Risky Business

Navigating Commercial Van Insurance to Haul Expedited Freight

By Shelly Benisch, TRS, CIC & Christina Cummings, TRS
Posted Nov 21st 2024 10:37AM

If you own a Commercial Van and want to understand the nuances of Cargo Van & Sprinter Insurance to haul expedited freight, then this blog is for you.

When using your van for commercial purposes, insurance requirements differ significantly from personal auto insurance.

It's essential to know what kind of coverage is necessary to protect both your vehicle and your business operations.

If you are operating your cargo van or sprinter to make money, you need Commercial auto insurance instead of Personal auto insurance.

Understanding Commercial Auto Coverage for Cargo Vans and Sprinters

Let's stick with the 4 bare basics:

Commercial Auto Liability Insurance - This is mandatory for legal operation and covers bodily injury and property damage caused by your vehicle.
Physical Damage Insurance - Provides protection against damage to your van, covering both comprehensive and collision losses.
Motor Truck Cargo Insurance - Covers the goods you transport for your customers, safeguarding them against potential loss or damage.
General Liability Insurance - While not required by the FMCSA or your state, this insurance protects against risks associated with your business activities. Often, customer contracts will require it.

Typical Insurance Coverage Limits and Requirements for Cargo Vans and Sprinters

Commercial Auto Liability - If you are hauling freight for hire across state lines, FMCSA requires a minimum of $300,000 CSL (CSL = Combined Single Limit)

However, you should know that the Industry leans towards more, usually $1,000,000 CSL.

Physical Damage - You may have the choice of ACV (Actual Cash Value) or Stated Amount for the value of your vehicle.

In a loss, after you pay the deductible you choose on your policy, the insurance company will pay Comprehensive and Collision up to Actual Cash Value.

Motor Truck Cargo - Industry standard is $100,000 for potential damage or loss of the freight you're hauling.

General Liability - Industry standard is $1,000,000.

Cost Factors in Commercial Van Insurance

Premiums can vary significantly based on these key factors:

Insurance Credit Rating - Poor records and debt will adversely impact your premium to a very large degree.
Year and Value of Vehicle - High-valued, newer vehicles incur higher physical damage premiums.
Driver's History and Experience - Clean records and experience help lower your premium.
Operational Radius - Long-haul operations can cost more, but last-mile delivery faces different urban challenges which is equalizing that radius equation.
Nature of Cargo - Transporting high-end or hazardous materials increases the cargo premium. Moreover, MOST insurance companies exclude HazMat Cargo for Cargo Vans & Sprinters.

Working with a professional trucking insurance broker will provide accurate estimates to all these points so there are no surprises later.

She knows how to guide you to the coverage you need without over or underinsuring yourself, with the lowest possible premium each year.

Who Offers the Best Rates for Commercial Van Insurance?

Progressive has been a longstanding leader for both new startup Owner Operators and established small Motor Carriers.
However, GEICO has made huge inroads with lower and more realistic premiums for Expediters.

CIS is an independent agency partnered with both Progressive and GEICO.

CIS is Commercial Insurance Solutions Inc., based out of Ohio since 2002 and specializing in Expediting Insurance in 38 states.

(330) 864-1511

Choosing Between a Cargo Van and a Sprinter to haul Expedited Freight

From an insurance viewpoint, both Cargo Vans and Sprinter vans have very similar cost structures.

Your real choice is consideration of your customer's hauling requirements and how each van's size and capacity align with your operational needs.

Here's more on choosing Cargo Vans vs Sprinter Vans.

You Decide Roadsign

An exciting marketplace is emerging in 2025 for Expediters and all Trucking for Hire.

If you're looking to make a change in your life, this is surely the time to do it.

New lower insurance premiums present a rare and remarkable opportunity for Owner Operators and small Motor Carriers to succeed.

If you want to learn more, check out our CIS Commercial Truck Insurance Blog for Owner Operators.

Check out our CIS 5 Star Google Reviews then give us a call at CIS (330) 864-1511

We love to chat and especially help newbies get started in the exciting niche of Expedited Freight!