As a trucker, owner-operator, or fleet owner, you know that protecting your cargo is just as important as keeping your rig in top shape. But when it comes to cargo insurance, do you need a permanent policy, or is short-term coverage the better option?
Understanding the difference between these two types of cargo insurance can help you save money, stay compliant, and ensure that your loads are protected at all times. In this post, we’ll break it all down so you can choose the best coverage for your trucking business.
Why Do Truckers Need Cargo Insurance?
Cargo insurance protects truckers and trucking businesses from financial loss due to cargo damage, theft, or accidents. While general liability and primary trucking insurance cover damages to people or property, cargo insurance specifically covers the freight you’re hauling.
Whether you’re running a semi-truck, box truck, dump truck, tow truck, hotshot rig, or any other commercial truck, having the right cargo insurance is essential. Many brokers, shippers, and freight carriers require proof of cargo coverage before you can even book a load.
So, what’s the difference between permanent and short-term cargo insurance, and which one should you choose? Let’s dive in.
Permanent Cargo Insurance: The Right Choice for Frequent Haulers
What is Permanent Cargo Insurance?
Permanent cargo insurance is a long-term policy designed for truckers and fleets that haul freight regularly. This type of policy provides continuous coverage, meaning you don’t have to worry about purchasing insurance for each load—it’s always in place.
If you’re an owner-operator, a small fleet, or a trucking company with steady contracts, permanent cargo insurance is a cost-effective and convenient solution.
How Much Does Permanent Cargo Insurance Cost?
The cost varies based on:
✅ Type of Cargo – High-value or hazardous loads cost more to insure.
✅ Truck Type – A tractor-trailer hauling general freight may have lower rates than a tow truck or hazmat carrier.
✅ Coverage Limits – Higher limits mean higher premiums.
✅ Driving History & Claims – Fewer claims and a good driving record can help lower your costs.
On average, permanent cargo insurance costs $400 to $1,200 per month, depending on these factors.
Pros of Permanent Cargo Insurance:
✔️ Continuous Coverage – No need to buy coverage for each load.
✔️ Cost Savings Over Time – If you haul freight regularly, this option is usually cheaper.
✔️ Peace of Mind – You’re covered, no matter what load you take.
Cons of Permanent Cargo Insurance:
❌ Higher Upfront Costs – Monthly premiums may be more expensive than short-term policies.
❌ May Not Be Necessary for Occasional Haulers – If you only haul a few loads a month, this may not be the best option.
➡️ Want to see if permanent cargo insurance is right for you? Get a free quote today at CargoPolicy.com!
Short-Term Cargo Insurance: Ideal for One-Time or Occasional Loads
What is Short-Term Cargo Insurance?
Short-term cargo insurance (also called trip or load-specific cargo insurance) is a temporary policy designed for truckers who haul freight occasionally or on-demand. This is a pay-as-you-go option, meaning you only purchase coverage when you need it.
Did you know that you can purchase short-term cargo insurance within only a few minutes? Click here to start your application online.
It’s perfect for:
🚛 Hotshot truckers who take on sporadic hauls.
🚛 Owner-operators who want to test new lanes or brokers before committing to long-term contracts.
🚛 Truckers who take seasonal jobs and don’t need year-round coverage.
How Much Does Short-Term Cargo Insurance Cost?
Short-term cargo insurance is usually priced per load and can range from $50 to $200 per trip, depending on:
✅ Cargo Value & Type – High-value or high-risk loads cost more.
✅ Trip Distance – Long-haul trips may have higher premiums.
✅ Truck Type – A box truck carrying furniture might cost less to insure than a semi-truck hauling electronics.
Pros of Short-Term Cargo Insurance:
✔️ Lower Initial Cost – You only pay for coverage when you need it.
✔️ Flexibility – Great for occasional hauls, one-time contracts, or testing new freight lanes.
✔️ No Long-Term Commitment – Buy coverage on a per-load basis.
Cons of Short-Term Cargo Insurance:
❌ More Expensive if Used Frequently – If you haul often, the costs can add up.
❌ Not Always Available for All Loads – Some high-risk cargo types may not be covered by short-term policies.
❌ Extra Paperwork – You’ll need to buy a policy before each haul.
➡️ Need coverage for your next load? Get a short-term cargo insurance quote today at CargoPolicy.com!
Which One Is Right for You?
If you’re hauling freight on a regular basis, permanent cargo insurance is likely the better choice. It provides continuous coverage, saves money in the long run, and ensures compliance with shippers and brokers.
If you only haul cargo occasionally or need coverage for a one-time job, short-term cargo insurance is the way to go. It gives you flexibility without the commitment of a permanent policy.
📢 At CargoPolicy.com, we offer both options—so you can choose what works best for your business!
Why Choose CargoPolicy.com?
CargoPolicy.com is owned by National Independent Truckers Insurance Company (NITIC), a trusted provider of commercial truck insurance since 2001.
🚛 We specialize in trucking insurance – It’s all we do!
🚛 Licensed in 48 states – We can provide coverage almost anywhere.
🚛 Risk Retention Group benefits – Lower premiums and stable coverage.
🚛 Flexible policy options – Whether you need permanent or short-term coverage, we’ve got you covered.
🔍 Still have questions? Our team of trucking insurance specialists is here to help! Contact us today.
Final Thoughts
As a trucker, choosing the right cargo insurance is one of the most important decisions you’ll make. Whether you need ongoing protection or temporary coverage for a single load, knowing your options can help you stay compliant, protect your cargo, and keep your business running smoothly.