Insuring Your Cargo Van for Commercial Use Depends On:
- How your Cargo Van will be used
- What your Cargo Van will be hauling
- Where your Cargo Van will operate
- …and Who’s Driving the Van
We’ll walk you through everything you need to know about insuring your Commercial Van.
- Types of coverage required
- Limits of coverage required
- Do you need a DOT number
- What factors affect your premium
- Who has the best priced insurance
If you want to start hauling freight for hire with a Cargo Van or Sprinter, you’ve come to the right place!
Cargo Van & Sprinter Van: Essential Insurance for Hauling Freight for Hire
If you’re using your van for any kind of commercial work, your insurance is going to be different from your regular car insurance.
Artisan contractors, like plumbers and painters, need commercial insurance for their vans, even though the work itself doesn’t happen inside the van. If you’re using your van for any kind of business then commercial auto liability is a state requirement.
That includes your typical under 10K GVW commercial van used to haul freight for hire, like Expediters and Couriers.
Type of Commercial Insurance for Cargo Vans
- Primary Commercial Auto Liability Insurance: This covers bodily injury and property damage to others that’s caused by your vehicle. This is required coverage to legally operate your Cargo Van or Sprinter hauling freight for hire.
- Physical Damage Insurance: This provides coverage for damage to your van for Comprehensive and Collision losses.
- Motor Truck Cargo Insurance: This covers the goods you’re transporting for your customer.
- General Liability Insurance: This protects against risks not directly related to the operation of your vehicle but associated with your business activities. General Liability is not required by FMCSA or your state, but your customer contracts may require it.
Auto Liability Limits for Commercial Vans
Whether you’re an artisan contractor, a last-mile delivery driver, or just hauling goods within your state you’ll first need to follow your state’s DMV requirements.
Expediters hauling freight for hire across state lines will also need to follow FMCSA guidelines.
Most commercial auto policies offer:
- Basic Limits of $300,000
- Industry Standard Limits of $1 million
- Higher Limits for specific contracts or high-risk deliveries
What are DOT or MC Requirements for Vans
Commercial vans are exempt from FMCSA regulations regarding DOT or MC number requirements.
EXCEPT when they’re used to transport for-hire freight across state lines.
FMCSA is the Federal Motor Carrier Safety Administration that oversees the U.S. Department of Transportation interstate highways.
When you ARE hauling freight for hire across state lines, then the FMCSA interstate rules come into play.
Even if your vehicle is under 10,000 GVW, you’ll still need a Motor Carrier Authority to do it legally.
Your Motor Carrier Authority is your MC number.
Here’s your Cheat Sheet:
DOT Number vs MC Number: The DOT number tracks your vehicle and the MC number tracks your operations.
Interstate Operations: All vehicles hauling freight for hire across state lines are required to have a Motor Carrier Authority, MC number.
State Regulations: Some states MAY require a DOT number for under 10K GVW units even for intrastate operations, and ALL states require a DOT number for larger trucks regardless of vehicle use, operations and territory.
Industry Standard on DOTs: 99% of Expediters hauling for themselves register their vehicle with both a DOT number and MC number; there is no upcharge for both. If you’re looking to bid for freight on most load boards, you’ll need a DOT or MC number.
Brokers want to see DOT and MC numbers on Cargo Vans and Sprinters because it helps everyone in the freight chain track loads and avoid fraudsters.
For years, the FMCSA has tried to combine these into one number, but it hasn’t happened yet:)
Getting your own DOT and MC number is easier than you might think.
Head over to our CIS blog, How to Get an MC Number, and see how simple it can be.
We’ll also help you figure out if you’re ready to take the leap and haul for yourself, or if you should try hauling for another Motor Carrier first.
FMCSA Insurance Requirements for Small Trucks
Cargo Van & Sprinters: If you’re hauling freight for hire across state lines with a vehicle under 10K GVW, FMCSA says you need at least $300,000 in Commercial Auto Liability coverage.
Hot Shot Duallys & Trailers: It’s worth noting that because the combined weight of the truck and trailer is over 10,000 GVW, FMCSA requires a minimum insurance limit of $750,000 CSL Commercial Auto Liability.
You can learn more at Difference between Hot Shot Insurance vs Expediter Insurance.
Industry Standard Liability Limit: Regardless of FMCSA minimum insurance requirements, industry standard for all types of expediting, hot shot and trucking has settled in at $1,000,000 CSL Commercial Auto Liability.
Cost of Insuring Cargo Vans for Commercial Use
The cost for Cargo Van and Sprinter Insurance and Hot Shot Insurance varies widely from state to state.
Here’s some of the factors that affect your Commercial Insurance premiums:
- Insurance Credit Rating: Poor payment records and debt negatively impacts your premium.
- Year and Value of your Commercial Van: New high valued vehicles cost more to repair or replace which increases your Physical Damage premium.
- Driver’s History and Experience: Clean records and experienced drivers lead to lower costs.
- Radius of Operation: Expediting long haul Owner Operators pay more for Unlimited Radius, but Last Mile Delivery or Courier premiums are similar due to the exposure of busy city driving.
- Cargo: Hauling refrigerated freight (REEFER), HazMat and other high end freight will increase your Cargo Premium. There are specific EXCLUSIONS to Cargo policies that you need to know. More on What Motor Truck Cargo covers.
