Commercial Truck Insurance Requirements: A Complete Guide
Understanding commercial truck insurance isn't just important for carriers—it's crucial for anyone hiring a trucking company. Federal regulations mandate minimum coverage levels, but knowing what those numbers mean can help you make safer choices when selecting a motor carrier.
Why Insurance Matters in Trucking
Commercial motor vehicles pose significant risks on public roadways due to their size and weight. A fully loaded tractor-trailer can weigh up to 80,000 pounds—roughly 20 times the weight of an average passenger car. When accidents occur, the financial consequences can be devastating.
The Federal Motor Carrier Safety Administration (FMCSA) requires minimum insurance coverage to protect the public and ensure that victims of trucking accidents can receive compensation for their injuries and damages.
FMCSA Minimum Insurance Requirements
Under 49 CFR Part 387, for-hire motor carriers must maintain minimum levels of financial responsibility (insurance). The required coverage depends on the type of cargo transported:
| Type of Carrier Operation | Minimum Required Coverage |
|---|---|
| General freight (non-hazardous) | $750,000 |
| Household goods carriers | $750,000 |
| Oil (hazardous substances) | $1,000,000 |
| Hazardous materials (general) | $5,000,000 |
| Passengers (15 or fewer) | $1,500,000 |
| Passengers (16 or more) | $5,000,000 |
Important Note
These are minimum requirements. Many carriers maintain significantly higher coverage limits, and shippers often require proof of coverage exceeding federal minimums before tendering freight.
Types of Commercial Truck Insurance
1. Primary Liability Insurance (BIPD)
Bodily Injury and Property Damage (BIPD) insurance is the most fundamental coverage required by law. It covers injuries to other people and damage to their property when the insured carrier is at fault in an accident.
2. Cargo Insurance
While not always federally mandated, cargo insurance protects against loss or damage to the freight being transported. Many shippers require carriers to maintain cargo coverage as a condition of doing business. Typical coverage ranges from $100,000 to $250,000 or more, depending on the value of goods transported.
3. Physical Damage Insurance
This covers damage to the carrier's own vehicles, including collision damage and comprehensive coverage for theft, vandalism, fire, and natural disasters. While not federally required, it's essential for protecting a carrier's fleet investment.
4. Non-Trucking Liability
Also called "bobtail insurance," this covers owner-operators when they're driving their truck for non-business purposes (without a trailer or not under dispatch).
How to Verify a Carrier's Insurance
Before hiring a trucking company, you should verify their insurance status. Here's how:
- FMCSA SAFER System: Visit safer.fmcsa.dot.gov and search for the carrier by name or USDOT number. The carrier's active insurance filings will be displayed.
- Request a Certificate of Insurance (COI): Ask the carrier to provide a current COI directly from their insurance company.
- Trucking Record: Use our search tool to access carrier profiles that include insurance status indicators.
Key Verification Points
- - Confirm the policy is currently active (not expired or pending)
- - Verify coverage amounts meet your requirements
- - Check that the carrier's USDOT number matches their documentation
- - Ensure the insurance company is authorized to issue policies in your state
Form MCS-90: The Endorsement That Protects the Public
The MCS-90 endorsement is a critical document attached to liability insurance policies for interstate motor carriers. It guarantees that if a carrier causes an accident and fails to pay (due to policy cancellation, lack of coverage, etc.), the insurance company will still pay injured third parties up to the policy limits.
This endorsement exists specifically to protect the public from uninsured or underinsured carriers operating illegally.
What Happens When Insurance Lapses?
If a motor carrier's insurance coverage lapses, serious consequences follow:
- Operating Authority Revoked: The FMCSA will revoke the carrier's authority to operate
- Out-of-Service Order: Vehicles may be placed out of service during roadside inspections
- Fines and Penalties: Operating without proper insurance can result in significant civil penalties
- Personal Liability: Company owners may become personally liable for accident damages
Tips for Shippers and Consumers
- Always verify insurance before hiring - Don't take a carrier's word for it; check official sources
- Require coverage above minimums - For high-value freight, request carriers with $1M+ in coverage
- Check for active filings - "On file" doesn't mean "active"—look for current policy dates
- Review safety records alongside insurance - High insurance alone doesn't guarantee safe operations
- Get it in writing - Include insurance requirements in your shipping contracts
The Future of Trucking Insurance
The minimum insurance requirements for motor carriers have remained unchanged since 1985. Industry advocates and safety groups have long argued that $750,000 is insufficient given modern medical costs and inflation. Legislation has been proposed to increase minimums to $2 million or more, though no changes have been enacted as of 2026.
Regardless of regulatory changes, responsible carriers often maintain coverage well above minimums to protect their businesses and demonstrate their commitment to safety.
Verify Before You Ship
Insurance verification should be a standard part of your carrier vetting process. Use official resources like the FMCSA SAFER System or Trucking Record to confirm that any carrier you work with maintains adequate coverage.
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Trucking Record Editorial Team
Our team researches FMCSA regulations and insurance requirements to provide accurate, actionable information for shippers and consumers. This article was reviewed by professionals with experience in transportation compliance.