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Enclosed Cargo Trailer Insurance: Cost & Quotes from $11

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Regardless of what you are hauling, you want to safeguard your enclosed cargo trailer and the goods therein. If you already have auto insurance on the motor vehicle, you might be tempted to believe that it will be sufficient to cover the trailer. In fact, the insurance on the motor vehicle will not cover the enclosed cargo trailer in the event that it is stolen, vandalized, or damaged in an accident. 

Seeing as you are going to need a separate insurance policy in the event of physical damage to the enclosed cargo trailer, consider investing in cargo trailer insurance. Here’s a breakdown of the common types of enclosed cargo trailer insurance. 


Also read:

Cargo Trailer Liability Insurance

Chances are, you are wondering whether it is compulsory to purchase commercial cargo trailer insurance

Most states make it mandatory to at least have a minimum of liability coverage for the cargo trailer. It’s because the pulling vehicle’s commercial auto liability coverage can cover the cargo trailer but not comprehensively.

If you don’t have the minimum liability coverage for your cargo trailer, you risk hefty fines, having your license revoked, or face imprisonment.

So how much is the minimum liability coverage for your cargo trailer? This depends on the state where you’re located. 


Enclosed Trailer Cargo Insurance

Cargo insurance is a legal requirement if you’re using a cargo trailer to transport or haul household goods and materials for people. 

This insurance will kick in if the goods and materials you’re hauling become damaged or lost during the trip due to theft, vehicular accidents, rollover, jettison, or negligence. 

Cargo insurance provides a $5,000 minimum coverage. Majority of insurance companies sell cargo insurance with a $5,000-$25,000 limit. A few allow you to customize and make it possible for cargo insurance to offer $100,000 coverage. 


Comprehensive and Collision Coverage for Enclosed Trailers 

Don’t think twice about getting comprehensive and collision coverage for your cargo trailer. The latter protects your enclosed cargo trailer from incidents such as theft, vandalism, and weather-related damage.

On the other hand, the former protects your cargo trailer against damage caused by crashing into an object, a vehicle, or another cargo trailer.  

Comprehensive and collision coverage that's part of the insurance for enclosed trailer pays for all repairs or replacements to the cargo trailer. 

So how much money can you get from comprehensive and collision insurance on enclosed trailer? This depends on the insurance company you work with. Some insurance companies provide $2,500-5,000, while there are others willing to give much more. 

 

Emergency Expense Coverage for Cargo Trailers

As an industry standard, most of the current box trailer insurance providers will offer emergency expense coverage. You will be provided with a stipend for transportation and lodging if the enclosed cargo trailer is disabled at a specific distance during a trip. Emergency repairs may or may not be included in the policy’s terms. 


Theft Insurance for Cargo Trailers 

Theft insurance covers costs if your cargo trailer is damaged or lost due to theft. This insurance provides $3,000-$5,000 coverage for repair expenses. If ever you didn’t manage to recover your cargo trailer after it got stolen, theft insurance will refund the value of the cargo trailer or provide a new replacement unit. 


Emergency Roadside Assistance for Cargo Trailers

Emergency roadside assistance also kicks in when your cargo trailer sustains defects at a specific distance during the trip. This insurance provides $1,500-$2,500 insurance money you can use to cover the following costs:

  • Towing services

  • Tire delivery and replacement

  • Hauling services 


Cargo Trailer Personal Effects Coverage 

Are work equipment and other personal belongings inside the cargo trailer? If this is the case consider adding personal effects coverage to your cargo trailer insurance. Personal effects coverage will reimburse losses if your items inside the cargo trailer become damaged or lost due to theft, fire, and collisions. 

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Consider Getting These Business Insurance Policies If You’re Using A Cargo Trailer Commercially

The following are other insurance policies you must purchase when using a cargo trailer commercially. 


General Liability Insurance for Cargo Trailer

Your general liability policy can cover costs if your cargo trailer causes property damage or injuries while being stationary. For example, if the cargo trailer is carrying flammable objects and then explodes, general liability insurance can cover the claims of affected parties. 

General liability insurance will cover the medical treatment or funeral of the person who got injured due to your cargo trailer. As for those whose properties got damaged, general liability insurance will refund their loss. 

