherent vice such as spoilage, wear and tear, and market delays (Insureon)

How to lower cargo insurance costs

Most savings come from buying the right limit and keeping your cargo record clean.

• Buy the limit your contracts require and your loads justify. Paying for $250,000 when every broker you work with asks for $100,000 adds cost without adding work.
• Choose a deductible you could actually pay on a damaged load.
• Describe your commodities accurately. Listing high-risk freight you rarely haul raises the rate; leaving off freight you do haul can leave a claim uncovered.
• Avoid, or quote separately, commodities insurers treat as high risk.
• Protect your loss history with good securement, locked and attended parking and documented reefer temperatures.
• Ask about multi-policy discounts; Progressive says bundling policies such as general liability can lower the cost.
• Compare several insurers, since appetite for commodities and radius varies widely. A broker such as Florin can compare cargo quotes from several insurers alongside your auto liability.