Commercial Truck Insurance Requirements: FMCSA Guide (2025)

Quick Answer: What Insurance Do Commercial Trucks Need?

Commercial trucks operating in interstate commerce must carry federally mandated insurance minimums set by the FMCSA (Federal Motor Carrier Safety Administration). Requirements depend on what you haul and where you operate.

Federal Minimums:

• General freight: $750,000 liability
• Household goods: $750,000 liability
• Hazardous materials: $1,000,000 to $5,000,000 liability
• Oil transport: $1,000,000 liability

These are minimums. Most carriers need higher limits for contracts and broker access.

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FMCSA Insurance Requirements

Required Liability Limits by Cargo Type

Who Must Comply?

Interstate carriers that:

• Operate vehicles over 10,001 lbs GVWR
• Transport passengers for compensation
• Haul hazardous materials requiring placards
• Cross state lines for business purposes

Intrastate carriers: Subject to state requirements, which often mirror or exceed federal minimums.

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Types of Commercial Truck Insurance

1. Primary Liability Insurance (Required)

Covers bodily injury and property damage you cause to others.

Coverage Includes:

• Medical expenses for injured parties
• Property damage to other vehicles/structures
• Legal defense costs
• Court judgments and settlements

Minimum vs. Reality:

• FMCSA minimum: $750,000
• Most shippers/brokers require: $1,000,000
• Recommended for protection: $1,000,000+

2. Cargo Insurance

Required amounts vary:

• General freight: Often $100,000 minimum
• Household goods: $5,000-$10,000 per shipment common
• Broker requirements: Typically $100,000 minimum

Coverage Includes:

• Damage during transit
• Theft of cargo
• Loading/unloading damage (may require endorsement)
• Refrigeration breakdown (reefer endorsement)

3. Physical Damage Insurance

Not federally required, but essential for protecting your equipment.

Coverage Includes:

• Collision: Damage from accidents
• Comprehensive: Theft, fire, weather, vandalism
• Specified perils: Named causes only (cheaper but limited)

4. Bobtail/Non-Trucking Liability

Covers your truck when not under dispatch—driving to get fuel, going home, personal use.

When You Need It:

• Owner-operators leased to carriers
• Using truck for non-business purposes
• Deadheading without a load

5. Trailer Interchange Insurance

Covers trailers you don't own but are pulling under a trailer interchange agreement.

6. Motor Truck General Liability

Covers non-driving business activities:

• Loading dock operations
• Warehouse activities
• Office premises liability

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Owner-Operator Insurance Requirements

Leased to a Motor Carrier

If you're leased on, the carrier's insurance covers you while under dispatch. You may need:

• Bobtail/Non-trucking liability: When not under dispatch
• Physical damage: Carrier's policy doesn't cover your truck
• Occupational accident: Not workers' comp, but similar protection

Operating Under Your Own Authority

Required to get authority (MC number):

• Primary liability: $750,000 minimum (higher for hazmat)
• BMC-91 or BMC-91X filing with FMCSA
• BOC-3 (process agent designation)

Also needed for business:

• Cargo insurance: $100,000 typical
• Physical damage: To protect your investment
• General liability: For non-trucking business operations

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DOT and FMCSA Filing Requirements

BMC-91 and BMC-91X

Insurance filings that prove you meet FMCSA requirements.

• BMC-91: Filed by insurance company directly
• BMC-91X: Filed by insurance company on your behalf as an insurer

When Required:

• Before receiving operating authority
• When changing insurance companies
• After any policy cancellation

What Happens if Coverage Lapses?

1. Insurance company notifies FMCSA (30-day notice before cancellation)
2. Operating authority becomes inactive
3. You cannot legally operate
4. Loads get pulled from load boards
5. Reinstatement requires new BMC filing

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State-Specific Requirements

Intrastate Operations

States set their own minimums for trucks operating only within state borders:

Important: If you ever cross state lines, you need federal-level coverage.

