What are the FMCSA insurance requirements for commercial vehicles?
The Federal Motor Carrier Safety Administration (FMCSA) insurance requirements for commercial trucking companies vary according to what's being transported, vehicle size, and business structure.
In general, the FMCSA mandates that companies cover their vehicles, drivers, and goods with commercial auto insurance that has public liability and cargo coverage. Insurance documents must be filed with the FMCSA to prove that federal requirements are being met.
What is the FMCSA?
The FMCSA is a U.S. Department of Transportation agency in charge of regulating and promoting safety for transportation businesses. In addition to setting standards to reduce commercial vehicle-related accidents, injuries, and fatalities, the FMCSA oversees insurance compliance among trucking companies and other motor carriers.
Understanding federal motor carrier insurance requirements
The FMCSA mandates minimum coverage for liability, property, and vehicle insurance for any company that operates commercial vehicles to transport cargo, passengers, or hazardous materials.
FMCSA insurance requirements for liability
Commercial trucking companies need liability insurance to cover injuries and property damage to others.
A commercial auto policy from Progressive Commercial can include liability protection along with other coverages for your trucking company. We can help customize your insurance policy to meet FMCSA requirements.
The amount of liability coverage you'll have to carry is based on your cargo and vehicle size. Smaller vehicles typically have lower insurance requirements:
Trucks under 10,001 pounds
- For nonhazardous cargo, minimum coverage is $300,000.
- For hazardous cargo, minimum coverage is $5,000,000.
Large trucks weighing 10,001 pounds or more
- For nonhazardous cargo, minimum coverage is $750,000.
- For hazardous cargo, minimum coverage is $5,000,000.
- For oil and other substances not classified as hazardous, minimum coverage is $1,000,000.
Be sure to check liability requirements in your state, too. It may set higher minimums than the FMCSA.
Off-duty coverage for owner operators
For-hire truckers who receive liability coverage through a motor carrier's authority may need a secondary policy, also known as non-trucking liability insurance. This coverage is designed for owner operators who are under permanent lease from a motor carrier and need protection when the truck is being used for non-business purposes.
FMCSA minimum insurance requirements for commercial passenger vehicles
Liability coverage requirements for commercial passenger vehicles depend on the number of people you can carry:
- 16 or more passengers: $5,000,000
- Less than 16 passengers: $1,500,000
School buses, taxi services, and commuter vans carrying less than 16 people are exempt from these regulations.
FMCSA cargo insurance requirements
Cargo insurance covers damage to goods being transported. FMCSA minimums for cargo insurance are $5,000 per vehicle and $10,000 per occurrence, but these baselines may not be enough to adequately protect your goods. Learn more about cargo insurance and how coverage and costs are determined.
How to file insurance with the FMCSA
You'll use the FMCSA online portal to apply for operating authority. Progressive Commercial makes the next step easy. Call us and we'll issue your insurance filings, usually within 48 hours.
