DOT Insurance Requirements: FMCSA Compliance Guide (2025)

Quick Answer: DOT Insurance Requirements

The Department of Transportation (DOT) requires commercial motor carriers to maintain minimum liability insurance based on vehicle type and cargo:

All commercial carriers operating interstate must file proof with FMCSA before receiving operating authority.

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What Are DOT Insurance Requirements?

The Federal Motor Carrier Safety Administration (FMCSA), part of the U.S. Department of Transportation, sets minimum insurance requirements for:

Who must comply:

• Interstate commercial motor carriers (cross state lines)
• For-hire carriers (hauling goods or passengers for compensation)
• Private carriers operating CMVs in interstate commerce
• Brokers and freight forwarders

Regulated under: 49 CFR Part 387 (Minimum Levels of Financial Responsibility)

What's required:

• Liability insurance meeting federal minimums
• Proof filed with FMCSA (Form BMC-91 or MCS-90)
• Continuous coverage (no lapses allowed)
• FMCSA-approved insurance carrier

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DOT Insurance Requirements by Vehicle Type

General Freight (Non-Hazmat)

Gross Vehicle Weight Rating (GVWR) under 10,001 lbs:

• DOT requirement: None (unless hauling hazmat)
• State requirements: Vary by state
• Recommendation: $1,000,000 liability minimum

GVWR 10,001 lbs or more:

• Minimum required: $750,000 liability
• Applies to: Box trucks, semi-trucks, tractor-trailers
• Coverage: Bodily injury and property damage

Most common: $1,000,000 liability (industry standard exceeds DOT minimum)

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Hazardous Materials (Hazmat)

Cargo requiring placards:

• Minimum required: $5,000,000 liability
• Applies to: Any quantity requiring hazmat placards
• Examples: Gasoline, propane, chemicals, explosives, radioactive materials

Oil and petroleum products:

• Minimum required: $1,000,000 (interstate)
• Note: Lower than other hazmat due to frequency of transport

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Passenger Vehicles

Vehicles designed to transport 8-15 passengers:

• Minimum required: $1,500,000 liability
• Applies to: Vans, shuttles, small buses
• Interstate operation only

Vehicles designed to transport 16+ passengers:

• Minimum required: $5,000,000 liability
• Applies to: Buses, motorcoaches, charter buses
• Note: Includes driver in passenger count

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Required Filings and Documentation

Form BMC-91 or MCS-90 Endorsement

What it is:

• Certificate proving you have FMCSA-compliant insurance
• Filed by your insurance company with FMCSA
• Must be on file before operating authority granted

Two filing options:

Form BMC-91 (Surety Bond):

• Bond filed instead of insurance
• Guarantees payment of liability claims
• Less common than insurance

Form MCS-90 (Endorsement):

• Insurance company files endorsement with FMCSA
• Most common method
• Automatically filed by insurer

Important: You cannot legally operate without active filing on record with FMCSA.

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MC Number and USDOT Number

Before obtaining insurance, you need:

USDOT Number:

• Required for all commercial vehicles 10,001+ lbs operating interstate
• Obtained free from FMCSA
• Used for safety monitoring and inspections

MC Number (Motor Carrier Number):

• Required for for-hire carriers (hauling for others)
• Authority to operate interstate
• Requires insurance filing before activation

Process:

1. Apply for USDOT number (free)
2. Apply for MC number if for-hire ($300 fee)
3. Obtain insurance from FMCSA-approved carrier
4. Insurer files Form MCS-90 with FMCSA
5. Wait required period (for-hire must wait 20-30 days)
6. Authority granted, can begin operating

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Types of Commercial Trucking Insurance

Primary Liability (Required by DOT)

What it covers:

• Bodily injury to others
• Property damage to others
• Legal defense costs
• Settlements and judgments

Limits: $750,000 - $5,000,000 (depending on cargo)

Average cost:

• New authority: $12,000 - $18,000/year for $1M coverage
• Established carrier: $8,000 - $12,000/year

Deductible: Typically $1,000 - $5,000

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Cargo Insurance (Often Required)

