Motor Carrier Insurance Requirements
A for-hire carrier of non-hazardous freight in a truck rated 10,001 pounds or more must carry at least $750,000 of liability insurance. Hazmat carriers need $1 million or $5 million, and small fleets under 10,001 pounds need $300,000 (49 CFR 387.9 and 387.303). Your insurer files proof with FMCSA, and you keep a copy at your office. If your coverage ends, FMCSA can suspend your registration.
Facts checked October 16, 2026
Key Points
- The minimum is $750,000 for a for-hire carrier hauling non-hazardous freight in interstate commerce in a vehicle with a gross vehicle weight rating (GVWR) of 10,001 pounds or more (49 CFR 387.9)
- Hazardous materials raise it. Bulk loads, such as bulk explosives and gases, need $5 million. Oil and other listed hazmat need $1 million (49 CFR 387.9)
- A fleet with only vehicles under 10,001 pounds GVWR that hauls non-hazardous freight for hire must have $300,000 on file with FMCSA (49 CFR 387.303)
- The minimum is public liability coverage. It pays others for injury, property damage and environmental cleanup. It does not pay for your own truck or your cargo
- Keep proof at your principal place of business. That is a Form MCS-90 endorsement, a Form MCS-82 surety bond, or an FMCSA self-insurance order (49 CFR 387.7(d))
- A policy must stay in effect until it ends. Either side can cancel by giving 35 days' written notice (49 CFR 387.7(b))
- Federal rules do not set a cargo insurance minimum for general freight carriers. Only household goods carriers have one ($5,000 per vehicle and $10,000 per event)
Federal minimum insurance and bond amounts
| Minimum | Rule | |
|---|---|---|
| For-hire carrier, non-hazardous freight, vehicle rated 10,001 pounds or more, interstate | $750,000 | 49 CFR 387.9 |
| Hazardous substances in bulk tanks or hopper vehicles, bulk explosives (Divisions 1.1 to 1.3), bulk gases and poisons in the listed divisions, or highway route controlled radioactive material, vehicle rated 10,001 pounds or more | $5,000,000 | 49 CFR 387.9 |
| Oil and other listed hazardous materials not covered above, vehicle rated 10,001 pounds or more | $1,000,000 | 49 CFR 387.9 |
| Vehicle under 10,001 pounds hauling bulk explosives, listed poison gases or highway route controlled radioactive material | $5,000,000 | 49 CFR 387.9 |
| For-hire fleet with only vehicles under 10,001 pounds, non-hazardous freight | $300,000 | 49 CFR 387.303 |
| Passenger vehicle with 16 or more seats, including the driver | $5,000,000 | 49 CFR 387.303 |
| Passenger vehicle for 15 or fewer people, including the driver, for pay | $1,500,000 | 49 CFR 387.303 |
| Household goods carrier, cargo, for each vehicle and for each event | $5,000 and $10,000 | 49 CFR 387.303 |
| Property broker, surety bond or trust fund | $75,000 | 49 CFR 387.307 |
How much insurance does a trucking company need by federal law?
It depends on what you haul and the weight rating of your vehicle. A for-hire carrier of non-hazardous freight in interstate commerce needs at least $750,000 for a vehicle rated 10,001 pounds or more (49 CFR 387.9). Hazardous materials raise the minimum to $1 million for oil and most listed hazmat. They raise it to $5 million for bulk loads such as bulk explosives and gases, and for highway route controlled radioactive material. A for-hire fleet with only vehicles under 10,001 pounds needs $300,000 on file with FMCSA (49 CFR 387.303). The weight rating is the GVWR on the vehicle's certification label, not what it weighs loaded. FMCSA will register a carrier only if it files proof of this coverage (49 U.S.C. 13906(a)).
Who has to carry it, and who is outside the rule?
The $750,000 rule in Subpart A applies to for-hire carriers that haul property across state lines. It also applies to carriers of hazardous materials, whether the trip crosses a state line or not (49 CFR 387.3). It does not apply to a vehicle rated under 10,001 pounds, except for loads such as bulk explosives, poison gases and highway route controlled radioactive material. Intrastate trips with non-bulk hazmat are outside it too. A private carrier that hauls its own non-hazardous freight is not covered by this subpart. States set their own rules for trips that stay inside one state, so check with your state and your insurance agent.
What proof do you keep, and who files it with FMCSA?