You can learn more on how to Save Money on your New Motor Carrier Insurance, but it is ALWAYS worth your while to make a quick phone call for an estimate with your professional Trucking Insurance Broker first.
She’ll be able to give you a very good ballpark before you take the leap into hauling freight for hire with a Cargo Van or Sprinter.
Who has the Cheapest Commercial Van Insurance?
There are only a handful of strong competitors providing reasonable insurance premiums for Cargo Vans and Sprinters hauling freight for hire.
This niche has been overlooked by insurance firms due to the misconception that drivers face unique time constraints compared to other trucking types. This notion is unfounded, and a fresh option has finally emerged.
While Progressive has been dominant for the past ten years nationwide there’s now real competition for this segment.
GEICO Commercial Van Insurance
Big news! GEICO has officially launched into Expediting and Last Mile Delivery operations.
They’ve rolled out their new program nationwide, and it comes with lower premiums for the coverage you need.
We at CIS are super excited to partner with GEICO as an Independent Agent.
This means we can offer our Owner Operators and Motor Carriers a better option for their Cargo Van & Sprinter insurance.
GEICO’s rates for most of our guys have been nothing short of spectacular.
Run a fast free commercial truck insurance quote online to see if Progressive or GEICO is best for you.
Thanks to the competition, Progressive has actually cut some of their rates for trucking insurance across the country.
Give us a call and we’ll do the shopping for you for free!
CIS: (330) 864-1511
We’ll work as your advocate to secure the correct coverage at the lowest price from policy inception through renewal.
Plus, we quickly issue the multiple Certificates of Liability you’ll need, and help you with claims.
Read on for more tips on insuring your cargo van or sprinter for commercial use.
Is a Cargo Van or Sprinter better for Commercial Use
The debate of which is better for hauling freight for hire, a Cargo Van or a Sprinter.
From an insurance standpoint, there is no difference in cost between the two types of commercial vans, it’s the year and value of the unit that drives the core premium.
Consider the size of the van and its capacity to determine what can fit inside.
Newbies can check out Cargo Van vs Sprinter Van debate.
Required Van Modifications for Commercial Use
Regardless of which type of van you purchase, certain modifications might be necessary in order to haul freight.
The modifications you make to your van have a minimal impact on your Physical Damage premium so make sure the coverage is included on your policy.
- Permanently attached equipment: $2,500 – $5,000 are common limits added to a Commercial Van customized to haul freight for hire.
- Examples: Customization including load securing equipment, shelving, custom paint, appliances, electronics, HVAC and Bunk.
- Deductible: The permanently attached equipment becomes part of the Stated Amount of your Commercial Van and subject to only one deductible that you choose for Physical Damage (Comp & Collision).
Always remember to tell your Truck Insurance Broker about any new modifications you make to your van down the road.
Do Multiple Drivers affect the Insurance Premium
If multiple drivers use your van, it can impact your insurance in either direction.
- Driver History: Each driver’s record impacts premiums for better or worse.
- Age: Sometimes an older responsible driver can mitigate the higher cost of a younger driver.
All insurance policy contracts state that failing to disclose a driver constitutes insurance fraud and can result in legal disputes over claims.
It’s not worth the risk.
Special Driver’s License Requirements for a Cargo Van or Sprinter
You don’t need a special driver’s license to operate a commercially insured Cargo Van or Sprinter Van.
A Commercial Driver’s License (CDL) isn’t required to drive a Commercial Van under 10,000 GVW. However, some insurance companies including GEICO and Progressive might offer a discount on your policy if you already have one.
Finding the Best Load Boards
While some Owner Operators haul for specific brokers, motor carriers, or customers, many others use load boards to find freight for their Cargo or Sprinter Vans.
These popular load boards are definitely worth checking out, but keep in mind—they tend to focus more on larger straight trucks and tractor trailers for most of the freight.
The Best Load Board for Cargo Vans and Sprinters
Your best bet is to check out a reliable Load Board specifically for Commercial Vans.
My Virtual Freight is a 10-year-old company offering complete solutions for Cargo Vans and Sprinters.
My Virtual Fleet stands out in 3 unique ways:
- They share the Results of the Bidding Process
- They teach you how to line item bid
- They teach you how to develop Direct Customers
Their services include a top-notch Load Board, DeadHeading Board, Tracking, Notifications, and Compliance Solution. Leveraging GPS, Google Earth, smartphones, and an advanced accounting module, they enhance productivity and boost profits. With a one-stop approach, they cater to under 10,000 GVW Commercial Vans hauling freight for hire. We insure a LOT of guys who love this loadboard.
Final Thoughts
Beyond the commercial insurance answers for your Cargo Van or Sprinter, we hope this guide gave you the encouragement to dive further into the Expediting niche for Owner Operators. Our guys who specialize in it love the lifestyle.
But before you jump in, give us a call!
We’ll get you some quotes, but we’ll also want to chat through your plans. We’re here to help you succeed.
If the insurance quotes come back sky-high, it might not be the right time to start driving professionally.
No worries—things can change as driving records improve and credit gets better.
If the quotes look good, we’ll help point you in the direction that’s right for you.
Want to learn more?
Check out our blogs about hauling freight with a commercial van: CIS Commercial Truck Insurance Blog for Owner Operators.
When you’re ready to chat, we’re here for you.
Call CIS at (330) 864-1511
15 Minutes can Save you BIG $$$ on your Expediting Insurance!
