Trucking Insurance Requirements Explained: What FMCSA Requires and What Customers Expect
This is general information, not legal, tax, financial, medical or security advice. Rules and prices change, so confirm details with the official sources linked below or a qualified professional.
FMCSA requires for-hire trucking companies hauling general freight across state lines in vehicles of 10,001 pounds or more to carry at least $750,000 in public liability insurance, filed with FMCSA by the insurer before authority is granted. Hazardous materials carriers need $1 million or $5 million depending on the cargo. Cargo insurance is only federally required for household goods carriers, but nearly every broker and shipper will require it anyway.
The federal minimums protect the public. They do not protect your truck, your cargo or your business, and they are rarely what your customers will accept.
This is general information, not legal or insurance advice. Coverage terms vary by insurer and state; review your policy with a licensed agent.
Key takeaways
- $750,000 is the federal floor for most for-hire property carriers in trucks of 10,001 lb or more (as of October 2026).
- Hazmat raises the minimum to $1 million or $5 million depending on the material.
- FMCSA only sees the liability filing. Cargo, physical damage, bobtail and workers' compensation are contract, lender or state requirements.
- Your insurer has 20 days after your application is published to file proof of insurance, or your application heads toward dismissal.
- A lapse is an emergency. Keeping proof of insurance on file is required to avoid revocation of your authority.
Federal minimum liability requirements
FMCSA's financial responsibility rules in 49 CFR Part 387 set these minimums for motor carriers of property:
| Operation | Vehicle | Minimum liability (BIPD) | Filing form |
|---|---|---|---|
| For-hire, non-hazardous property | GVWR under 10,001 lb | $300,000 | BMC-91, BMC-91X or BMC-82 |
| For-hire, non-hazardous property | GVWR 10,001 lb or more | $750,000 | BMC-91, BMC-91X or BMC-82 |
| For-hire, oil and certain hazardous materials | 10,001 lb or more | $1,000,000 | BMC-91, BMC-91X or BMC-82 |
| For-hire and private, explosives, poison gas, radioactive and other listed hazmat | Varies | $5,000,000 | BMC-91, BMC-91X or BMC-82 |
| Household goods carriers | 10,001 lb or more | $750,000 plus $5,000 cargo | Liability form plus BMC-34 or BMC-83 |
| Brokers and freight forwarders | n/a | Surety bond or trust fund of $75,000 | BMC-84 or BMC-85 |
All for-hire and interstate carriers also need the MCS-90 endorsement on their liability policy (or MCS-82 for surety bonds). Under 49 CFR 387.15, these endorsements must use FMCSA's prescribed form, be issued in the carrier's exact legal name, and stay in effect continuously until terminated. That exact-name rule is another reason to use one identical legal name across your LLC, Motus and insurance documents. The endorsement exists to protect the public, not you, so read it alongside your policy and ask your agent how claims outside your normal coverage would be handled.
FMCSA will not grant operating authority until the required minimum is on file, and once granted, you must keep insurance and process agent filings on file to avoid revocation proceedings.
The coverages most carriers actually buy
| Coverage | Federally required? | Who usually requires it | What it covers |
|---|---|---|---|
| Primary auto liability | Yes, for authority | FMCSA | Injury and property damage you cause to others |
| Motor truck cargo | Only household goods | Brokers and shippers | Loss or damage to the freight you haul |
| Physical damage | No | Your lender or lessor | Damage to your own truck and trailer |
| Non-trucking liability / bobtail | No | Carrier you lease onto | Liability when driving without a load or off dispatch, as defined in the policy |
| Trailer interchange | No | Intermodal and trailer pools | Damage to trailers you pull but don't own |
| General liability | No | Shippers, facilities | Non-driving incidents, such as at a dock |
| Workers' compensation / occupational accident | State rules vary | States, carriers | Injuries to drivers and employees |
Many brokers publish their own minimums for liability and cargo, and some shippers require higher liability limits than the federal floor. Ask for the customer's carrier packet before you buy coverage, so your limits match the freight you want.
Insurance when you lease onto a carrier
If you lease onto a carrier, the carrier maintains the federally required public liability coverage for operations under its authority. Federal leasing rules in 49 CFR 376.12 require your lease to state who provides any other coverage, such as bobtail, and the exact amount of any insurance the carrier charges back to you. If you buy insurance through the carrier, you are entitled to a copy of the policy on request and a certificate showing the insurer, limits, cost and deductibles. Compare that cost against buying the same coverage yourself. More on this trade-off in owner-operator vs leasing onto a carrier.
How insurers price a new trucking company
New authorities pay more because they have no loss history. Underwriters typically weigh:
- Driver experience and record, including years of CDL experience, violations and claims
- Freight type, with hazmat, high-value cargo and some reefer loads costing more
- Operating radius and lanes, such as local versus long-haul and certain metro areas
- Equipment age, value and safety technology like cameras and collision mitigation
- Garaging location, since some states and metro areas carry higher claim costs
- Safety program, including written policies, driver qualification files and maintenance records
Insurance cost is one of the largest lines in a new carrier's budget. See how it fits alongside truck payments, fuel and compliance in the trucking company startup costs breakdown.
Step-by-step: getting insured for new authority
- Decide your freight and lanes so quotes are accurate.
- Collect driver information: CDL, years of experience, motor vehicle record.
- Collect equipment details: VINs, year, make, value, and any lienholder.
- Request quotes from agents who write new authorities. Not every agent or insurer does; ask directly.
