Cargo Insurance Cost in Montreal and Quebec in 2026

Running a trucking business in Montreal or anywhere across Quebec means protecting the freight you haul. Cargo insurance is one of your biggest operating costs, but it is also one of the most important. Without proper coverage, one accident or theft could put you out of business.

At Qubit Insurance, we are an AMF-licensed independent insurance broker in Montreal. We help trucking companies, owner-operators, freight haulers, and delivery services find the right transportation insurance coverage at competitive rates.

This guide provides a breakdown of estimated cargo insurance costs for 2026 and how to get the best value for your money.

What is Cargo Insurance?

Cargo insurance, also known as motor truck cargo insurance or freight insurance, protects the goods you transport while they are in your care, custody, and control. If freight is damaged in a collision, stolen from your trailer, or lost during transit, this coverage is designed to help pay for the repair or replacement of the goods, subject to policy limits and deductibles.

Why Trucking Companies Need Cargo Coverage

Quebec law does not require cargo insurance for all commercial carriers, but it is effectively mandatory for hauling freight. Most shippers and freight brokers require proof of cargo insurance before assigning loads.

While many brokers accept a standard $100,000 cargo limit, high-value loads often require $250,000+ in coverage to satisfy shipper contracts. If you plan to haul for Amazon Relay, you must maintain at least $100,000 in coverage with a deductible no higher than $1,000. Without meeting these specific technical requirements, you will be unable to book loads or maintain active status with major freight platforms.

What Cargo Policies Cover

A standard motor truck cargo policy covers physical loss or damage to freight from covered events including collision and overturning, fire and explosion, theft, loading and unloading accidents, and weather-related damage.

You can add endorsements for specific risks like refrigeration breakdown, earned freight charges, debris removal, and pollution liability.

Common Policy Exclusions

Every cargo policy includes exclusions. Common exclusions involve losses caused by improper packaging by the shipper, inherent vice or natural deterioration, driver negligence or delay, mechanical breakdown without reefer coverage, and theft from an unattended vehicle without proper security.

Review policy exclusions with your broker before binding coverage.

How Much Does Cargo Insurance Cost in 2026?

Motor truck cargo insurance rates vary based on what you haul, your coverage limits, your operating radius, and your claims history. Here is what Montreal and Quebec operators typically pay.

1. Standard Dry Freight ($100,000 Limit)

For general commodities like clothing, paper products, lumber, building materials, or dry food, expect to pay between $400 (starting base rate for low-risk rural operations) to $1,800 per year with a $100,000 coverage limit.

Dry freight is considered lower risk. These goods are not temperature-sensitive, not easily damaged, and not prime targets for theft. Carriers with clean records hauling standard freight typically fall on the lower end of this range.

Some industry sources report that a $100,000 limit policy typically costs between $400 and $600 per year for low-risk operations, while higher-risk operations or those in urban areas like Montreal pay toward the upper range.

2. Refrigerated Cargo (Reefer Insurance)

Hauling temperature-controlled freight costs more because it increases the risk of spoilage. Reefer cargo insurance with a $100,000 limit typically costs $1,000 to $2,500 per year.

Two risks drive this higher cost. Refrigeration units can fail mechanically and spoil an entire load. Temperature-sensitive products such as produce, dairy, meat, and pharmaceuticals also require strict handling, and any deviation can result in a total loss claim.

Important: Most insurers in 2026 will not offer reefer breakdown coverage for refrigeration units older than 10 to 12 years, regardless of the truck’s age or condition. If your Thermo King or Carrier unit is aging, you may need to upgrade to maintain full coverage.

Reefer breakdown coverage is an endorsement added to a motor truck cargo policy. It covers cargo spoilage caused by sudden mechanical failure of the refrigeration unit. It does not cover spoilage caused by driver delay, improper pre-cooling, or user error.

3. High-Value Target Goods

Electronics, alcohol, pharmaceuticals, tires, copper products, and luxury items are classified as "target goods" because thieves actively seek them out. Cargo insurance for these commodities typically costs $2,500 to $3,500 or more per year.

Insurers often impose additional requirements for high-value freight, including GPS tracking devices, hard-sided trailers (no curtain-sides), team drivers to prevent unattended stops, and mandatory secure parking.

Some policies include sub-limits for target commodities. For example, a $100,000 cargo policy might only cover $25,000 for electronics unless you purchase additional coverage.