What it covers:

• Damage or loss of freight you're hauling
• Customer's goods in your possession
• Loading/unloading damage

DOT requirement: Not federally required Broker/shipper requirement: Almost always required

Typical limits: $100,000 (minimum) to $250,000+

Average cost: $800 - $2,000/year for $100,000 coverage

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Physical Damage (Recommended)

What it covers:

• Your truck and trailer
• Collision damage
• Comprehensive (theft, fire, weather)

DOT requirement: Not required Lender requirement: Required if financed

Coverage types:

• Stated value: Agreed-upon value
• Actual cash value: Current market value

Average cost: 3-5% of truck value annually

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Bobtail/Deadhead Insurance

What it covers:

• Liability when driving without trailer
• Covers gap in coverage between loads
• Required for owner-operators under dispatch

Average cost: $500 - $1,200/year

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Non-Trucking Liability (NTL)

What it covers:

• Personal use of leased truck
• When not under dispatch
• Off-duty use

Who needs it: Owner-operators leased to motor carriers

Average cost: $400 - $800/year

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DOT Requirements for Owner-Operators

Owner-operators have two options:

Option 1: Operate Under Your Own Authority

Requirements:

• Obtain MC and USDOT numbers
• File insurance ($750,000 - $5,000,000)
• Maintain primary liability coverage
• File quarterly IFTA taxes
• Maintain UCR registration

Total insurance cost: $10,000 - $20,000+/year

Best for: Established operators with consistent freight

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Option 2: Lease to Motor Carrier

Requirements:

• Motor carrier provides primary liability
• You need occupational accident insurance
• Physical damage for your truck
• Non-trucking liability or bobtail coverage

Total insurance cost: $3,000 - $8,000/year

Best for: New operators, those wanting less administrative burden

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State vs. Federal DOT Requirements

Intrastate vs. Interstate

Intrastate (within one state):

• Regulated by state DOT, not FMCSA
• May have different insurance requirements
• MC number not required
• USDOT number may be required

Interstate (between states):

• Regulated by FMCSA (federal)
• Must meet federal minimum insurance
• MC number required for for-hire
• USDOT number required

Example: California intrastate carriers need $750,000 liability (same as federal), but requirements vary by state.

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Penalties for Operating Without DOT Insurance

Federal Penalties

Additional Consequences

• Immediate out-of-service order - cannot operate until compliant
• MC authority revocation - must reapply and wait 20-30 days
• CSA safety score impact - affects future insurance rates
• Personal liability - responsible for all damages without insurance
• Criminal charges - possible in serious accidents

If caught operating without insurance:

1. Truck placed out-of-service immediately
2. Cannot move vehicle until insured
3. Fines and penalties assessed
4. MC authority suspended or revoked
5. Must refile insurance and wait activation period

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How Much Does DOT Insurance Cost?

Cost varies significantly based on:

Factors Affecting Price

Carrier factors:

• New authority vs. established (new pays 50-100% more)
• Years in business
• Safety record and CSA scores
• Claims history
• Operating radius (local vs. long-haul)

Cargo factors:

• Type of freight (general vs. hazmat)
• Value of cargo
• Required coverage limits

Driver factors:

• Driving experience
• MVR (motor vehicle record)
• Age of drivers
• Number of drivers

Fleet factors:

• Number of trucks
• Age and condition of trucks
• Truck value

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Average Annual Costs

Hazmat carriers: Add 50-200% to liability costs Passenger carriers: Similar to hazmat rates

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Ways to Reduce DOT Insurance Costs

1. Improve CSA scores - Safer operations = lower rates
2. Hire experienced drivers - 3+ years experience preferred
3. Maintain good MVRs - Clean driving records essential
4. Install safety equipment - Dash cams, ELDs, collision avoidance
5. Limit operating radius - Local/regional cheaper than long-haul
6. Avoid hazmat - If possible, general freight is cheaper
7. Increase deductibles - $5,000 deductible saves 10-15%
8. Pay annually - Avoid monthly financing fees (15-25% markup)
9. Shop around - Get quotes from 5+ insurers
10. Join trucking associations - Some offer group insurance programs

