Box Truck Insurance Cost and How to Save on Premiums

Box truck insurance is essential, but it can be expensive — especially if you’re carrying high-value cargo.

Danny Smith
Written byDanny Smith
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Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Katie Powers
Edited byKatie Powers
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Katie PowersSenior Editor
  • Licensed auto and home insurance agent

  • 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.

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The average monthly cost for a policy ranges from $250 to $1,200, but commercial box truck insurance costs depend on your coverage level and other factors. It’s crucial for operators to budget accurately when it comes to box truck insurance. 

Here’s what you need to know about box truck insurance, including coverage needs, securing a certificate of insurance, and how to save on a policy.

Quick Facts
  • You need at least $750,000 in liability coverage for your box truck.

  • The average cost range for box truck insurance is $3,000 to $14,000 annually.

  • Truck size, cargo type, and route distance all affect box truck insurance costs.

What is box truck insurance?

Box truck insurance is a specialized insurance policy that covers box trucks from accidents, cargo damage, and theft. Like standard car insurance, it includes liability coverage, collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and medical payments/personal injury protection. But it also includes cargo insurance.

Liability insurance covers bodily injury and property damage to other drivers, vehicles, passengers, and property. Collision and comprehensive insurance pay for damages to the box truck in an accident or from an event such as severe weather, theft, or vandalism. Uninsured/underinsured motorist coverage pays for damages caused by a driver without insurance or with insufficient insurance.

Medical payments and personal injury protection (PIP) are similar types of coverage that typically pay for medical expenses due to injuries caused by an accident.[1] Cargo insurance protects the products you’re hauling in your box truck. If you have a car accident that damages the goods in your box truck, cargo insurance can kick in. You can also choose to add on towing insurance.

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How much does box truck insurance cost each month?

Box truck insurance costs between $250 and $1,200 per month, on average, according to the Used Truck Association. Small operators typically pay between $400 and $600 per month.[2] Newer businesses will generally pay more for coverage. Insurers consider them high risk because newer businesses are less established and insurers don’t have as much information about them.

As time goes on and you prove that your company is reliable and not a risk, your insurance premiums should begin to decrease. Keep in mind that these numbers are only averages, and your exact rates will depend on numerous factors specific to each company.

Variables that affect your box truck insurance cost

Box truck insurance costs can vary widely based on numerous factors. Here are some of the most significant factors that affect costs:

  • Truck size and weight: The larger your truck is, the more it’ll cost to insure. For example, a 26-foot box truck will likely cost more to insure than a 16-foot truck, if all else is equal. The weight of your truck will also have an effect, as heavier trucks can do more damage in a crash.

  • Coverage types and limits: The coverage types you include in your policy will affect the cost. If you add physical damage insurance and workers’ compensation coverage, your rates will increase. The more comprehensive your coverage is, the higher your premium will be. Additionally, the higher your coverage limits are, the higher your premiums will be. Increasing your deductible will lower your premium.

  • Driving and claims history: If your drivers have clean driving records, you’ll likely have lower premiums. But if your drivers have a history of accidents, your premiums will likely increase, as insurers view your drivers as more likely to file insurance claims.

  • Type of cargo: The type of cargo your fleet is hauling has a major effect on your premiums. For example, high-risk goods and hazardous materials come with higher liability and risk, so your premiums will be higher.

  • Value of cargo: The more your goods cost, the more expensive your box truck insurance will be, and vice versa. If an insurer has to cover an expensive amount of goods, they’ll need to raise premiums to account for that increased financial risk.

  • Distance of operation: The longer your route, the higher your premiums will be. More distance increases the chance of accidents.

  • Truck age: New trucks are typically more expensive to replace than old trucks, but they also often have more safety features. Both of these factors will affect your premiums.

How to save on box truck insurance costs

While box truck insurance policies can be expensive, you can find ways to save money on premiums while effectively managing your risks. Here are some ways you can reduce rates:

  • illustration card https://a.storyblok.com/f/162273/150x150/789c6c481b/car-and-driving-96x96-green_007-driver.svg

    Maintain clean driving records

    Hiring drivers with clean driving records can keep your rates low. Clean records indicate to insurers that you have safe, low-risk drivers, which lowers the risk of claims.

  • illustration card https://a.storyblok.com/f/162273/150x150/8055843166/car-service-96x96-orange_040-garage.svg

    Bundle with other business insurance

    Some insurers offer bundling discounts for buying multiple policies. Consider bundling your box truck insurance with other necessary coverages, like workers’ compensation.