4. Hazardous Materials (HAZMAT)

Tanker trucks hauling fuel, chemicals, fertilizers, or other dangerous goods face the highest cargo insurance rates. HAZMAT operators typically pay $15,000 to $30,000 per year for a complete insurance package that includes liability, cargo, and pollution coverage.

This higher cost reflects extreme liability exposure. A hazardous materials spill can trigger environmental cleanup costs exceeding $1,000,000, along with regulatory fines and third-party claims.

5. Monthly Payment Breakdown

Most established owner-operators pay between $35 and $150 per month specifically for the cargo portion of their policy. Monoline cargo coverage (cargo insurance purchased separately from liability) tends to run $150 to $250 per month.

Your actual monthly cost depends on your commodity type, coverage limits, deductible, and claims history.

Total Commercial Insurance Package Costs

Most Quebec trucking businesses do not purchase cargo insurance alone. They bundle motor truck cargo coverage with commercial auto liability and physical damage into a complete policy. The following sections show what the total package typically costs.

1. Delivery Vans and Cargo Vans

Delivery vans and cargo vans typically cost $1,200 to $3,000 per year to insure. Local couriers operating in Montreal pay toward the higher end of this range because of traffic congestion, higher theft risk, and more frequent minor accidents. A small delivery company based in Quebec City may pay around $1,200 per year, while a Montreal-based courier making multiple daily stops often pays $2,500 to $3,000 per van.

Carrying expensive or fragile cargo, such as electronics or perishables, increases premiums by 10% to 20%.

2. Box Trucks (16-Foot to 26-Foot)

Established businesses with three or more years of operating history typically pay $3,500 to $6,000 per year for box truck insurance. A moving company operating in suburban areas often pays around $3,500 per truck, while a furniture delivery company working in downtown Montreal usually pays $4,500 to $5,500 due to narrow streets, tight turns, and higher accident frequency.

New ventures pay significantly more. First-year box truck operators in major metropolitan areas can face $18,000 to $31,000 in total annual premiums when carrying $1,000,000 in liability coverage and $100,000 in cargo coverage.

For a more detailed breakdown of pricing and underwriting factors, see our guide on box truck insurance costs in Quebec.

3. Regional Semi-Trucks (Quebec and Ontario)

Regional semi-truck operators in Quebec and Ontario typically pay $5,000 to $9,000 per year. A carrier operating within 500 km of Quebec City often pays around $5,500 per truck, while a company running the Montreal-Toronto corridor usually pays $6,500 to $8,000. Cross-border refrigerated units hauling perishables into the United States commonly pay $10,000 to $12,000 per year.

Insurers price these policies based on operating distance, cargo value, driver experience, and safety record.

4. Long-Haul and Cross-Border Operations

National long-haul and cross-border trucking operations typically cost $15,000 to $30,000 or more per year. US liability requirements drive this increase. American shippers usually require at least $1,000,000 USD in liability coverage, and many require $5,000,000 for general freight. The US legal system allows significantly higher lawsuit awards than Canada, which insurers reflect in higher premiums.

Cross-border carriers must also carry the MCS-90 endorsement, which confirms to US authorities that the carrier meets federal financial responsibility requirements.

Quebec's Unique Insurance System

Quebec uses a hybrid public-private insurance model that differs from other Canadian provinces. This system makes it easier to understand where your insurance dollars go.

1. SAAQ Public Coverage

The SAAQ (Société de l'assurance automobile du Québec) provides no-fault bodily injury coverage for all motor vehicle accidents that occur within Quebec. This public coverage is automatic and funded through your licence and registration fees.

If someone is injured in an accident in Quebec, SAAQ pays their medical expenses and compensation regardless of who was at fault. This applies to drivers, passengers, pedestrians, and cyclists.

2. Private Insurance Requirements

Private insurers handle everything SAAQ does not cover, including property damage you cause in Quebec, all bodily injury and property damage outside Quebec, physical damage to your own equipment, and motor truck cargo coverage.

For heavy vehicles with a gross vehicle weight rating (GVWR) of 4,500 kg or more, Quebec law requires at least $1,000,000 in civil liability coverage. Most shippers and freight brokers require $1,000,000 to $2,000,000 in practice. Cross-border operations typically require $5,000,000.

3. The 9% Provincial Insurance Tax

Quebec applies a 9% provincial tax on all insurance premiums. This is a direct cost to your business.

Important: Unlike GST or QST paid on fuel, repairs, or equipment, this insurance tax is not refundable as an Input Tax Credit (ITC). On a $10,000 premium, you pay $900 in provincial tax that comes directly out of your profit margin.

