Launching or growing a trucking company should not stall on confusing coverage terms and filing codes. The essentials are straightforward once you see how they fit together to protect your operation, satisfy DOT rules, and control total cost.
This guide covers the coverages you need, the federal and state filings that keep you road-legal, what actually drives your premium, and the steps that improve pricing without opening gaps.
The Core Coverages Every Motor Carrier Needs
Three pillars carry most of the weight.
Auto liability. Mandatory for for-hire carriers crossing state lines. FMCSA sets minimum limits by commodity and weight class. Most general freight requires at least $750,000, though brokers and shippers commonly require $1,000,000, which is why most carriers buy the higher limit regardless of the federal floor.
Motor truck cargo. Covers the freight you haul against theft, collision, fire, and certain weather losses. Shippers typically require proof of cargo coverage at specified limits. Read the exclusions closely: sublimits, temperature exposure, unattended vehicle warranties, and theft safeguards vary considerably by commodity, and these are where cargo claims get denied.
Physical damage. Comprehensive and collision on your tractors and trailers. Lienholders require it. Owner-operators and fleets typically use agreed value or stated amount to protect the equipment investment, and a deductible strategy meaningfully affects premium.
Supplemental Coverages Most Carriers Need
- General liability — Premises and operations exposures outside auto liability: a slip-and-fall in your yard, or certain loading and unloading scenarios auto liability will not answer for.
- Non-trucking liability and bobtail — For leased owner-operators driving off dispatch, subject to lease terms.
- Trailer interchange — Required when pulling non-owned trailers under a written interchange agreement.
- Hired and non-owned auto — Covers rentals, and employees using personal vehicles for company business.
- Uninsured/underinsured motorist and medical payments — Required or strongly advisable in many states.
For auto haulers, reefer, bulk, and other specialty operations, endorsements such as debris removal, earned freight, refrigeration breakdown, and pollutant cleanup align the policy with actual exposure. Our additional coverages page covers these in more detail.
Current FMCSA Minimum Limits
| Operation | Minimum liability |
|---|---|
| General freight, vehicles over 10,001 lbs | $750,000 |
| Non-hazmat freight, vehicles 10,001 lbs or under | $300,000 |
| Oil transport | $1,000,000 |
| Certain hazardous materials | $5,000,000 |
| What brokers and shippers typically require | $1,000,000 |
The $750,000 floor traces back to the Motor Carrier Act of 1980 and has never been adjusted for inflation. FMCSA has signaled it expects to propose raising its figures; around $2 million has been discussed publicly. Nothing is final: a proposed rule requires a public comment period, and the earliest realistic implementation would be late 2026 or 2027.
If you are structuring limits for a multi-year plan or negotiating long-term contracts, it is worth knowing that change is under discussion. We will keep clients posted as the rulemaking develops.
Filings That Keep You Road-Legal
Your insurer issues regulatory filings on your behalf so authorities and counterparties can verify coverage.
MCS-90. A federal endorsement attached to your auto liability policy guarantees financial responsibility for public liability, including environmental restoration and bodily injury or property damage caused by your commercial motor vehicle. If you are an interstate for-hire carrier with a USDOT number and FMCSA authority, you generally need one.
Worth understanding: the MCS-90 is a surety mechanism that protects the public, not additional coverage for you. If it pays a claim your policy would have excluded, your insurer can seek reimbursement from you.
BMC-91 or BMC-91X. Filed with FMCSA by your insurer to document required liability limits. Your authority depends on an active filing — a lapse triggers notices and can revoke operating authority.
Cargo filings (BMC-32). FMCSA no longer requires cargo insurance filings from general freight carriers. Household goods movers are the exception and must carry and file proof of cargo coverage in the amount of $5,000 per vehicle and $10,000 per occurrence. Every other carrier still needs cargo in practice, because brokers and shippers require it by contract.
State filings. Intrastate authority may require Form E for liability or Form H for cargo, depending on the state. These are commercial filings and distinct from the SR-22 used for personal auto insurance. Requirements vary by state and commodity.
Our transportation team coordinates filings directly with carriers, which matters most when you are adding units, changing authority, or expanding into a new state and cannot afford a truck sitting idle.
What Insurance Does a Trucking Company Actually Need?
At minimum: auto liability to FMCSA or state thresholds, motor truck cargo to shipper requirements, and physical damage on financed equipment. Add general liability for premises exposures, then trailer interchange, hired and non-owned auto, and injury protections based on how you operate.
