If you are driving a tractor-trailer and will be hauling it often, you need to have cargo insurance. Not only does cargo insurance protect the materials you haul, but it also protects the actual trailer. If your trailer or cargo is stolen, broken, or lost in an accident, the motor truck cargo insurance will cover the loss so you are not put out.
Motor truck cargo insurance is designed to protect the cargo in your truck instead of the vehicle itself. This essential form of business insurance will cover lost or damaged cargo. Most companies require this type of insurance before they let their drivers on the road. That's because it's a great way to protect auto haulers and their businesses from potential losses.
Here, we'll get into the details of how truck cargo insurance can benefit your company and protect you on the road.
What is Motor Truck Cargo Insurance?
When trucks haul products, those products belong to someone else and the owners or manufacturers definitely want their products to get to the intended location without problems. Motor truck cargo insurance is a type of insurance that covers the motor truck cargo in a tractor-trailer.
If the cargo gets lost, damaged, or destroyed, the insurance will reimburse the manufacturer or buyer for the products. Motor truck cargo insurance coverage is mandatory for anyone hauling cargo in a tractor-trailer.
There are many types of cargo insurance, and the type you choose depends on what kind of cargo you carry. You can choose more or less coverage depending on the risks you expect to face and the financial consequences of property loss.
When your cargo is lost or damaged under circumstances that fit the terms of your policy, the insurers will handle the costs involved in replacing it, and occasionally sometimes they'll also include freight charges and other fines.
When you sign up for your insurance policy, you can choose your level of coverage based on the value of the property you transport and its value.
Who Needs Motor Truck Cargo Insurance?
Almost every trucking company requires truck cargo insurance before they let drivers start working. If you own your own vehicle, it isn't required, but it's highly recommended by most experts. Carrier companies protect themselves from direct physical loss of goods with insurance.
Another consideration is the risks you typically face. If you have lost your cargo in the past, maximum coverage may appeal to you to prevent serious financial losses.
Motor truck cargo insurance can benefit anyone with expensive or fragile cargo. If you transport electronics, for example, lost goods can add up quickly.
Another potential scenario is for carriers who transport food and beverage. If your refrigeration or heating equipment fails, the food could all go bad and be unusable when you arrive. However, standard policies don't cover this equipment failure unless it's caused by a disaster like a fire or an accident.
Motor Truck Cargo Insurance: Exceptions and Restrictions
Truck cargo insurance can protect drivers in plenty of situations, but there are a few notable exceptions. Every policy is different, but there are some commonalities.
Truck insurance policies generally exclude personal belongings from the covered property. That means your phone and other personal effects aren't covered by cargo insurance.
Other exclusions include:
- Defective property
- Loss due to packaging issues
- Misconduct or fraud
- Government seizure
- Natural deterioration
- Pest or insect damage
Certain types of property are categorically excluded, such as:
- Live animals
- Jewels and precious metals
- Illegal items
Not all insurance covers loss of freight charges that clients may charge for your failure to deliver their orders right on time. Other policies exclude damage that occurs as you load or unload items or damage that occurs as the goods are sitting on the dock awaiting final distribution.
Debris removal is also separate from your standard policy. This option will cover the loss of goods when they scatter across the highway or fall into a body of water.
As you select your insurance coverage, consider the risks you face regularly and the amount of coverage you need. If your cargo gets lost or damaged regularly, it may be worth it to get the maximum amount of coverage.
Losing property in transit is frustrating for everyone involved. This type of insurance shows clients that your business is responsible and can pay for any losses that may occur.
The Cost of Getting Motor Truck Cargo Insurance Coverage
If you've ever searched for "motor truck cargo insurance near me," you may be wondering how to choose the best policy out of all of those options. The costs of your insurance may be one of the determining factors.
Policies can cost up to roughly $1800 a year. It all depends on the type of coverage you choose, the deductible you choose, and more.
Other factors include your driving history, age, and experience driving, like for typical auto insurance plans.
When it comes to cargo insurance, the type of business you have also comes into play. You may have to pay extra for special features that aren't covered by standard policies. If you focus on one type of cargo, the extra charge may be worth it.
If you're curious about specifics, you can contact insurance companies and ask for quotes!
What Types of Insurance Covers Cargo?
Motor truck cargo insurance covers various types of cargo. In most cases, the type of cargo being hauled plays a huge role in the type of cargo insurance coverage that is needed. While cargo insurance may have various names, it all covers motor truck cargo.
What is the Difference Between Cargo and Freight Insurance?
Freight insurance and cargo insurance are the same. They have different names, but they are both covered by the same type of insurance.
Cargo often refers to small materials, boxes, and packages that are added to the inside of a tractor-trailer.
Freight is often larger, heavier packages that may be carried inside a trailer or on the back of a semi where they are exposed. But both are still considered cargo and are covered by cargo insurance.
What does a Motor Truck Cargo Policy Cover?
Cargo insurance covers all risks of loss or damage to any products or material being hauled or transported by a tractor-trailer. These are required to offer some type of cargo insurance policies, and some manufacturers may insist on other policies that cover the full cost of their products.
Does Cargo Insurance Cover the Trailer?
Yes, while your regular tractor-trailer insurance does not cover your trailer if it is lost or stolen, cargo insurance will cover it. Many drivers make the mistake of thinking that the trailer is considered part of their truck and should be covered by their regular tractor-trailer insurance.
You should always carry cargo insurance, even if your trailer is empty. This will ensure it is safe at all times and can help reduce your risk of experiencing a total loss. If you are ready to learn more about motor truck cargo insurance coverage or if you need a quote and are ready to buy, be sure to check out SoCal Truck Insurance's website.
We offer a variety of different types of trucking insurance, including motor truck cargo policies. We can help you feel safer on the road and give you the peace of mind of knowing that your trailer and everything inside is safe.
Is There a Deductible?
Truck cargo insurance includes a deductible, which is the amount of money you have to pay out of pocket if an incident does occur. Once you pay that amount, your insurance kicks in and pays for the rest of the property loss.
When you select an insurance plan, you choose the limits for your coverage. Choosing a higher deductible generally means that you'll pay less money for your insurance plan. However, it's important to balance the two. If your cargo is stolen or lost,
For example, if you lose $10,000 worth of cargo and your deductible is $3,000, the insurance company will cover $7,000 and the rest will be your responsibility.
Choosing the right deductible and coverage is an important part of making sure your policy is beneficial and reflects your needs.
Get a Cheap Insurance Quote Now!
Motor truck cargo can be very expensive and losing it could be a significant financial blow to any trucking company. You can protect yourself by purchasing an effective insurance coverage plan.
If you're curious about motor truck cargo insurance, you can start by getting a free quote from our insurance company. We offer excellent coverage plans that will insure your cargo as you transport it.
Motor truck cargo insurance means you can be at ease as you transport goods, knowing that you have coverage if they get damaged. It's also a great way to reassure clients and encourage them to do business with you.
We take pride in protecting your business's property in transit. Contact us to get a free quote for truck insurance!
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SoCal Truck Insurance has been protecting people, their possessions, and their businesses for 20 years. Since then we have insured hundreds of thousands with hundreds of plan rates and specials.