Does the type of cargo influence truck insurance?

Does the type of cargo influence truck insurance? The saying “Tell me what you carry, and I’ll tell you how much you’ll pay for insurance” seems to be the mantra for the approximately 13.5 million trucks navigating U.S. roads. The Federal Motor Carrier Safety Administration (FMCSA) is the strict regulatory body overseeing the safety of carriers on the streets. It doesn’t authorize the operation of any truck lacking liability insurance or cargo insurance. These coverages depend on the type of cargo the carrier is hauling.
When an owner-operator is about to secure their insurance, one of the crucial questions to address is the type of cargo they will be transporting. The reality is that some types of loads are more delicate or prone to damage or theft. The value of the cargo can also influence the price of the insurance policy.
It’s not the same to insure refrigerated cargo, such as meats, fruits, or dairy products, that could spoil if there’s a breakdown in the refrigerated trailer as it is to insure a truck transporting clothing, gravel, or metal mechanical parts.
The coverage needed for a truck transporting materials classified as hazardous (HazMat) is also different. In principle, these truckers need to have special accreditation, and liability insurance could reach up to 5 million dollars. Understandably, an accident involving a truck carrying hazardous materials can cause significant damage and environmental contamination. The transported materials could include flammable liquids, paints, fuel, varnishes, chemicals, detonators, or toxic gases. It’s important to note that not all insurance companies specialize in the transportation of hazardous materials.
Some young truckers, blinded by entrepreneurial enthusiasm, overlook the impact insurance expenses can have on their business. Our advice is, before investing a single penny in a truck, have a conversation with an insurance specialist at Univista Insurance to address this crucial factor in your future venture jointly. Does the type of cargo influence truck insurance?