The short answer: cargo insurance is priced on risk, and the underwriter only knows the risk you show them. Your claims history sets most of the price. Good security can lower it, keep a higher deductible off your policy, or get coverage for freight an insurer would otherwise turn down. None of that happens on its own. You have to bring the evidence to your broker, and well before the renewal quote is due.
What sets the price of cargo insurance?#
Insurers look at what you haul, where you haul it, how much one load is worth, the deductible you pick and, above all, your claims. Sentry's director of underwriting told Transport Topics in 2024 that the company looks at the commodities hauled, the company's experience and the quality of its drivers before it writes a policy.
Theft claims hit hardest. Scott Dickinson, a senior broker with TrueNorth Cos., told Transport Topics that cargo rates had gone up 8% to 12% on average, and that carriers with repeat thefts were seeing 20% to 30% or more. Theft rings often go back to the same carriers, so one theft tends to bring the next.
Tim Horgan of Hub International's transportation practice put it simply in the same article: when your thefts go down, your premiums go down. Every step below is aimed at that.
Do insurers give credit for security?#
Some have said so on the record. Here is what we found, with the year and who said it. Most of it comes from companies that sell monitoring or security, so read it that way.
| Source | What they said | Year |
|---|---|---|
| Cargo Signal (Expeditors), post by global director Randy Gould | Premium savings of 10% to 20% are common for shippers who present their risk controls to insurers. Strong controls can also get underwriters to cover commodities and regions they would otherwise decline. | 2019 |
| Allianz Global Corporate & Specialty, regional underwriting director Frank Buccafusco, in FleetOwner | Said he considers giving credit on both premium and deductible to accounts with strong risk controls. Loss history is the first thing he looks at. | 2010 |
| Chubb, reported by Insurance Business | Offered discounts through several truck and cargo security system makers, mostly to motor truck cargo policyholders: a premium reduction, a deductible waiver or a discount on the equipment. | 2015 |
| Markel Specialty and Overhaul, reported by Food Logistics | Launched TruckShield. Markel said carrier security and compliance data would let it adjust cargo liability pricing and policy terms and help customers lower premiums. | 2021 |
| WTW, strategic cargo theft guide | Underwriters on high risk freight are asking for higher deductibles and theft sublimits. WTW tells clients to ask whether measures like GPS tracking can be traded against those requests. | 2026 |
Vendor and broker statements, not published rate tables. Discounts vary by insurer, policy and loss history.
Look at what the insurers actually ask for. It is not a brand name. It is a control that is in use and on record. Buccafusco starts with loss history, and Chubb's discounts were tied to specific systems. Ask your broker which measures your insurer credits before you buy anything to earn one.
Which policy conditions can sink a theft claim?#
Before you chase a discount, make sure a theft would be paid. Motor truck cargo policies often put conditions on theft from parked equipment.
- Unattended vehicle exclusions. An insurance agent interviewed by Fleet Equipment in 2022 listed theft from an unlocked or unattended vehicle, and from a trailer left at a location more than 72 hours, as common exclusions.
- Forced entry requirements. One Intact Insurance endorsement for motor truck cargo covers theft from an unattended vehicle only when it has a fully enclosed metal body, the doors were securely locked, and there is visible evidence of forced entry.
- Secure yard conditions. The same form excludes other people's freight in a trailer that is not in a fenced, locked yard with recorded video, a guard service 24 hours a day and a log of every vehicle in and out.
- Theft deductibles and sublimits. WTW reports underwriters adding separate, higher deductibles and lower limits that apply only to theft on high risk freight.
Your policy has its own wording. Ask your broker to show you the theft conditions in writing, then check your drop yards and overnight parking against them.
What should you bring to your broker?#
Start well before renewal. The week the quote is due is too late to change how an underwriter sees you.
- Your loss runs, with what you changed after each theft or claim.
- A written security plan for each equipment type: how trailers and containers are locked, where they park, who can release a load and how pickups are verified.
- Proof the controls are used. Lock and unlock records, tracking reports, gate logs. Anyone can write a procedure. Records show it happens on every load.
- Your riskiest lanes and commodities, and what you do differently on them. Gould's post made the same point: show the underwriter you know where your weak links are.
- A direct question. Which of these measures does this insurer credit, and does the credit apply to the premium, the deductible or the theft sublimit? Get the answer in writing.
Where does VaultX fit?#
VaultX is a patent pending internal lock for shipping containers and 53 foot van trailers. It locks the doors from the inside, so there is no outside lock for a thief to cut. To date, no VaultX lock has been defeated or broken into.
The part an underwriter can use is the record. Every lock and unlock is logged in the encrypted VaultX app with the GPS location and the authorized user who did it. That is a chain of custody from origin to delivery you can share with your broker or underwriter, load after load.
It does not stop a thief from hooking up a whole trailer and driving off. A king pin lock is for that. A stolen trailer with VaultX inside still has to be opened wherever the thief takes it, though, and getting through the doors takes time. The longer that takes, the less gets stolen and the better the odds of recovering the load.
Discounts vary by insurer and policy. VaultX does not sell insurance and cannot promise a rate change. Talk to your broker about how your security program shows up in your premium, and talk to us about adding a lock thieves cannot see.
Frequently asked questions#
Does cargo insurance cover theft?
Usually, within the policy's conditions. Many motor truck cargo forms limit theft from unattended or unlocked equipment, so read the theft conditions before you need them.
How much does cargo insurance cost?
It depends on the commodity, the limit per load, the deductible and your claims. A broker quoted by Transport Topics in 2024 put recent average increases at 8% to 12%, and higher for fleets with repeat thefts.
Will a better lock lower my premium?
It can count as one control in your security program. Whether it earns credit is the insurer's decision, so ask your broker which measures your insurer credits and get the answer in writing.
Why do insurers care about lock and unlock records?
Records show the control was used on every load. They also help if you ever need to show the doors were locked when a theft happened.
Can good security help me get coverage at all?
Sometimes. Cargo Signal wrote in 2019 that strong risk controls can lead underwriters to approve commodities and regions they would otherwise turn down.
Sources#
- Cargo Signal (Expeditors), How to "sell" your supply chain to insurance companies and save, archived copyPublished Apr 5, 2019 · original page since removed · last checked
- Transport Topics, Carriers feel insurance premium pinch as cargo theft climbsPublished Oct 22, 2024 · last checked
- FleetOwner, Cargo theft Q&A with Allianz Global Corporate & SpecialtyPublished Jul 8, 2010 · last checked
- Insurance Business, Insurer offers 15% discount on commercial auto safety devicePublished Jun 30, 2015 · last checked
- Food Logistics, Overhaul and Markel launch TruckShieldPublished Jan 19, 2021 · last checked
- WTW, 2026 guide to strategic cargo theftPublished Feb 23, 2026 · last checked
- Fleet Equipment, Counter cargo theft with the right insurancePublished Apr 26, 2022 · last checked
- Intact Insurance, E109 Locked and Securely Parked Vehicle Warranty (motor truck cargo endorsement)Form dated July 2011 · last checked