What Does Cargo Insurance Cost?
Drive Down Your Cargo Insurance Costs with NITIC
When it comes to securing the best deal on cargo insurance, NITIC has you covered. By simply filling out one quick form, you can receive three competitive quotes, allowing you to choose the best option for your business needs. At NITIC, one of the most common questions we are asked is “How much does cargo insurance cost?”. Let’s explore the costs, factors affecting premiums, and essential coverages for your trucking cargo insurance.
Understanding the Cost of Cargo Insurance for Truckers
The cost of cargo insurance for truckers can vary significantly depending on several factors. Generally, the annual premium ranges from $400 to $1,800. If you opt for a standalone cargo insurance policy, the monthly cost might be between $35 and $150. Here are some typical costs based on policy limits:
| Policy Limit | Typical Range in Cost (per year) |
|---|---|
| $50,000 | $400 – $700 |
| $100,000 | $800 – $1,400 |
| $250,000 | $1,100 – $1,800 |
Factors Influencing Cargo Insurance Costs and Premiums
Several factors determine the cost of your cargo insurance premium. Here are the three most significant ones:
- Type of Commodity: Insuring high-risk commodities like natural gas will cost more than insuring lower-risk items such as hard plastics.
- Policy Limits: Common cargo insurance limits are around $100,000. However, if you’re hauling high-value items like cars, you may need limits up to $300,000 or even $1 million.
- Loss History: Your history of claims and losses will impact your premium. Previous losses are factored into the calculation.
Essential Coverages in a Trucker’s Cargo Policy
Choosing the right coverages for your cargo policy is crucial to ensure you are fully protected. While lower-cost policies may be tempting, they might lack essential coverages. Here are some key coverages to consider:
- Pollution Liability: Covers costs to clean up spilled goods like gasoline.
- Debris Removal: Covers costs for removing cargo dropped onto roadways and waterways.
- Theft and Hijacking: Covers losses from burglary or hijacking of goods.
- Sue and Labor Coverage: Covers further losses from damaged goods after an incident.
- Earned Freight Coverage: Covers income lost due to damaged cargo that can’t be delivered.
- Infidelity/Dishonesty Coverage: Covers losses from theft committed by the driver.
- Water Damage: Covers losses from trailer leaks and wetness.
- Loading and Unloading Coverage: Covers losses during the loading and unloading of cargo.
- Reefer Breakdown: Covers losses associated with refrigeration equipment malfunction.
Cargo Insurance Limits and Their Impact on Cost
Each coverage in your cargo policy has its own limits, which can often be adjusted as needed. Here are some typical limits for a cargo insurance policy:
| Coverage | Typical Limit |
|---|---|
| General Cargo Insurance | $100,000 – $300,000 |
| Pollution Liability | $10,000+ |
| Debris Removal | $10,000 – $25,000 |
| Earned Freight | $1,000 – $25,000 |
| Catastrophe | $1,000,000 |
Finding the Best Combination of Cost and Coverage
The type of commodity you haul plays a significant role in determining your insurance needs. Whether you are transporting steel, hay, water, gas, cars, or logs, it’s crucial to ensure your cargo policy covers all possible scenarios. Some policies might exclude coverage if the truck is left unattended, so it’s essential to review these details with your agent.
Get Competitive Quotes with NITIC
At NITIC, we aim to provide you with the best combination of cost and coverage for your cargo insurance needs. By bringing three agents to compete for your business, we help you find the right coverage at the best price. Whether you’re a steel hauler from New York or a car hauler from Miami, we are here to help you save on your cargo insurance.
Fill out our quick form today and let your quotes roll in. Choose the winner and drive down your cargo insurance costs with NITIC!
