Motor Truck Cargo Insurance: Cost & Coverage Guide (2026)

Motor Truck Cargo insurance is a distinct policy from the primary auto liability that covers your tractor — it pays for damage to the FREIGHT you're hauling, not the truck. Brokers and shippers require it before dispatch. Premium ranges from a few hundred dollars annually for small local haulers to tens of thousands per year for high-value high-volume operators. Source: Progressive Commercial 2026, Northland Insurance, Lancer, FMCSA 49 CFR 375 (household goods regulations), IRMI Motor Truck Cargo reference.

What Motor Truck Cargo covers

Cargo insurance attaches when the freight is in YOUR custody — from pickup to delivery, including reasonable in-transit stops and brief storage between legs. It covers physical loss or damage to the freight from covered perils.

• Collision / overturn — damage to freight from a covered auto accident.
• Theft — full-truck theft (rare) or partial-load theft (more common, especially at truck stops). Subject to unattended-vehicle theft sub-limits in many policies.
• Fire / lightning / windstorm / hail — natural perils.
• Refrigeration breakdown — sub-limit pricing for reefer cargo when the refrigeration unit fails.
• Off-loading damage — damage during loading or unloading; some policies limit to specific phases.
• Striking of load against bridges / overpasses — load damage from height-clearance collision.
• Salvage / subrogation — carrier may pursue salvage rights and subrogate against responsible parties.

Limit norms by cargo class

Federal household goods rules (49 CFR 375)

Household goods movers operate under separate federal rules (FMCSA 49 CFR 375). Movers must offer customers three liability options for cargo loss:

Movers' cargo policies must support the chosen option. Many professional movers carry $100K-$500K Motor Truck Cargo plus declared-value endorsements. The mover's bill of lading must clearly disclose which option the customer chose.

Common exclusions

Cargo policies have several standard exclusions that catch operators by surprise.

• Improper loading by shipper — if the shipper loaded incorrectly and damage results, many policies exclude the loss. Counter-strategy: document load condition at pickup with photos.
• Customer negligence — damage caused by customer's actions (e.g. forklifting their own freight off your trailer) may be excluded.
• Dishonest acts by driver / employee — theft by the driver or by an employee is excluded; this is the gap a Fidelity Bond fills.
• Contraband / illegal goods — never covered; transporting contraband can void the entire policy.
• Vehicles being towed — covered by Tow Truck On-Hook coverage, NOT Motor Truck Cargo. See our Tow Truck Insurance guide for the on-hook detail.
• Unattended-vehicle theft sub-limit — many policies cap theft from an unattended truck at $5K-$25K even when the overall cargo limit is much higher. Don't leave loaded trailers unattended outside protected yards.
• Mechanical breakdown of refrigeration — covered ONLY if reefer-breakdown sub-limit is purchased; not included in standard cargo coverage.
• Wear / tear / inherent vice — natural deterioration, mold, rust, and inherent product defects are not covered.
• Pollution release from cargo — Pollution Liability is a separate policy.

Refrigerated freight + reefer breakdown sub-limit

Refrigerated (reefer) freight has unique exposure: the cargo can be perfectly intact but spoiled because of refrigeration failure. Standard cargo coverage does NOT pay for refrigeration breakdown — you need a specifically purchased reefer breakdown sub-limit.

• Sub-limit ranges — typically $10K-$50K per breakdown event. Higher sub-limits available at additional premium.
• Trigger conditions — most policies require maintenance documentation showing the reefer unit was properly serviced; many require digital temperature monitoring (e.g., Carrier ELD-paired temperature loggers).
• Time-and-temperature waiting period — many policies have a "warm-up period" (often 24 hours) before breakdown coverage attaches — protects against operators driving with broken units.
• Pre-loss notification — must report breakdown to carrier as soon as discovered; failure to mitigate (continuing to drive with known failure) is a coverage trap.

Shipper / broker minimums (incl. Amazon DSP)

Contingent Cargo vs Primary Cargo

Two cargo policies exist in the lead-up to a load. The motor carrier's Primary cargo policy attaches first; the broker's Contingent cargo policy attaches only if the primary fails or doesn't exist.

Operators sometimes assume that Contingent Cargo at the broker level eliminates the need for Primary Cargo. It does not. The broker requires you to carry Primary Cargo precisely so their Contingent isn't activated.

How much does Motor Truck Cargo cost?

Carriers that specialize in cargo