Box truck insurance is a commercial auto policy that acts as a safety net for business owners. It protects you from accidental damage, medical claims, and liability issues.
8+ years writing for major outlets, including MarketWatch and Business Insider
Master’s in Education
Taylor Mlam-Samuel is a personal finance writer and credentialed educator. When she’s not helping readers better save and spend money, she can be found teaching.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Save up to $1,025† by comparing quotes from the top 120+ insurance companies
Excellent
Secure. Free. Easy-to-use.
Advertiser Disclosure
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Box truck insurance — for trucks with a separate cargo area — can protect your business from bodily injury and property damage claims. Catering, landscape, and wholesale companies often need the coverage. But the policy type is helpful for any business owner or independent contractor with a box truck.
Even though it’s similar to a commercial auto insurance policy, box truck insurance often includes extra coverage like medical payments. Here’s what you should know about finding the best box truck insurance for your business needs, including comparing quotes and auto coverage options.
Quick Facts
The cost of box truck insurance will depend on your location, vehicle type, and driving record.
Box truck insurance can protect you against financial losses by helping your business pay for medical expenses, accidents, and lawsuits.
Major insurers, such as GEICO, Allstate, and Travelers, offer box truck insurance policies.
What is box truck insurance?
Box truck insurance is a type of commercial auto insurance. It protects businesses against financial losses from accidents, medical expenses, and lawsuits. Most states have specific insurance requirements for commercial vehicles, making it a mandatory expense for business owners.[1]
The exact commercial insurance requirements your business will have to meet depend on the type of truck and the property inside it. Although box truck insurance is similar to personal auto insurance, it provides additional protection specifically for businesses.
Because most cargo trucks have a separate box isolated from the driver’s area, most insurers refer to this type of insurance as box truck insurance. But the insurance type can cover various types of trucks, including moving trucks, cargo cutaways, ice box trucks, and tilt-cab trucks.
Who needs box truck insurance?
You need box truck insurance if you use a truck for business purposes. Here’s a list of the most common businesses that use box trucks:
Catering
Landscaping
Bakeries
Movers
Wholesalers
Junk removal
Event organizers
Florists
Box truck insurance provides protection for different types of vehicles, not just box trucks with separate cabs. You likely need box truck insurance if you use the following types of vehicles for your business:[2]
Straight trucks: These vehicles are similar to box trucks, but they have a single frame from the front to the back.
Tilt cabs: Tilt cabs allow trucks to tilt forward, making it easier to access the engine and other areas. Most tilt cabs are construction vehicles.
Refrigerated box trucks: Businesses utilize these trucks to transport items that require temperature control, such as medicine or perishable food.
Cargo cutaways: These trucks enable you to add customized vehicle bodies for specific uses.
Compare Commercial Auto Insurance Quotes
See rates from top auto insurance companies
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
What box truck insurance covers
Box truck insurance typically includes standard vehicle coverage, like collision, comprehensive, and liability insurance. It can also protect the cargo in the truck and provide medical payments for driver or passenger injuries. But the specific coverage will depend on your insurance company and business needs.
Here’s an in-depth look at what coverage box truck insurance typically includes:
Collision coverage
Whether you hit another vehicle or an object, collision insurance can help pay for the repairs.
Comprehensive coverage
Accidents aren’t the only issues that can occur when you own a box truck. Comprehensive insurance protects against other incidents, including theft, vandalism, and severe weather.
Liability coverage
Liability insurance protects you and other employees from liability claims and lawsuits related to the use of the box truck. It includes bodily injury and property damage liability.
Medical payments coverage
Medical payments coverage helps pay for medical expenses for you and your employees if someone has an accident-related injury.
Uninsured/underinsured motorist coverage
Even though states legally require car insurance, some drivers don’t have a policy. UM/UIM insurancecovers your vehicle repairs and medical expenses if another driver causes damage and doesn’t have enough coverage to pay for it.
Optional box truck insurance coverages
You can also choose to add extra insurance protection that extends beyond what a standard box truck insurance policy typically includes. Although not legally required, the following coverages can provide additional financial protection:
Cargo coverage: Some policies don’t protect the items in your truck. You typically need to buy a separate policy, like a business owners policy (BOP), to help cover repayment costs if anything happens to your tools or inventory due to an accident or other event.[3]
Employee-hired coverage: This optional coverage gives you protection when your employees drive another vehicle for work purposes, including rental cars and employee-owned vehicles.
Blanket additional inspired coverage: With this coverage, you don’t need to add employee names to your policy. It provides “blanket” coverage that protects all drivers.
Roadside assistance: Some policies may include roadside assistance, while others require you to add it separately. This coverage provides professional help with flat tires, dead batteries, towing, and other issues that can leave you stranded during your trip.
Rental car reimbursement: Rental car coverage provides a daily allowance for renting a car when your truck receives repairs due to an accident or other covered incident.
What box truck insurance doesn’t cover
Box truck insurance is extensive and offers financial protection for business owners. It’s typically more expensive than personal auto insurance because it provides more coverage. For example, you usually don’t need to purchase a separate policy for the truck for personal use. As long as you add an extra endorsement, box truck insurance covers both personal and business use.
The policies still have limitations, though. You won’t have protection in the following situations:
Losses due to delay: You won’t have protection if you or another driver experiences a delay due to weather conditions, construction, or any other issues.