If you are leased on to a motor carrier, confirm in writing who provides primary auto liability and cargo before assuming you are covered. Then fill the gaps — non-trucking liability being the usual one. Our owner-operator team does this gap analysis regularly, and the answer surprises people more often than it should.
What Drives Your Premium
- Loss history and safety culture. Clean loss runs, documented corrective actions, and consistent maintenance lower risk perception.
- Driver quality. Experience, stable work history, clean MVRs, and verified CDL tenure improve pricing more than almost anything else you control.
- Equipment and operations. Vehicle class, safety features, radius, garaging location, lanes, and freight classes.
- Limits and deductibles. Higher liability limits cost more. Higher physical damage deductibles reduce premiums but move risk onto your balance sheet.
- Compliance and telematics. Favorable CSA scores, ELD data, camera footage, and hard-braking metrics all support the underwriter’s confidence.
Pricing varies widely by state, commodity, and operating profile. A single unit hauling general freight may see a total annual cost in the mid-four figures to low five figures; small fleets tend to be higher based on unit count, loss history, and limit structure. Those are orientation figures only — real pricing requires a full submission and carrier quotes.
Practical Ways to Lower Cost Without Cutting Protection
Tighten driver vetting. Set minimum CDL tenure, limit major violations, and run pre-hire MVR, PSP, and employment checks. Review annually so standards stay active rather than aspirational.
Use safety technology, and coach with it. Forward-facing cameras, telematics for speeding and hard braking, and automatic emergency braking on newer units improve outcomes and support underwriting. The carriers who see results pair devices with driver coaching. Alerts nobody acts on, change nothing.
Maintain equipment and document it. PM schedules, DVIR closeout, tire and brake documentation, and prompt defect correction reduce roadside violations and losses.
Calibrate deductibles and stated values. Larger fleets with strong cash flow can often take higher physical damage deductibles. Check that stated amounts reflect current market values — carriers routinely overpay on inflated values.
Manage lanes and cargo. Avoid chronic loss locations and high-theft corridors, and apply cargo security protocols on targeted commodities.
Formalize post-accident procedures. Rapid reporting, drug and alcohol testing compliance, preserved dashcam video, and thorough photo capture reduce both claim severity and friction.
Our risk consulting team works with carriers on exactly this. It includes Danny McPeters, a veteran transportation safety leader and former Georgia Division Administrator for the FMCSA — so the person helping you prepare for an audit has run them from the other side.
Quick FAQ
What insurance does a trucking company need? Auto liability to FMCSA or state minimums, motor truck cargo, and physical damage, plus general liability and endorsements matched to your operation.
What is the DOT minimum? $750,000 for most general freight carriers over 10,001 lbs; $300,000 for non-hazmat vehicles at or under 10,001 lbs; $1,000,000 for oil; up to $5,000,000 for certain hazardous materials. Brokers commonly require $1,000,000 regardless.
Do I need an MCS-90? If you operate as an interstate for-hire carrier with FMCSA authority, generally yes. Intrastate and private carriers should confirm applicability with their agent.
Is cargo insurance required by FMCSA? Only for household goods movers, who must carry and file $5,000 per vehicle and $10,000 per occurrence. Everyone else needs it because brokers and shippers require it contractually.
What does commercial truck insurance cost? It varies widely by state, freight, unit count, loss history, and limits. Many owner-operators and small fleets land in the mid-four-figure to low-five-figure range per unit annually, but a quote requires a full submission.
How do I lower my premium? Raise driver standards, deploy cameras and telematics with coaching, maintain and document equipment, calibrate deductibles, and manage lanes and cargo security.
Is the $750,000 minimum going to change? Possibly. FMCSA has indicated it expects to propose an increase. Nothing has been finalized, and any change would follow a public comment period.
How We Support Owner-Operators and Small Fleets
Palomar has served transportation clients since 1954. We are headquartered in Montgomery, Alabama, with offices in Georgia and Mississippi as well.
Our transportation team coordinates filings, negotiates with multiple carriers, and builds coverage tailored to your commodity, radius, and shipper requirements. What clients tell us matters most is fast answers, accurate certificates, and a claims process that does not leave them in a queue when a truck is down.
Whether you need a full trucking package, an owner-operator review if you are leased on, or brokerage coverage, we can identify your gaps.
Call (800) 489-0105 or contact the transportation team to start a quote or a coverage review.
