Motor Truck Cargo Insurance: Limits, Costs, and What Actually Covers Your Load
When a broker emails you a rate confirmation with “minimum $100,000 cargo,” do you know if your policy actually covers it? A lot of owner-operators don’t — and that gap has cost people their entire business.
Here’s what you actually need to know about cargo limits, what they cost, and how to make sure your coverage matches what shippers require.
What Motor Truck Cargo Insurance Covers
Motor truck cargo (MTC) insurance covers the freight you’re hauling if it’s lost, stolen, or damaged while in your care. When a load disappears, arrives soaked, or ends up crushed under a rollover, your cargo policy is what pays the shipper’s claim.
It covers:
- Physical damage to freight from accidents, fire, or weather events
- Theft of an entire load or partial theft from an unsecured trailer
- Loading and unloading damage (most policies, check yours)
- Refrigeration breakdown if you haul temperature-sensitive freight (with a reefer endorsement)
It does NOT cover:
- Your truck or trailer — that’s physical damage coverage (comp and collision)
- Freight you didn’t load yourself (check consignment rules in your policy)
- Certain excluded commodities — auto parts, electronics, jewelry, and alcohol are commonly excluded or sublimited
The $100k Question
A $100,000 cargo limit is the most common minimum requirement you’ll see from brokers. It’s become the industry default for general dry van freight.
What does it actually cost? For most owner-operators hauling general freight:
$100,000 MTC: $900–$1,800/year
The range is wide because underwriters look at your commodity type, loss history, how you secure loads, and what you haul most. Flatbed haulers pay more than dry van — exposed freight is harder to control. Reefer haulers pay more because refrigerated goods are high-value.
What Drives Your Rate Up
- Commodity risk: Auto parts, electronics, and produce are “hot” commodities that thieves target. Expect surcharges or exclusions.
- Loss history: One cargo claim in the past 3 years and your rate jumps significantly.
- Open trailers: Flatbed and step deck expose freight to weather and theft more than enclosed vans.
- High-value loads: Hauling medical equipment, alcohol, or luxury goods? Carriers may decline or require a separate inland marine rider.
What Drives Your Rate Down
- Clean loss history (3+ years claim-free)
- GPS tracking on your trailer
- Air-ride suspension (less damage claims)
- Consistent commodity — underwriters price what they understand
Choosing Your Limit: What Shippers Actually Require
The $100k minimum is a floor, not a recommendation. Here’s what different freight types typically require:
| Freight Type | Common Minimum | Why |
|---|---|---|
| General dry van | $100,000 | Industry default |
| Produce / perishables | $100,000–$250,000 | High value, time-sensitive |
| Auto parts | $250,000–$500,000 | High theft target |
| Electronics | $250,000–$500,000+ | Frequently excluded entirely |
| Construction materials | $100,000 | Lower per-load value |
| Flatbed steel / machinery | $100,000–$250,000 | Load value varies widely |
If you’re running spot loads off load boards, you’ll almost always be fine with $100k. If you’re chasing dedicated contracts with larger shippers, expect $250k or higher as a condition of doing business.
The Problem Most Drivers Miss: Per-Occurrence vs. Per-Load
Some cargo policies have a per-occurrence limit that sounds like $100,000 but is actually split across multiple loads if you’re running doubles or pulling multiple trailers. Read your declarations page carefully.
Also watch for deductibles — a $2,500 cargo deductible on a $5,000 load claim means you’re paying half out of pocket. Most shippers expect you to cover their full loss. Low-deductible cargo policies cost more upfront but protect your relationships with brokers and shippers.
How to Verify Your Coverage Before a Load
Before you accept a load with a cargo requirement, do this:
- Pull your current certificate of insurance
- Find the “Motor Truck Cargo” line — this shows your limit
- Check the effective dates and whether the policy is active
- Verify the commodity isn’t excluded (look for a “covered commodities” section)
If you can’t find that information yourself, call your agent. This should take 10 minutes. Don’t guess.
New Authority? Here’s What to Expect
If you’re a new authority trucking company, cargo insurance is typically bundled with your primary liability and physical damage in a package policy. Most new authorities start with $100,000 cargo as the default. See our new ventures guide if you’re still setting up your operating authority and figuring out what coverage you need from day one.
You can increase limits when you add them — but underwriters will want to understand your commodity mix before they’ll quote higher limits. Be honest about what you’re hauling.
What RMS Writes
At RMS, we write motor truck cargo as part of a complete commercial auto package. We work with carriers that specialize in trucking, which means they understand commodity risk, load securement, and how to price your actual exposure — not a generic commercial truck category.
If you’re not sure your cargo limits match what you’re hauling, request a quote and we’ll review your current coverage as part of the process.
The Short Answer
- $100,000 MTC is the minimum most brokers require
- Expect $900–$1,800/year for a $100k limit on general freight
- Higher-value or higher-theft commodities cost more and may be excluded
- Match your limit to your actual load values, not the broker minimum
- Read your declarations page — deductibles and commodity exclusions matter
- Use our premium estimator for a quick sense of what your full insurance stack might cost
Cargo insurance is cheap relative to what it covers. The mistake isn’t buying too much — it’s not knowing what you have until you need it.