- Compare like for like: limits, deductibles, cargo exclusions (such as unattended vehicle or reefer breakdown), radius limits and named drivers.
- Bind coverage and confirm the filing. Send your docket number the moment it publishes and confirm the insurer has filed BMC-91 or BMC-91X within the 20-day window.
- Get certificates of insurance set up so you can send them to brokers quickly.
- Calendar your renewal and payment dates; a missed premium can cancel your FMCSA filing.
The FMCSA side of this process is covered in how to get a USDOT number and MC authority.
Changing insurers or adding trucks without breaking your filing
Your FMCSA filing is tied to a specific insurer and policy. When something changes, sequence it carefully:
- Switching insurers. Bind the new policy and have the new insurer file its BMC-91 or BMC-91X before the old policy is cancelled. FMCSA requires proof of insurance to stay on file, and a gap can trigger revocation proceedings.
- Adding a truck or driver. Notify your agent before the truck runs its first load. A scheduled policy may not cover an unlisted unit or driver, and your UCR bracket and IRP fleet may change too.
- Changing freight. Moving into hazmat, high-value electronics or temperature-controlled loads can change both your federal minimum and your cargo exclusions. Get the change confirmed in writing first.
- Changing your legal name or address. Update Motus, your insurer and your BOC-3 filer together, since the endorsement must match your exact legal name.
From experience. Whether it is a clinic system or a trucking back office, I design operations so every renewal has an owner. Put one named person, and one calendar, in charge of every policy date and filing confirmation.
Common coverage gaps that hurt new carriers
- Cargo exclusions you didn't read, such as theft from an unattended truck or refrigeration breakdown
- Scheduled drivers only, where a driver not listed on the policy is not covered
- Radius or territory limits that don't match the lanes you actually run
- Cargo limit too low for the loads you book, leaving you to cover the difference
- No trailer interchange when you pull a customer's or pool's trailer
- Lapsed filing because of a missed payment, which can trigger revocation of authority
Insurance checklist
- [ ] Liability limit meets or exceeds FMCSA minimum for your cargo and vehicle class
- [ ] MCS-90 endorsement is attached
- [ ] Insurer filed BMC-91/91X with FMCSA within 20 days of publication
- [ ] Cargo limit matches the highest-value loads you plan to haul
- [ ] Cargo exclusions reviewed (theft, reefer breakdown, unattended vehicle)
- [ ] Physical damage coverage meets lender or lessor requirements
- [ ] All drivers are listed if the policy is scheduled
- [ ] Bobtail or non-trucking liability in place if leased onto a carrier
- [ ] Certificates of insurance ready to send to brokers
- [ ] Renewal and payment dates are in your compliance calendar
Next steps
- Get your target customers' carrier packets and note their liability and cargo minimums.
- Request at least three quotes from agents who write new-authority policies before you file in Motus.
- Read every exclusion on your cargo policy and ask about anything unclear in writing.
- Build a written safety program now; it helps both your new entrant audit and future premiums.
- For the full startup sequence, read how to start a trucking company in the US, or contact us through our advisory service.
Sources
- FMCSA, Insurance Filing Requirements: https://www.fmcsa.dot.gov/registration/insurance-filing-requirements
- 49 CFR 387.9, Financial responsibility, minimum levels (eCFR): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387/subpart-A/section-387.9
- 49 CFR 387.15, Forms (MCS-90/MCS-82) (eCFR): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-387/subpart-A/section-387.15
- 49 CFR 376.12, Lease requirements (eCFR): https://www.ecfr.gov/current/title-49/subtitle-B/chapter-III/subchapter-B/part-376/subpart-C/section-376.12
- FMCSA, Get Operating Authority (Docket Number): https://www.fmcsa.dot.gov/registration/get-mc-number-authority-operate
- FMCSA, New Entrant Safety Assurance Program: https://www.fmcsa.dot.gov/safety/new-entrant-safety-assurance-program
Frequently asked questions
What is the minimum insurance for a trucking company?
For a for-hire carrier hauling non-hazardous property across state lines in vehicles with a GVWR of 10,001 pounds or more, FMCSA requires at least $750,000 in bodily injury and property damage liability. Vehicles under 10,001 pounds need $300,000. Certain hazardous materials raise the minimum to $1 million or $5 million. These are federal floors, not what most customers expect.
Does FMCSA require cargo insurance?
Not for most general freight carriers. FMCSA's cargo insurance requirement applies to household goods carriers and household goods freight forwarders, at $5,000. In practice, most brokers and shippers require cargo coverage before they tender a load, so new carriers almost always buy it. Ask each customer for its minimum limit.
What is the MCS-90 endorsement?
The MCS-90 is the federally prescribed endorsement attached to a for-hire or interstate motor carrier's liability policy so that it satisfies FMCSA's financial responsibility rules. Under 49 CFR 387.15 it must be issued in the carrier's exact legal name and remain in effect continuously until terminated. Ask your agent to explain how it interacts with your policy's own exclusions.
How long does my insurer have to file proof of insurance with FMCSA?
FMCSA says the insurer must file the required forms within 20 days of your application being published in the FMCSA Register. If it does not, you receive a decision that your application will be dismissed unless you comply within 60 days. Line up your insurance agent before you apply for authority.
Why is insurance so expensive for new trucking companies?
Insurers price risk on history, and a new authority has none. Underwriters look at the driver's experience and record, the type of freight, operating radius, equipment value and garaging location. Premiums are usually highest in the first year and can come down as the company builds a clean safety record and loss history.