In case you need money for legal defense, general liability insurance got your back because it will pay for attorney fees, judgments, etc. 

You can add advertising injury coverage to general liability insurance. This will cover costs if a claim is filed for slander, libel, and copyright infringement.

Non-owned/hired auto liability coverage is another optional inclusion to general liability insurance. This can cover attorney fees, settlements, administrative costs, and other related expenses if a cargo trailer you rented or borrowed caused injuries or property damage. 

So how much money can you get from general liability insurance? General liability insurance has a $1 million-$2 million per occurrence limit with a $2 million-$3 million aggregate. 


Product Liability Insurance for Cargo Trailers 

Do you rent or lease your cargo trailer? If this is the case, consider purchasing product liability insurance. Product liability insurance will take care of expenses if the cargo trailer causes injuries or property damage to the renter while it’s being used. 

Product liability insurance is available as a stand-alone policy or as an optional coverage to general liability insurance. This has a $2 million per occurrence limit with a $2 million aggregate. 


Trailer Interchange Insurance for Cargo Trailers

Trailer interchange insurance is useful if you borrow or hire cargo trailers under a trailer interchange agreement. 

In a trailer interchange agreement, any damage or destruction of a hired or borrowed cargo trailer is on your shoulders. The job of trailer interchange insurance is to cover costs on your behalf.

When a hired or borrowed cargo trailer becomes lost or damaged, trailer interchange insurance will cover repair costs or refund the losses of the owner.  This policy provides you with $20,000-$30,000 coverage. 


Commercial Property Insurance for Cargo Trailers 

Commercial property insurance is a coverage for your cargo trailers and other business property such as the storage building where the cargo trailers are kept and the equipment used to maintain them. 

You can use commercial property insurance to recover losses if any of the following perils cause the damage or destruction of your cargo trailers’ storage building:

  • Fire

  • Theft

  • Vandalism

  • Riot

  • Civil commotion

  • Sinkhole collapse

  • Volcanic action

  • Sprinkler leakage

  • Vehicle

  • Aircraft

  • Explosion


Commercial property insurance has business equipment coverage. With business equipment coverage, your cargo trailers as well as the equipment used to maintain them are protected against the exposures we mentioned above. 


Workers Compensation Insurance for Cargo Trailer Operators 

Workers' compensation insurance can cover costs if you or an employee sustains injuries while using a cargo trailer for commercial purposes. Note that this insurance is a legal requirement except in Texas. 

So what costs does workers' compensation insurance cover? This insurance allows you to cover the following:

  • Medical treatment/ambulance-Workers compensation insurance covers medical treatment and ambulance fees if you or an employee sustains injuries while using a cargo trailer to generate money

  • Hospitalization-Insurance companies allow you to use their worker's compensation insurance to cover hospital bills 

  • Medication-Workers compensation insurance provides the funds you or an employee can use to buy medicines for a work-related injury

  • Lost wages-Workers compensation insurance covers lost wages. Coverage for lost wages is a weekly allowance equal to two-thirds or 67% of the average weekly wage 

  • Death benefits-Workers compensation insurance covers funeral expenses and provides financial assistance to a deceased’s dependents


Workers' compensation insurance can only cover you or employees. It doesn’t cover the injuries of third parties who got hurt by your cargo trailer. 


Does Your Cargo Trailer Need an MCS90 Endorsement?

Your cargo trailer can make use of an MCS90 endorsement if the vehicle pulling it doesn’t have one and if the cargo trailer is used to move cargo. 

An MCS90 isn’t an insurance on cargo trailer. This is a document that can be attached to your cargo trailer insurance and proves that you have the minimum liability coverage limits in case the cargo trailer causes injuries or property damage to third parties. 

Also, in case you don’t have the minimum coverage limits, an MCS90 endorsement can compel an insurance company to indemnify affected parties on your behalf. But note that the insurance company can ask you to reimburse what they spent. 

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Enclosed Trailer Insurance Cost

Right out of the gate, it is important to point out that the operation of commercial enclosed trailers is high stake. As such, you must expect enclosed trailer insurance cost to be generally higher than the premiums you would have otherwise paid for utility trailer insurance. 

