Commercial Truck Insurance Requirements

Key Takeaways

• Commercial truck insurance is mandatory for legal compliance and protects against liabilities, damages, and financial losses.
• FMCSA sets minimum liability coverage based on cargo type, and states may enforce additional insurance requirements.
• Insurance costs depend on driving records, cargo type, coverage limits, operating radius, and vehicle condition.
• Selecting the right insurance requires evaluating business risks, comparing providers, and ensuring FMCSA compliance.

What Is Commercial Truck Insurance?

Commercial truck insurance is a legal and financial necessity for trucking businesses. It protects against liabilities, damages, and financial losses caused by accidents, theft, and cargo damage. Understanding insurance requirements ensures compliance with federal and state laws while safeguarding assets.

This guide covers minimum insurance requirements, coverage types, cost factors, and legal regulations for commercial truck insurance.

Understanding Commercial Truck Insurance Requirements

Commercial truck insurance requirements vary based on truck type, cargo, and operational area. The Federal Motor Carrier Safety Administration (FMCSA) sets minimum liability coverage for interstate carriers.

Minimum FMCSA Insurance Requirements

The FMCSA mandates minimum liability coverage for interstate trucking, depending on cargo type:

• $750,000: For general freight.
• $1,000,000: For oil transportation.
• $5,000,000: For hazardous materials.
• $300,000: For non-hazardous freight under 10,001 lbs.

State-Specific Insurance Regulations

Each state enforces additional commercial truck insurance requirements beyond federal mandates. Some states require higher liability limits or specific endorsements like Uninsured Motorist Coverage (UMC) and Workers’ Compensation Insurance. Trucking companies must check with state regulatory agencies for compliance.

Essential Types of Commercial Truck Insurance Coverage

Trucking businesses need multiple insurance policies to cover various risks. These policies protect drivers, vehicles, cargo, and third parties in case of accidents, theft, or other damages.

Primary Liability Insurance

• Required by FMCSA.
• Covers bodily injury and property damage caused by the truck driver.
• Does not cover truck damage or driver injuries.

General Liability Insurance

• Covers legal expenses, property damage, and medical costs due to non-trucking activities.
• Protects businesses from lawsuits related to customer injuries at terminals or warehouses.

Physical Damage Insurance

• Covers truck repair and replacement costs from accidents, fire, theft, or vandalism.
• Includes collision and comprehensive coverage.

Bobtail Insurance (Non-Trucking Liability)

• Covers liability when the truck is driven without a trailer and not under dispatch.
• Provides coverage during personal or off-duty driving.

Cargo Insurance

• Protects freight from damage or loss during transit.
• Coverage limits vary based on cargo type and potential risks.
• FMCSA does not require it, but many shippers and brokers demand it.

Workers’ Compensation Insurance

• Covers medical expenses and lost wages for injured truck drivers.
• Required for trucking companies with employees in most states.

Uninsured/Underinsured Motorist Coverage

• Protects drivers and trucks against damages caused by uninsured motorists.
• Covers medical expenses and property damage.

Trailer Interchange Insurance

• Covers damages to non-owned trailers when hauling under a trailer interchange agreement.
• Includes collision, fire, theft, and vandalism coverage.

Read More: Fleet Vehicle Insurance

Factors Affecting Commercial Truck Insurance Costs 

Driving Record & Experience

Driving record & experience play a crucial role in determining insurance premiums. Truck drivers with a clean driving history receive lower rates, while companies with experienced drivers pay less than those hiring new or high-risk drivers.

Type of Cargo

Type of cargo being transported significantly impacts insurance costs. Hauling hazardous materials and valuable goods leads to higher premiums, whereas carrying standard freight or lightweight cargo results in lower insurance rates.

Coverage Limits

Coverage limits directly affect the cost of insurance policies. Higher limits increase premiums because they provide better financial protection, while choosing higher deductibles helps lower monthly costs by shifting some financial responsibility to the policyholder.

Operating Radius

Operating radius influences insurance pricing based on travel distance and exposure to risks. Local trucking operations typically have lower premiums, whereas long-haul and interstate routes drive up costs due to extended driving hours and higher accident risks.

Vehicle Type & Age

Vehicle type & age impact insurance costs depending on the truck’s value and maintenance needs. Newer trucks cost more to insure due to higher repair expenses, while older trucks may have lower premiums but often require increased maintenance.

Business Structure & Claims History

Business structure & claims history determine how much a trucking company pays for insurance. Companies with a history of frequent claims face higher premiums, while established businesses with a strong safety record benefit from lower rates.

Legal Compliance and FMCSA Regulations

Truck operators must comply with federal and state laws to avoid penalties and business disruptions.

FMCSA Insurance Filings

Insurance providers file specific forms with FMCSA to prove compliance:

• Form MCS-90: Certifies public liability coverage.
• Form BMC-91 or BMC-91X: For bodily injury and property damage liability.
• Form BMC-34: Certifies cargo insurance compliance.
• Form BMC-84: Used for freight broker surety bonds.

Penalties for Non-Compliance

Failure to maintain adequate insurance results in:

• License suspension or revocation by FMCSA.
• Heavy fines and legal penalties.
• Increased financial risks for accidents and lawsuits.

Legal Compliance and FMCSA Regulations

Truck operators must comply with federal and state laws to avoid penalties and business disruptions.

FMCSA Insurance Filings

Insurance providers file specific forms with FMCSA to prove compliance:

• Form MCS-90: Certifies public liability coverage.
• Form BMC-91 or BMC-91X: For bodily injury and property damage liability.
• Form BMC-34: Certifies cargo insurance compliance.
• Form BMC-84: Used for freight broker surety bonds.

Penalties for Non-Compliance

Failure to maintain adequate insurance results in:

• License suspension or revocation by FMCSA.
• Heavy fines and legal penalties.
• Increased financial risks for accidents and lawsuits.

How to Choose the Right Commercial Truck Insurance

Finding the right insurance policy requires comparing coverage, costs, and providers. Businesses should focus on comprehensive protection while optimizing expenses.

Assess Business Needs

• Identify fleet size, operational radius, and cargo type.
• Choose coverage limits based on potential risks.

Compare Insurance Providers

• Research insurance companies with trucking expertise.
• Check customer reviews and claim processing efficiency.

Consider Discounts & Cost Reduction Strategies

• Bundle multiple policies for discounted premiums.
• Improve driver training and safety programs to lower risks.
• Invest in vehicle tracking and anti-theft devices.

Work with an Insurance Broker

• Brokers help find the best policy for specific needs.
• They negotiate lower premiums and provide expert advice.

Conclusion

Commercial truck insurance is essential for legal compliance, financial protection, and business stability. Trucking businesses must understand federal and state requirements, select appropriate coverage, and implement cost-saving strategies.

By choosing reliable insurance providers, maintaining a strong safety record, and staying compliant with FMCSA regulations, trucking companies can mitigate risks and operate successfully.