As a commercial box truck business owner, getting insurance for your business is a crucial step that protects you from unpredictable events that may threaten business safety and continuity. Box truck insurance is a combination of coverages built into one policy that helps your business if it faces some of the risks involved in running such commercial box truck business, these can be lawsuits, refunds on damaged cargo, damages of auto accidents, injuries and more. However, you must choose a box truck insurance coverage that offers as much protection as your business needs, with a cost that is within your budget. This article will help you with that.
Running a box truck business may be a rewarding venture. Whether you’re involved in deliveries, moving services, or logistics – you are highly likely to be getting enough gains to keep the business going, if you make smart business decisions.
One of these smart business decisions is protecting your box truck business from potential risks and losses. The many risks associated with the business require box truck business owners to get covered to ensure smooth operation even in the face of a business catastrophe – or even a small slip.
Auto accidents, cargo damage, fire and theft are just some of the risks associated with box truck businesses. This is why having box truck insurance is a requirement for all box truck businesses (CDL/non-CDL).
However, with all the different box truck insurance coverage types, the range of costs and different companies, how do you choose which one is best for your needs? This guide will help you explore your options and teach you how to make smarter box truck business insurance decisions.
What is commercial box truck insurance?
Box truck insurance is a specialized form of commercial vehicle insurance designed to protect businesses that use box trucks (also called cube vans or straight trucks) for transporting goods. These vehicles are commonly used by moving companies, delivery services, retailers, and contractors to haul equipment, furniture, or freight. Because box trucks often carry valuable cargo and operate on public roads, they face unique risks, including accidents, theft, and property damage, which standard personal auto insurance policies do not cover.
A comprehensive box truck insurance policy typically includes several key coverages. It will be a combination of a commercial auto policy along with several other important business policies. Liability insurance covers bodily injury and property damage to others if the driver is at fault in an accident. Physical damage coverage protects the truck itself through collision and comprehensive insurance.
Cargo insurance pays for damage to or theft of the goods being transported. Businesses may also need non-trucking liability, bobtail insurance, or workers’ compensation if they have employees who drive the trucks. The exact combination of coverages depends on the type of business, the size and use of the truck, and local regulations.
Box truck insurance is essential for legal and financial protection. In most states, commercial vehicles are required to carry minimum liability limits, and shippers or clients may demand proof of insurance before doing business. Beyond legal compliance, the right insurance policy helps business owners avoid costly disruptions in the event of a crash, cargo loss, or equipment damage. Whether you own one truck or a small fleet, box truck insurance provides peace of mind and safeguards your investment.
Box Truck Insurance Cost
Box truck insurance isn’t cheap. As auto insurance costs continue to rise due to several factors, box truck insurance is feeling the squeeze. You can expect to pay between $250 to $417 a month for a $1 million general liability coverage.
You may need extra coverages to bolster your protection. Here are some estimates of their cost:
- Commercial box truck insurance offering primary liability policy is $416.66 a month or $5,000 a year
- The average box truck insurance cost for a general liability policy is $125 a month or $1,500 a year
- Cargo insurance for box truck costs $145.83 a month or $1,750 a year
- The average cost of box truck insurance having physical damage coverage is usually $2,300 a year or $191.66 a month
- The average insurance cost for box truck non-trucking liability policy is $41.66 a month or $500 a year
- Workers compensation included in box truck business insurance is $3,000 a year or $250 a month
We also looked into the pricing of the best companies offering box truck insurance. The rates are reflected in the table below:
| Monthly Rate | Annual Rate | |
|---|---|---|
| CoverWallet | $215 | $2,580 |
| Progressive | $180 | $2,160 |
| Geico | $210 | $2,520 |
| State Farm | $240 | $2,880 |
Note that your actual box truck insurance rates depend on the provider and several factors such as:
- Size of the truck: It will cost more to insure a 26-foot box truck versus a 16-foot box truck.
- Box Truck Value: Highly valued box trucks cost more to insure because they’re more expensive to replace or repair. Similarly, your commercial insurance for a box truck will be more expensive if your truck is older.
- Number of Box Trucks in Your Fleet: An increase in the number of trucks increases the risk of losses. Therefore, you’ll need to spend more for box truck insurance coverage to protect your investment.
- Business Location: More traffic in urban areas leads to spikes in accidents. So if your business is in cities or towns, the premiums of your insurance on a box truck will most likely shoot up.
- Distance Traveled: The farther the radius traveled, the greater the chance of crashes and breakdowns. So the premiums might increase irrespective of your business location, especially if you’re into interstate transportation.
- Goods Being Hauled: Perishable, fragile, or expensive items increase premium rates. The contract your business has with your client can also determine commercial box truck insurance costs.
- Length of operation: If a company is well-established with a clean loss record, its details and data will convince your insurer to lower the premiums.
26ft Box Truck Insurance Cost
The average 26ft box truck insurance cost is $324 a month, or $3,891 a year.