The cargo trailer insurance cost you incur will be dependent on a couple of factors. But on average, expect to pay $35 per month or $420 per year for a $1 million liability coverage. In addition, here’s a table showing the rates of the best cargo trailer insurance companies:


Cost per MonthCost per YearAverage cost
CoverWallet$25$300Cargo trailer insurance quotes comparison online
CommercialInsurance.Net$28$336Comparing cargo trailer insurance quotes over the phone
NEXT$28$336Best overall; Fastest general liability insurance with equipment breakdown coverage for cargo trailers
Thimble$33$396Covering cargo trailers through equipment insurance
Geico$36$432Additional coverage options
Progressive$40$480Comprehensive cargo trailer insurance
USAA$45$540Number of available discounts
State Farm$50$600Cargo trailer roadside assistance coverage

 

Often, enclosed trailer insurance providers require that you provide pertinent information on your business beforehand. As such, you want to be conversant with how often you use the trailer and its capacity. Further, depending on your business needs, you might require extra protection. For instance, if you require your policy to include a clause on replacement, this will obviously attract a higher cost. 

An additional determinant of the cargo trailer insurance cost is the make and model of your trailer. If your cargo trailer attracts high market value and is more costly to repair or replace, expect higher premiums. 

Note that the more you are willing to pay out of pocket in the event of a claim, the more likely your insurance rates will be favorable. 

Basically, if you increase your deductibles, you will get cheap cargo trailer insurance quotes. We advise you to compare box trailer insurance quote online. Start by clicking the “Get Quotes” button on this page. 

 

How To Get Cheap Enclosed Trailer Insurance?

Fortunately, you have some control over the insurance rates that you will end up being charged. Some of the tips that will ensure you get a competitive quote include:

  • Safely storing the enclosed cargo trailer within a secure facility when it is not in use

  • Determining the how and the when of when you use the cargo trailer. If you don’t use the cargo trailer frequently, you will be able to pay significantly lower premiums

  • Deductibles can change your rates. Consider increasing your deductibles should help reduce your enclosed cargo trailer insurance premiums 

Compare Cargo Trailer Insurance Quotes Online

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Best Cargo Trailer Insurance Companies

An enclosed cargo trailer will often cost between $1,000 and $4,000 for a single-axle trailer and $3,000 and $15,000 for a dual-axle trailer. Regardless of the size of your business and its model, this is quite a significant investment.

As such, you want to do everything you can to protect the enclosed cargo trailer. The first step is working with a comprehensive insurer who's got your best interest at heart.

Here are the best cargo trailer insurance companies in the market today. Read the reviews below to know their pros, cons, and rate for a $1 million liability coverage. 

 

CoverWallet Cargo Trailer Insurance

Pros

  • Unlimited certificates of insurance

  • Compare quotes online

  • Cancel a policy anytime

  • Competitive rates

  • You can add workers compensation coverage to your cargo trailer’s specialized insurance 

Cons

  • Doesn’t sell an insurance program exclusively made for cargo trailers 

CoverWallet will insure your cargo trailer through its commercial truck and trailer insurance program. Your cargo trailer liability policy from this company will have a $1 million-$2 million per occurrence limit. 

Comprehensive and collision coverage are also available. Both provide a $2,500-$5,000 coverage in case your cargo trailer becomes damaged or lost. CoverWallet also sells cargo insurance having a $10,000 minimum coverage. 

With CoverWallet you enjoy online policy management, unlimited certificates of insurance, and 24/7 policy cancellation. You can also use its online quotes comparison tool to find other companies that cover cargo trailers. 

Best for: Cargo trailer insurance quotes comparison online 

Average cost: $25 per month

Our rating: 10/10

 

CommercialInsurance.Net Cargo Trailer Insurance

Pros

  • Compare quotes over the phone

  • Helps you find other carriers if it can’t quote you

  • Responsive customer service

  • Build your tailored cargo trailer insurance from scratch

Cons

  • An agent will first call you before a quote is provided

CommercialInsurance.Net sells covers personal cargo trailers and commercial cargo trailers. 

This company’s liability coverage for cargo trailers has a $2 million per occurrence limit with a $4 million aggregate. Limits are specially catered to the needs of trucking businesses using cargo trailers. 