State Filing Requirements

Many states require separate filings (Form E or equivalent) for intrastate authority.

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How Much Does Commercial Truck Insurance Cost?

Average Annual Premiums

Factors Affecting Trucking Insurance Costs

Higher premiums for:

• New authority (less than 2 years)
• Poor CSA scores
• Hazmat hauling
• Long-haul operations
• Owner-operators (vs. fleets)
• History of claims or violations
• Operating in high-risk states (CA, NY, FL)

Lower premiums for:

• 2+ years authority with clean record
• Good CSA scores
• Regional/local operations
• Experienced drivers (3+ years)
• Fleet discounts
• Higher deductibles
• Safety programs and dash cams

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Getting Your Authority: Insurance Steps

Step-by-Step Process

1. Decide your operation type - What will you haul? Interstate or intrastate?

2. Get insurance quotes first - Apply before filing for authority. Insurers need to file BMC-91.

3. Apply for authority - File with FMCSA through Unified Registration System.

4. Pay FMCSA fees - $300 for MC authority.

5. File BOC-3 - Process agent designation (about $30-$50).

6. Insurance company files BMC-91 - This activates your authority.

7. Wait for authority activation - Typically 21+ days after application.

8. Begin operations - Only after authority shows "Active" in FMCSA system.

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Common Exclusions and Gaps

What Commercial Truck Insurance Doesn't Cover

• Intentional damage
• Wear and tear on your equipment
• Mechanical breakdown (need separate MTC coverage)
• Employee dishonesty (need crime coverage)
• Cargo you don't declare to your insurer
• Commodities excluded in your policy (check carefully)

Gap Issues for Owner-Operators

• No physical damage when leased: Carrier policy covers liability, not your truck
• Bobtail gap: Leased operator without bobtail coverage has no liability when off-dispatch
• Downtime: Standard policies don't cover lost income—need rental reimbursement endorsement

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FAQ

What is the minimum insurance for a semi truck?

For interstate freight hauling, $750,000 liability is the federal minimum. Hazmat carriers need $1,000,000-$5,000,000 depending on cargo type.

Do I need cargo insurance?

FMCSA doesn't mandate specific cargo limits, but most brokers and shippers require $100,000 minimum. Household goods movers have specific cargo requirements.

What's the difference between primary liability and bobtail?

Primary liability covers you while under dispatch or hauling freight. Bobtail covers non-business use when you're not under load.

How long does it take to get trucking authority?

About 21-25 days after application, provided insurance filings (BMC-91) are complete. Insurance must be in place before authority activates.

Why is new authority insurance so expensive?

Insurers view new carriers as high risk. About 30% of new trucking companies fail in the first year. Premiums typically decrease after 2 years of clean operation.

Do owner-operators need their own insurance?

If operating under your own authority, yes—full coverage. If leased to a carrier, their policy covers you under dispatch, but you need bobtail and physical damage for your truck.

What happens if my insurance lapses?

FMCSA deactivates your authority. You cannot legally operate, and reinstatement requires new insurance filings.

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Summary

Key Takeaways:

• Federal minimum: $750,000 liability for general freight, higher for hazmat
• Most brokers/shippers require $1,000,000 liability and $100,000 cargo
• Owner-operators need bobtail coverage when not under dispatch
• New authority insurance costs $12,000-$20,000 annually
• BMC-91 filing required before authority activates
• Coverage lapses = immediate authority deactivation
• CSA scores and safety record significantly impact premiums
• Physical damage insurance isn't required but protects your investment

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Important Disclaimer

This guide provides general information about commercial trucking insurance requirements based on publicly available sources. This is not legal advice. Insurance and regulatory requirements can change. Always verify current requirements with the FMCSA, your state's transportation department, and consult with a licensed insurance professional for advice specific to your operation.

Last verified: December 2025 Sources: FMCSA, 49 CFR Part 387, state transportation departments