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How to Get DOT Insurance

Step 1: Determine Your Requirements

• Cargo type (hazmat, general freight, passengers)
• GVWR of vehicles
• Interstate vs. intrastate
• Required coverage limits

Step 2: Obtain USDOT and MC Numbers

• Apply at FMCSA website (fmcsa.dot.gov)
• USDOT number: Free
• MC number: $300 (for-hire only)
• BOC-3 filing: $30-50 (process agent designation)

Step 3: Get Insurance Quotes

Contact:

• Commercial truck insurance specialists (Progressive Commercial, CoverWallet)
• Truck insurance brokers (access to multiple carriers)
• Freight associations (OOIDA, ATA members may get group rates)

Get at least 5 quotes - rates vary significantly.

Step 4: Purchase and File

1. Choose insurer and purchase policy
2. Insurer files Form MCS-90 with FMCSA electronically
3. Verify filing appears on FMCSA website (48-72 hours)
4. For for-hire: Wait 20-30 day vetting period
5. Authority activates, can begin operating

Step 5: Maintain Compliance

• Pay premiums on time (no lapses allowed)
• Update when adding/removing trucks
• Renew policies before expiration
• Monitor FMCSA filing status
• Report changes to operations

Critical: If insurance cancels, FMCSA is notified within 35 days and your authority is revoked.

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Frequently Asked Questions

What is the minimum insurance required by DOT?

$750,000 for non-hazmat freight over 10,001 lbs, $5,000,000 for hazmat requiring placards, and $1,500,000-$5,000,000 for passenger vehicles depending on capacity.

Do I need a DOT number to get insurance?

Yes, you need a USDOT number before purchasing DOT-compliant insurance. The insurer needs your USDOT number to file proof with FMCSA.

Can I operate while my insurance is being processed?

No. You must wait until the insurance filing appears in FMCSA's system (48-72 hours) AND complete any required vetting periods (20-30 days for new for-hire authority).

What happens if my DOT insurance lapses?

FMCSA is notified within 35 days. Your operating authority is suspended or revoked. You cannot legally operate until insurance is refiled and reactivated.

Do I need cargo insurance to get MC authority?

No, cargo insurance is not required by FMCSA. However, brokers and shippers almost always require it ($100,000 minimum typical). You'll struggle to find loads without it.

How long does it take to get DOT insurance?

Purchasing the policy: Same day. Insurance filing appearing in FMCSA system: 48-72 hours. New for-hire authority activation: Additional 20-30 days.

Can I get DOT insurance with a bad driving record?

Yes, but expect much higher rates (50-200% more). Some insurers specialize in high-risk trucking. Options include non-standard insurers and state-assigned plans.

What is the MCS-90 endorsement?

The MCS-90 is the endorsement your insurance company files with FMCSA proving you have required coverage. It's automatically filed by the insurer when you purchase a DOT-compliant policy.

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Key Takeaways

• DOT requires $750,000 - $5,000,000 liability depending on cargo and vehicle type
• All interstate carriers must file insurance proof (Form MCS-90) with FMCSA
• New authority pays 50-100% more than established carriers
• Average cost: $8,000 - $18,000/year for primary liability ($1M coverage)
• Operating without insurance results in up to $16,000 fines and authority revocation
• Industry standard is $1,000,000 liability even though DOT minimum is $750,000
• Cargo insurance not federally required but needed for most loads
• Cannot operate until insurance filing shows active in FMCSA system
• Insurance lapses trigger automatic authority suspension within 35 days

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Important Disclaimer

This guide provides general information about DOT insurance requirements based on federal regulations (49 CFR Part 387). This is not legal or insurance advice. Requirements can change, and specific situations may have additional requirements.

Always verify current requirements with the Federal Motor Carrier Safety Administration (FMCSA) and your state DOT. Consult with a licensed commercial insurance professional and transportation attorney for advice specific to your operations.

Last verified: December 2025

Sources: Federal Motor Carrier Safety Administration (FMCSA), 49 CFR Part 387, U.S. Department of Transportation