Cargo Insurance
How is Cargo Insurance Calculated?
Knowing the factors that influence cargo insurance costs can help you make informed decisions. Here’s a breakdown of how cargo insurance premiums are determined.
Key Factors Affecting Cargo Insurance Calculation
Several factors play a significant role in calculating insurance premiums. Here’s what to consider:
- Value of the cargo—The higher the value of the goods being shipped, the more coverage you will need, resulting in a higher premium.
- Type of cargo—Certain goods are riskier to transport than others. Fragile or perishable items may incur higher insurance costs.
- Transportation mode—The method of transport—truck, ship or rail—can influence the risk level and, consequently, the insurance cost.
Beyond the basic factors, the following are other elements that can affect insurance calculations:
- Claims history—If you or your business has a history of claims, this can lead to higher premiums. Insurers assess past risks when determining rates.
- Policy coverage limits—Choosing higher coverage limits will increase your premium. It’s crucial to balance the level of coverage with your budget.
- Deductibles—Higher deductibles can lower your premium but may increase your out-of-pocket expenses in the event of a claim.
The type of insurance you choose also impacts your premiums. Your agent can help you choose appropriate insurance. Standard options include the following:
- Total loss coverage
- Standard/basic coverage
- All-risk coverage
Contact Us
When shopping for an insurance, compare rates from multiple insurers to ensure the best combination of price and value. Contact SaveGuard Insurance in Hayward, California, for personalized cargo insurance quotes.