Effective January 1, 2027, the provincial insurance tax will increase from 9% to 9.975% to align with the standard Quebec Sales Tax (QST) rate. This new rate applies to all taxable premiums paid after December 31, 2026. For example, on a $10,000 annual premium, the tax cost will rise to $997.50, compared to the $900 paid in 2026.

Key Factors That Affect Your Rate

Several factors determine your cargo insurance premium. Understanding these helps you see where you have control over costs.

1. Your SAAQ PEVL Record

Your PEVL (Politique d'évaluation des propriétaires et des exploitants de véhicules lourds) record acts as your company’s safety report card. The SAAQ maintains this record for every heavy vehicle owner and operator in Quebec.

The PEVL tracks inspection failures, traffic violations, and accidents across your entire fleet. Insurers review this record before setting your premium.

A clean PEVL record can lower your rates significantly. An “Alert” or “Critical” rating can increase premiums by 20% to 50% or push you into the high-risk market, where annual premiums can exceed $30,000 for a single truck.

2. Cargo Type and Value

What you haul directly affects your rate. General palletized freight costs less to insure than electronics, pharmaceuticals, or alcohol.

High-value cargo means higher potential losses, which means higher premiums. If your average load value exceeds the standard $100,000 limit, you need higher coverage limits, which increases your cost.

Commodities commonly excluded or sub-limited include fresh seafood, meats, pharmaceuticals, tobacco, liquor, and jewellery.

3. Operating Radius and Location

Where you operate significantly impacts your premium.

Montreal has higher cargo theft rates than rural Quebec. Companies based in downtown Montreal pay more than those in Trois-Rivières or Saguenay. Urban operations face more traffic, more accidents, and more theft exposure.

Your operating radius matters too. Local operators pay less than regional haulers. Regional haulers pay less than interprovincial carriers. Cross-border operators hauling into the United States pay the most.

4. Claims History

Your past claims directly impact future rates. Every cargo claim stays on your record for years.

One significant claim can increase your premium by 20% to 50% at renewal. Multiple claims can make you uninsurable in the standard market, forcing you into high-risk pools with dramatically higher rates.

5. Business Experience

New trucking companies pay substantially more than established operators. Without operating history, insurers have no data to evaluate your safety record, so they price in the risk.

New ventures (less than 3 years old) often face premiums 30% to 50% higher than experienced carriers with similar profiles. Some new operators are declined by standard insurers entirely.

After 3 to 5 years of clean operations without major claims, rates typically drop as you build a track record.

6. Deductible Selection

Most insurers offer cargo deductibles ranging from $1,000 to $5,000. Choosing a higher deductible directly lowers your annual premium.

For example, moving from a $1,000 deductible to a $2,500 or $5,000 deductible can reduce your premium significantly. Only choose a higher deductible if you have cash reserves to cover the out-of-pocket cost when filing a claim.

All-Risk vs. Named Perils Coverage

When purchasing cargo insurance, you will choose between two main coverage types.

1. All-Risk Coverage (Broad Form)

All-risk coverage, also known as broad form coverage, protects against physical loss or damage unless the policy specifically excludes it. This option provides the most comprehensive protection.

With all-risk coverage, you do not need to prove that a specific event caused the loss. The insurer must show that an exclusion applies to deny the claim, which simplifies the claims process.

All-risk policies cost more but offer broader protection. This coverage works best for most freight operations, especially those hauling a range of commodities.

2. Named Perils Coverage

Named perils coverage only protects against specific risks listed in the policy, such as fire, explosion, collision, overturning, and theft. If your cargo is damaged by something not on the list, you are not covered.

Named perils policies cost less but leave gaps in protection. They can work for carriers hauling low-risk commodities who want to save on premiums.

The claims process for named perils coverage can be more complex because you must prove the loss was caused by one of the specifically listed events.

Cargo Theft Risk in Montreal

Montreal is a major logistics hub, which makes it a target for organized cargo theft operations. This risk affects your insurance rates and policy terms.

1. High-Risk Commodities

Electronics, consumer goods, alcohol, pharmaceuticals, and copper products are the most targeted items. If you haul these commodities, expect higher premiums and stricter policy requirements.

2. Policy Requirements

Many Montreal-area cargo policies include specific theft provisions. Common requirements include GPS tracking devices, secure parking in lit and fenced yards, hard-sided trailers for high-value freight, and unattended vehicle exclusions.

