Trucking insurance is not only a smart precaution, it is legally required to activate and maintain your operating authority. Understanding the required coverages is essential before you begin hauling freight.
Liability Insurance
Liability insurance is mandatory for motor carriers. The Federal Motor Carrier Safety Administration requires a minimum of 750000 dollars in public liability coverage for most interstate freight carriers. However, most brokers and shippers require 1000000 dollars in coverage before offering loads.
In practice, most carriers carry a 1 million dollar policy. Average costs can be approximately 3300 dollars per year, but rates vary depending on driving record, location, equipment type, and experience.
Ensure your insurance provider files Form MCS-90 to verify coverage with FMCSA.
Cargo Insurance
Cargo insurance protects the freight you transport. While not federally required for general freight, most brokers and shippers require proof of cargo coverage before assigning loads.
A common requirement is 100000 dollars in cargo coverage for cargo vans or box trucks. Estimated annual costs typically range between 3000 and 6000 dollars.
Cargo insurance covers losses such as theft, accident damage, or other freight related incidents.
Physical Damage Coverage
Physical damage coverage protects your own vehicle against collision and comprehensive losses. While not legally required, it is mandatory if your vehicle is financed or leased.
Premiums depend on the vehicle value and deductible selected.
Additional Coverage Options
- General liability for non driving related incidents
- Uninsured or underinsured motorist coverage
- Bobtail or deadhead coverage when operating without a trailer
- Workers compensation if required by your state
How to Get Insured
Work with an insurance broker who specializes in commercial trucking insurance. They can compare policies from multiple carriers and help you find appropriate coverage based on your operations, cargo type, operating region, and experience level.
New operators often face higher premiums during the first year due to limited experience. Maintaining a clean safety record can help reduce costs over time.
After purchasing coverage, ensure your agent files Form BMC-91 or BMC-91X with FMCSA to activate your operating authority.