You can also opt to get workers compensation, commercial property, and theft coverage as part of your cargo trailer insurance.

Note that CommercialInsurance.Net allows you to build your insurance program from scratch. This means that you’re free to choose which applicable policies to include or exclude. 

Call CommercialInsurance.Net now to compare cargo trailer insurance quotes over the phone and purchase a coverage. 

Best for: Comparing cargo trailer insurance quotes over the phone

Average cost: $28 per month

Our rating: 10/10

 

NEXT Cargo Trailer Insurance

Pros

  • Fast liability coverage for cargo trailers

  • Easy-to-reach customer service

  • You can get a certificate of insurance online that can be sent as a photo, email, or text message

  • Get a 10% discount if buy two or more policies for your cargo trailer

  • Excellent reputation 

  • Best overall

Cons

  • Coverage for cargo trailers is underwritten by CommercialInsurance.Net 

NEXT only provides coverage for the cargo trailers of small businesses and independent drivers in the trucking industry. Note that insurance is sold in partnership with CommercialInsurance.Net. Your cargo trailer’s liability coverage from this company provides a $1 million per occurrence limit. Equipment breakdown coverage, workers' compensation, and commercial property insurance are available as add-ons. 

Best for: Best overall; Fastest liability insurance with equipment breakdown coverage for cargo trailers

Average cost: $28 per month

Our rating: 10/10


Thimble Cargo Trailer Insurance

Pros

  • Provides a refund if you cancel your cargo trailer insurance

  • Online claims filing

  • Track the status of your policy online

Cons

  • Only sells equipment coverage and liability coverage for cargo trailers

Thimble sells an equipment coverage for cargo trailers, which is underwritten by CommercialInsurance.Net. The equipment insurance from this company provides $2,500-$5,000 coverage in case your cargo trailer becomes lost or damaged due to theft, breakdown, fire, and other covered perils. 

Also, you can get liability coverage as a stand alone policy for your cargo trailer. Its per occurrence limit is $1 million-$2 million with an aggregate of $2 million. 

Best for: Covering cargo trailers through equipment insurance

Average cost: $33 per month  

Our rating: 9/10

 

Geico Cargo Trailer Insurance 

Pros

  • Filing of claims is simple, only requiring pictures of the incident and damage, a copy of the insurance documents, and policy number 

  • Great discounts for being a Geico auto policyholder 

  • Towing coverage in the event that your cargo trailer breaks down before you get to your destination

  • Hurricane haul-out coverage for customers in hurricane-prone areas 

  • Online quotes are available 

Cons

  • The enclosed cargo trailer insurance does not include a cover for mold and mildew 

  • Service is slow the moment you actually file a claim 

Geico enclosed trailer insurance encompasses a number of coverage options. These include: 

  • Liability coverage caters for bodily injury liability and property damage liability

  • Medical payments coverage and personal injury protection coverage

  • Uninsured and underinsured motorist coverage

  • Physical damage coverage for cargo trailer is available as a collision coverage and comprehensive coverage 

 

Additional coverage that you could negotiate with the Geico broker includes:

  • Emergency road service

  • Rental reimbursement 

  • Mechanical breakdown insurance 

 

Similar to the other providers on this list, Geico requires that customers get in touch to determine the specific rates of your enclosed trailer insurance. 

Best for: Additional coverage options

Average cost: $36 per month 

Our rating: 9/10

 

State Farm Cargo Trailer Insurance

Pros

  • Personalized service from over 19,000 agents located nationwide

  • State Farm is the largest auto insurance provider in the United States

  • Prompt and reliable claim handling

  • You are eligible for 24/7 roadside assistance coverage 

Cons

  • No online quote tools 

  • Only available to enclosed cargo trailers that fit a key set of criteria

  • Limited information on the insurer's website 

Physical damage coverage that you can get with State Farm cargo trailer insurance includes collision and comprehensive policies. For liability coverage, State Farm offers enclosed cargo trailers:

  • Bodily injury liability coverage

  • Property damage liability coverage

 

State Farm offers a variety of coverage options and add-ons meant to help you customize your policy. These include:

  • Personal injury protection 

  • Emergency road service coverage

  • Uninsured motorist coverage

  • Collision coverage

 

Note that some restrictions apply to roadside assistance. 