Your theft coverage may only apply if the truck was locked, keys were removed, and the vehicle was parked in a secured location. If your driver leaves the truck running at a rest stop and it gets stolen, your claim may be denied.

3. Theft Deductibles

Some policies carry higher deductibles specifically for theft claims in the Montreal area. Review this clause carefully before binding coverage.

How to Lower Your Cargo Insurance Costs?

You can take specific steps to reduce your premiums without sacrificing essential coverage.

1. Install GPS Tracking and Dash Cameras

Telematics and safety technology can earn discounts of 10% to 25%. GPS tracking demonstrates your commitment to security and helps recover stolen cargo. Dash cameras document incidents and defend against fraudulent claims.

Many insurers require or incentivize these technologies. The equipment often pays for itself through premium savings within the first year.

2. Increase Your Deductible

Moving from a $1,000 deductible to $2,500 or $5,000 can significantly lower your annual premium. Insurance should cover catastrophic losses, not small incidents you can absorb.

Only increase your deductible if you have sufficient cash reserves.

3. Maintain a Clean PEVL Record

Your PEVL safety record is the single most important factor for Quebec insurers. Keep it clean by following hours of service regulations, maintaining your equipment properly, and passing roadside inspections.

A clean record over 3 to 5 years is your best long-term strategy for lower rates.

4. Secure Your Parking

Where you park affects your premium. Trucks stored in secure facilities with lighting, fencing, and camera surveillance get better rates than trucks parked on the street.

If you operate in Montreal, consider renting secure yard space. The cost may be offset by insurance savings.

5. Bundle Your Policies

Combining cargo insurance with commercial auto liability and physical damage from the same insurer often qualifies for multi-policy discounts. Bundled coverage can cost less than purchasing separate policies.

6. Pay Annually

Some insurers offer 5% to 10% discounts for paying the full annual premium upfront instead of monthly installments. If you have the cash flow, annual payment saves money.

7. Work with an Independent Broker

Captive agents work for a single insurance company and can only offer that company’s products. When rates increase, you have limited options.

Independent brokers like Qubit Insurance work for you, not the insurers. We compare quotes from multiple carriers to secure the right balance of price and protection for your specific operation.

For additional guidance when reviewing your coverage, read our guide on 6 key things to look for in commercial motor insurance for your trucking company.

Get a Cargo Insurance Quote

To provide accurate cargo insurance pricing, we need specific details about your operation. This information allows us to approach the right insurers and avoid delays or inaccurate quotes.

We need the following information:

• Cargo details: types of goods hauled, average load value, highest-value loads, and any high-risk or excluded commodities
• Operating details: operating radius (local, regional, interprovincial, or cross-border), primary routes, and annual kilometres
• Equipment details: year, make, model, and current value of your truck and trailer, plus refrigeration unit age and model for reefers
• Safety record: your SAAQ PEVL record, claims history for the past five years, and driver records for all operators
• Business history: how long you have operated under your current authority and your current insurance limits and premium

If you are ready to discuss your cargo insurance needs and get a quote tailored to your operation, call 514-659-3151 to speak with a Montreal-based trucking insurance specialist.

Frequently Asked Questions

How much does cargo insurance cost in Montreal?

Cargo insurance for Montreal operators generally costs $400 to $1,800 per year for standard dry freight with a $100,000 limit. Refrigerated cargo typically costs $1,000 to $2,500, while high-value goods often cost $2,500 to $3,500 or more. The cargo portion alone usually runs $35 to $150 per month.

Is cargo insurance legally required in Quebec?

Quebec law does not require cargo insurance for all carriers, but most shippers and freight brokers require at least $100,000 in motor truck cargo coverage before assigning loads. Without it, you cannot secure freight contracts.

Does cargo insurance cover theft from an unattended vehicle?

Coverage depends on policy conditions. Most policies require the vehicle to be locked, keys removed, and parked in a secured location. In Montreal, insurers may also require GPS tracking or specific security measures. Theft claims can be denied if these conditions are not met.

What is the difference between all-risk and named perils cargo coverage?

All-risk coverage protects against physical loss or damage unless the policy excludes it. Named perils coverage only applies to events specifically listed in the policy. All-risk costs more but provides broader protection and simpler claims handling.

How does the Quebec insurance tax affect my costs?

Quebec applies a 9% provincial tax on insurance premiums, which is not refundable as an input tax credit. On a $10,000 premium, this adds $900. Starting January 1, 2027, the rate increases to 9.975%, raising that cost to $997.50.