16ft Box Truck Insurance Cost
The average 16ft box truck insurance cost is $306 a month or $3,672 a year.
Box Truck Insurance for Amazon
Amazon is an e-commerce behemoth that offers a wide variety of employment and business opportunities. Why not grab the opportunity of delivering the company’s goods to customers through its Amazon Relay program?
The program offers everything from freight networks to driver apps to make your work a breeze. But you need to meet the program’s insurance demands (among other requirements). Here are the required policies:
- Commercial General Liability: at least $1 million per occurrence and $2 million in the aggregate
- Auto Liability: at least $1 million per occurrence
- Cargo: at least $100,000
- Workers’ Compensation: coverages in all jurisdictions where you do business
- Employer Liability: at least $100k per occurrence
Before taking out a box truck insurance, tell your insurer that your truck will be for Amazon commercial deliveries. They’ll work with you to ensure the solution is tailored to your needs.
Best Box Truck Insurance Companies
Let’s review the best insurance companies for box trucks. We believe that by doing so, we can help you avoid carriers that are only out for your money. Read to know the best companies’ pros, cons, and monthly pricing for a $1 million general liability coverage.
Coverwallet Box Truck Insurance
CoverWallet can assist in buying insurance for a box truck business from different carriers within minutes. The basic coverage begins at only $215 per month. CoverWallet tops our list as the best carrier because it not only offers standard box truck insurance but also box truck cargo insurance. It even has an intuitive quote comparison tool you can use for free to find the cheapest commercial box truck insurance.
Get box truck insurance coverage starting from $12/mo now.
Pros
- Purchase a cover online quickly
- Helps you get the best insurance for box trucks
- Instant quotes are available online
- Many options for diverse trucks
- Have bad driving or bad credit? There’s insurance for you.
Cons
- The platform isn’t an individual carrier; it’s a broker
- Sometimes, the pricing may take longer
Best For: Comparing insurance quotes for box trucks
Average cost: $215 per month
Insuranks Rating: 10/10
Progressive Box Truck Insurance
Progressive boasts the largest market share in the US business insurance industry. This company offers non-CDL box truck insurance and standard box truck insurance as well as other policies at attractive discounts. Progressive is a great option for commercial vehicles because of its wide range of policies: from cargo van insurance to tractor-trailer insurance and everything in between, like a box truck, is available through it.
Pros
- Available in all 50 US states
- A behemoth in the commercial vehicle insurance industry
- Offers the best insurance for box trucks in terms of discounts
- Provide a wide variety of policies for diverse trucks
- Free federal and state coverage filings
Cons
- Have to work with an agent
- May apply travel radius
- Limited allowable fleet size
Best for: High-risk drivers and people looking for a wide variety of policies
Average cost: $180 per month
Our rating: 8.6/10
Geico Box Truck Insurance
Geico is the second-largest insurer in the US and offers commercial truck insurance for box trucks. Available all over the US, it’s popular among all commercial box truck insurance companies for offering cheap rates.
Pros
- Robust mobile application and site
- Available in all 50 US states
- A plethora of discounts
- Excellent customer satisfaction
- Online self-service
Cons
- Limited local agent’s network
Best for: A wide range of insurance policies
Average cost: $210 per month
Our rating: 8.2/10
State Farm Box Truck Insurance
Two of the past three years have witnessed top customer satisfaction and low client complaints in this carrier. Whether you desire to insure a single box truck or the whole fleet, they lead in providing customer satisfaction. If you’re looking for isuzu npr insurance , note that State Farm can get covered without a doubt.
Pros
- Top-in-class customer satisfaction
- Available nationwide
- Covers a wide range of trucks
- Cargo Insurance for Box Truck
Cons
- Lack of online quotes
- You work with an agent
- Limited details on the internet
Best for: Affordable box truck insurance policies and generous discounts
Average cost: $240 per month
Our rating: 8.2/10
FAQs
Why Do You Need Box Truck Insurance?
You need adequate box truck insurance in case of an unexpected event that may damage your truck, goods, or third-party property. Your insurer takes care of the financial and legal repercussions that may arise from your box truck, thus protecting your business from such risks and ensuring you stay on the road without worrying about unforeseen costs.
Is cargo insurance mandatory?
In general, cargo insurance is not legally required by law for each and every shipment, however, it is highly advised to have it and frequently also required by customers and shippers to protect from damages throughout transit.
How can I lower my box truck insurance costs?
Maintaining a clean driving record and implementing safety protocols can reduce your box truck insurance costs, among other factors.
Final Thoughts
When searching for the best box truck insurance company to cover your business in case of any unexpected risks, it’s important to focus on both quality of service and comprehensive coverage. Look for a provider with a strong reputation for handling claims efficiently and who can offer policies tailored to your needs.
Barter Insurance helps you get box truck insurance quotes from providers that you can trust!
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