Intentional damage: Policies never cover damage you inflict on purpose.
Negligence: This policy won’t cover accidents that occur due to negligent entrustment or allowing someone with a spotty driving record to drive your box truck.
Property your vehicle transports: You may need a separate BOP to cover the actual items your business vehicle is transporting.
Personal vehicles: Commercial auto insurance doesn’t cover personal cars that you use for business purposes, unless you have the proper coverage or endorsements for the vehicle.
Box truck insurance cost
The cost of box truck insurance depends on different factors, and pricing can vary by hundreds of dollars. How much you pay for box truck insurance will ultimately depend on your coverage limits, location, type of truck, employee driving records, and history of claims.
Shopping around and comparing quotes is the best way to save money on coverage. Get pricing from at least three companies before making a decision. It’s easy to learn more about average pricing and make sure you’re getting a good deal.
Where to get box truck insurance
The good news is that you have options when shopping for box truck insurance. You can buy coverage from major insurers, specialized brokers, or local agents. Start by asking about commercial auto coverage and explain the type of vehicle you have.
The following insurers are some of the most popular options for box truck insurance:
Allstate: You can get commercial auto insurance from Allstate, which includes rental car reimbursement as a standard feature.
GEICO: GEICO policies include cargo coverage, making it a standout option for drivers who need protection for inventory or tools.
Liberty Mutual: This company’s commercial auto insurance policies include box truck coverage for small businesses.
Nationwide: You can get coverage for business vehicles you own or rent. The company also has insurance options for employee-owned vehicles.
Progressive: Whether you’re a business owner or a for-hire driver, you can get car insurance through Progressive Commercial.
State Farm: You can choose from different coverage options based on whether you own or rent the vehicle and who’s driving it.
The Hartford: This company connects you with a local agent who can help you find the coverage.
Travelers: You can set up a standard commercial auto insurance policy through Travelers and choose from additional coverage options, such as auto lease gap coverage and employee hired auto coverage.
Factors that affect the cost of box truck insurance
The cost of box truck insurance depends on several factors, and pricing varies. Similar to personal auto insurance, the details of your location, vehicle, and driving record affect how much you pay. Insurers also consider additional factors, such as business claim history and the number of drivers, when determining commercial auto insurance rates.
The following factors have the biggest influence on how much you’ll pay for coverage:
Company location: Every state has different commercial coverage requirements, so your location directly affects how much you pay. Your insurance company will also consider your city’s traffic, weather, and other local factors when determining pricing.
Policy coverage limits: Insurance costs more when you have higher coverage limits. The insurer can pay a higher amount when you file a claim, but it comes at a cost.
Type of vehicles: The type of truck and the vehicle’s age affect the cost of insurance. For example, older trucks are often cheaper to insure since they’re worth less.
Employee driving records: Insurers consider the driving records of every person on the policy. Employees with clean driving recordsare typically less expensive to insure.
Business claims history: A history of filing claims causes insurance costs to increase since there’s a higher likelihood that you’ll file another claim in the future.
Compare Commercial Car Insurance Quotes
Check quotes from top insurance companies
Secure. Free. Easy-to-use.
Based on 7,669+ reviews
4.8/5
How to save money on box truck insurance
Box truck insurance is a necessary expense for some businesses. But you can find ways to lower premiums. Here are some of the best ways to reduce the cost of commercial car insurance:
Train your drivers
Insurers charge less for coverage when drivers have a clean driving record. Additional training can help ensure your drivers are less likely to have an at-fault accident or receive a ticket. Some insurers also offer a discount after drivers complete a certified training program.
Increase the deductible
The deductible is the amount you’re responsible for paying when you file a claim. The higher your deductible, the less you’ll pay for coverage. As long as you can afford the higher amount, it can be a helpful way to reduce costs.
Compare rates
Shop around for rates and compare quotes from multiple insurance companies to find the best deal.
Ask about fleet discounts
Companies usually offer discounts for commercial auto insurance when you have more than one car on the same policy. Ask about discounts and other ways to save.
Box truck insurance FAQs
Box truck insurance is a necessary business expense, so it’s essential to find the right option. Here are answers to common questions about box truck insurance.
Yes. You must have auto insurance on a box truck. States set the minimum car insurance requirements for commercial vehicles, which business owners must purchase for box trucks and other business-related vehicles.
Commercial car insurance is usually more expensive than personal auto insurance because it covers additional risks that don’t apply to personal-use vehicles. For example, multiple drivers might use the truck, and the cargo might be costly. Plus, the vehicles are worth more.
In some cases, yes, you can own a box truck without a commercial driver’s license (CDL). Whether you need the permit depends on the weight of the vehicle. Most box trucks weigh less than the minimum weight requirement, so you don’t need the license.[4]
A $1 million box truck policy provides extensive coverage. The exact cost depends on your location, driving record, and the type of vehicle.
Taylor Milam-Samuel is a writer and credentialed educator who is fascinated by how people earn, save, and spend their money. When she's not researching financial terms and conditions, she can be found in the classroom teaching.
Taylor has been a contributor at Insurify since February 2023.
3+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
)
)
){kind=logo}
){kind=small}
){kind=logo}
)
)
){kind=small}
){kind=small}
)
