Understanding Motor Truck Cargo Insurance

Millions of dollars of cargo are transported in trucks each year, providing massive benefits to the nation's economy and keeping it running. In most cases, carriers will require the company transporting their goods, or the owner-operator, to have cargo insurance. This coverage will protect the owner of the products, as well as a person who is insured, while the cargo is being transported. This coverage can provide financial protection while the transporter is caring for, transporting, and/or in control of the goods.

Cargo Limits And Premiums

Depending on the average load a company or person is transporting, in addition to the types of commodities that are being transported and how far they are traveling, premiums for cargo insurance can vary. On average, the cargo insurance limits are between $20,000 and $100,000. This is a wide range, which is due to the variety of goods truckers can carry. If a trucker is carrying inexpensive garments, it may pay a lower amount than if they are hauling expensive electronics. Many states require drivers to have a minimum amount of motor truck cargo insurance. The owner of the goods most often determines the limits needed for them, and the transporter or transporting company provides evidence to them that they have insurance in at least that amount.

Cargo Policies

Policies dealing with cargo are often not understood because of the various limitations and exclusions that are not always discussed during the quoting process. These exclusions and limitations and have a significant impact on truck drivers, transportation businesses, and individuals with companies. Speaking with a truck broker can be a smart plan, and reading over your policy before purchasing it can be essential.

Exclusions And Limitations

Sometimes there are some limits for particular categories being transported, commodities like garments, liquor, electronics, and others. If a person’s cargo limit is $50,000, because they usually carry garments, and they are asked to transport electronics that are valued at four times as much, your policy may only cover goods for a maximum loss that is much less than the $200,000 goods being transported are worth. This is important to truckers and transporting companies because they will need to balance things out based on the limits they have.

Theft Coverage

Coverage for theft is often at a lower amount overall. It can also have a higher deductible. When you get a quote for motor truck cargo insurance, make sure you are familiar with what your policy covers and what your needs are.

Unattended Vehicle Exclusion

It is common to find unattended vehicle exclusions in cargo policies. This is states that if your vehicle is left unattended, and there is a loss during this time, there is no coverage. This affects drivers who leave their truck loaded at their home, at truck stops, or in other places. Use the tools at Motor Insurance to find the best policies for motor truck insurance coverage for cargo. Comparing policies from multiple companies is a smart plan when it comes to finding the best cargo insurance policy for you.