 

Additional services offered by State Farm are:

  • Online quotes and bill settlement

  • Paperless policy management 

  • Drive safe and save app 

  • A responsive customer portal 

 

You are required to visit the product page on their website and provide your business ZIP code and other pertinent information. Thereafter, a custom quote will be delivered to your email. You will receive a phone call from a representative that will discuss the particulars of your policy. 

Best for: Cargo trailer roadside assistance coverage

Average cost: $50 per month

Our rating: 9/10

 

Progressive Cargo Trailer Insurance   

Pros

  • Discounts are available if your bundle business and auto insurance together with enclosed cargo insurance 

  • Exceptional customer service with customers being allowed to contract the insurer via chat, email, phone, or social media

  • A number of optional enclosed cargo trailer insurance policies are available 

  • Progressive has a strong financial reputation 

  • Reliable quotes with agents contacting you directly 

  • Provides the best reward to businesses whose drivers have good driving habits and clean record 

  • For companies with cargo trailer drivers with high-risk profiles, Progressive helps with getting SR-22 insurance certificates 

Cons

  • Cargo trailer insurance is offered via a third party 

  • You can't directly file the claim through Progressive 

  • Discount options and coverage types are different for different states, which can be a bit confusing for users 

With Progressive, you will be getting $99,000 in coverage for personal property inside the trailer as part of the replacement cost coverage. For the emergency expenses coverage, you will be given between $750 and $2,000 as a stipend. This is offered as part of the basic enclosed trailer insurance cost. 

Some of the cargo trailer insurance discounts you can get from Progressive include:

  • Discounts if you sign all your policy documents online

  • Paperless process discount

  • Discount for continuous maintenance of the insurance

  • Discount for paying premiums six months in advance 

  • Discounts for more than one cargo trailer 

 

Here's a list of all the Progressive cargo trailer insurance policies on offer:

  • Liability coverage

  • Collision coverage

  • Gap insurance

  • Medical Payment 

  • Roadside assistance

 

In hindsight, Progressive offers all the major cargo trailer insurance policies that you would typically expect from a national insurance carrier. A neat feature offered by Progressive is the pet injury coverage and original equipment manufacturer coverage. These two give Progressive the upper hand. Note that the gap insurance feature offered by Progressive offers coverage of up to 25% maximum. This percentage is arrived at as per the actual cash value of the vehicle as calculated by Progressive. 

Overall, there are two major reasons why you must choose Progressive for your enclosed cargo trailer insurance. The first has to be the cheap rates Progressive offers and the variety of discounts offered to customers. Second, it helps with state filings in case you’re using your cargo trailer for commercial purposes. 

Best for: Comprehensive cargo trailer insurance

Average cost: $40 per month 

Our rating: 9/10

 

USAA Cargo Trailer Insurance  

Pros

  • 5% discount on coverage through an alliance with Progressive 

  • Easy to use and user-friendly website 

  • Customers have a large pool of independent insurance agents, all of whom offer support

  • Vehicle storage discounts if you insure the enclosed cargo trailer with the insurer 

  • Multiple vehicle discounts if you insure more than one enclosed cargo trailer with USAA 

  • Annual mileage discounts are offers for a specified number of miles annually 

Cons 

  • USAA is not accredited  by BBB

  • No specific claims response time frame promises were made by USAA 

When you purchase USAA cargo trailer insurance, you get comprehensive and collision coverage in the event that your cargo trailer is involved in an accident; or it is vandalized, stolen, or involved in a fire or weather-related incident. 

Besides, the coverage helps you protect yourself in the event that you are found to be liable for injuries or property damage. Suppose you end up hitting someone without insurance. You are assured that you are covered up to your policy limits for your injuries, lost wages if they can't work, and enclosed cargo trailers. 

Note that USAA provides you with the opportunity to secure discounts on the premiums of your enclosed cargo trailer insurance. They provide discounts for safety, original ownership, and purchase of multiple policies.

For the basic enclosed cargo trailer insurance, you will be charged right under $45 per month , which will be significantly more for the high-end enclosed cargo trailers. 

Best for: Number of available discounts 

Average cost: $45 per month 

Our rating: 8/10

 



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