  • illustration card https://a.storyblok.com/f/162273/150x150/948ffd15d0/personal-transport-96x96-gold_002-truck.svg

    Minimize mileage and truck size

    Start with smaller trucks, like a 16-foot truck, and keep your trips short. This can help you build reliability over time and reduce your premiums before you increase truck size and route length.

  • illustration card https://a.storyblok.com/f/162273/x/5285c4cd74/uninsured-or-underinsured-motorist-coverage.svg

    Track loss runs

    It can pay to track your claims history and highlight infrequent losses to your insurer. Highlighting your safety record shows that your company is reliable and low risk, which may help you secure lower premiums.

  • illustration card https://a.storyblok.com/f/162273/x/fa11c1fe75/comparison-website.svg

    Compare multiple quotes

    It’s important to compare insurance rates before buying a policy. Every insurance company is different, so comparing insurance quotes is the only way to find the best deal.

What are required coverages for box truck insurance?

Just like with personal auto insurance, federal, state, and local governments all have minimum liability coverage limits and insurance requirements for box truck operators. Even companies that you may want to work for, like Amazon Relay, have their own insurance requirements.

The Federal Motor Carrier Safety Administration requires some large commercial vehicles to maintain higher coverage limits.

For example, depending on the cargo, a freight truck needs between $750,000 and $5 million in public liability insurance. Vehicles carrying nonhazardous freight and weighing less than 10,001 pounds need a lower coverage minimum of $300,000. In some instances, box truck fleets will need an additional $5,000 in cargo insurance per vehicle.[3]

That said, certain organizations and programs have their own requirements for box truck drivers. For example, Amazon Relay requires the following minimum amounts of insurance from drivers carrying loads for Amazon:[4]

  • Commercial general liability: $1 million per occurrence ($2 million in the aggregate)

  • Auto liability: $1 million per occurrence, including $50,000 in trailer replacement coverage

  • Cargo coverage: $100,000

  • Employer liability: $100,000 per occurrence

  • Workers’ compensation: Meet requirements everywhere your company operates

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How quickly can you get a certificate of insurance for a box truck?

If you need a certificate of insurance (COI) for a box truck in a hurry, you can obtain it quickly. Many platforms offer 24-hour turnaround times for both quotes and COIs. But turnaround times vary by insurer, approval delays, and more.

Follow these tips to get a COI quickly:

  • Have all your documents ready. Preparing your documents can help your process run more smoothly. Have your truck’s VIN, driver records, business details, and other relevant information ready for the COI.

  • Ask about digital COI delivery. Ask the insurer if it can send you a digital COI so you don’t need to wait for a physical copy.

  • Emphasize your tight timeline. Tell the insurer that you’re operating on a tight deadline. It can work with you to deliver the COI quickly.

Box truck insurance cost FAQs

The following information can help answer your remaining questions about finding insurance for a box truck.

  • Are box trucks expensive to insure?

    Yes. Box trucks can be expensive to insure — especially compared to insurance costs for personal vehicles. The size, weight, and value of cargo all influence insurance costs. Average costs typically range from $250 to $1,200 per month, depending on factors such as truck size, insurance coverage type, cargo, driving records, and the age of the trucking business.

  • What insurance do you need for a box truck?

    For box truck insurance for trucks weighing more than 10,000 pounds, the Federal Motor Carrier Safety Administration requires $750,000 in liability insurance. You’ll also need to carry $5,000 per vehicle in truck cargo coverage, but the amount depends on your cargo. You’ll also need to comply with your state’s minimum insurance requirements.

  • Do you need a CDL for a 26-foot box truck?

    It depends. If the box truck has a gross vehicle weight rating of less than 26,000 pounds, you don’t need a commercial driver’s license (CDL). If it’s higher than 26,000 pounds, you’ll need a CDL.

  • Will your personal policy cover a commercial truck?

    No. Your personal policy won’t cover a commercial truck. Though the two types of insurance share some similarities, they cover different types of vehicles. Commercial trucks come with significantly higher risks than personal vehicles, so they require special insurance.

Sources

  1. Insurance Information Institute. "What is auto insurance?."
  2. Used Truck Association. "Commercial Box Truck Insurance Cost."
  3. Federal Motor Carrier Safety Administratiion. "Insurance Filing Requirements."
  4. Amazon Relay. "Frequently Asked Questions."
Danny Smith
Danny Smith

Danny is a Brooklyn-based writer with a producer’s license for property and casualty insurance. A former editor at Insurify, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.

Danny has been a contributor at Insurify since March 2022.

Katie Powers
Edited byKatie PowersSenior Editor
Photo of an Insurify author
Katie PowersSenior Editor
  • Licensed auto and home insurance agent

  • 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.

Featured in

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