You must keep proof of coverage at your principal place of business. The proof is a Form MCS-90 endorsement from your insurer, a Form MCS-82 surety bond, or an FMCSA order that lets you self-insure (49 CFR 387.7(d)). The proof is public information and must be shown on reasonable request (49 CFR 387.7(e)). Your insurer also files a certificate with FMCSA. For liability coverage that filing is usually a Form BMC-91 or BMC-91X (49 CFR 387.313). Insurers may file them online (49 CFR 387.323). The endorsement and the bond must be issued in the carrier's exact name (49 CFR 387.15). The insurer must be allowed to write policies in the states where you run, or in your home state with an agent for service of process (49 CFR 387.11).
What does the federal minimum cover, and what does it not?
The minimum is public liability. That means liability for bodily injury and for damage to or loss of use of other people's property. It includes the cost of environmental cleanup (49 CFR 387.5). It does not pay to repair your own truck. It does not pay for the freight you carry. Part 387 sets no cargo insurance minimum for carriers of general freight. Only household goods carriers have a federal cargo minimum, which is $5,000 for each vehicle and $10,000 for any one event (49 CFR 387.303). A broker or shipper can still require cargo coverage in its contract. Use our cargo insurance checker to see what a policy responds to.
What happens if your insurance lapses?
No carrier may operate a motor vehicle until it has the required coverage in effect (49 CFR 387.7(a)). A policy stays in force until it is ended. The insurer or the carrier can end it with 35 days' written notice, and a new policy can replace the old one (49 CFR 387.7(b) and (c)). A registration remains in effect only as long as the carrier keeps the required security (49 U.S.C. 13906(a)(1)). FMCSA may suspend the registration of a carrier that fails to meet those requirements (49 U.S.C. 13905(f)). A person who knowingly breaks the rule can face a civil penalty, and each day can count as a separate offense (49 CFR 387.17). For a new carrier, running without the minimum coverage fails the new entrant safety audit on the spot.
Do brokers and freight forwarders need insurance or a bond?
A broker must have a $75,000 surety bond or trust fund in effect. FMCSA will not register a broker without one. The bond is filed on Form BMC-84, and a trust fund on Form BMC-85. They protect shippers and carriers if the broker does not carry out its contracts (49 CFR 387.307). A freight forwarder has the same bond amount, and the same liability and cargo limits as motor carriers (49 CFR 387.405). A broker's bond is not liability insurance for trucks. It is a separate requirement.
Why might you need more than the federal minimum?
Registration requires security in an amount not less than the federal minimum and not less than the laws of the states you operate in require, where those apply (49 U.S.C. 13906(a)(1)). Contracts can ask for more. A broker or a shipper may set its own limits in its carrier agreement. Read the insurance clause before you sign, and ask your agent whether your policy meets it.
Related Free Tools
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Frequently Asked Questions
How much liability insurance do I need to get my MC number?+
For a for-hire truck rated 10,001 pounds or more that hauls non-hazardous freight across state lines, $750,000 (49 CFR 387.9). If your whole fleet is under 10,001 pounds, $300,000 (49 CFR 387.303). Your insurer must file proof with FMCSA before it registers you.
Do I need insurance for a hotshot truck or pickup under 10,001 pounds?+
If you haul for hire across state lines, yes. A for-hire fleet with only vehicles under 10,001 pounds GVWR must have $300,000 on file with FMCSA (49 CFR 387.303). Check the GVWR on the certification label, because the rating decides which minimum applies.
What is an MCS-90 endorsement?+
It is an endorsement your insurer adds to your policy. Keeping a copy at your principal place of business is one accepted way to prove the required coverage (49 CFR 387.7(d)). The other ways are a Form MCS-82 surety bond or an FMCSA self-insurance order.
Is cargo insurance required by federal law?+
Not for carriers of general freight. Part 387 sets a federal cargo minimum only for household goods carriers: $5,000 for each vehicle and $10,000 for any one event. A shipper or broker can still require cargo coverage in its contract.
Does my insurance company file with FMCSA, or do I?+
Your insurer files the certificate. It is usually a Form BMC-91 or BMC-91X, and insurers may file online (49 CFR 387.313 and 387.323). You keep the MCS-90 or bond proof at your office. You can check your filing on FMCSA's Licensing and Insurance site.
How long does it take to cancel a policy?+
Either the insurer or the carrier ends it by giving the other 35 days' written notice. The notice period starts on the date it is sent. A new policy can replace the old one sooner (49 CFR 387.7(b) and (c)). You may not operate during any gap.
More federal trucking rules
- Hours of Service Rules for Truck Drivers
- ELD Mandate: Who Needs an ELD
- DOT Roadside Inspection Levels Explained
- DOT Drug and Alcohol Testing Rules
- Driver Qualification File Requirements
- DVIR and Vehicle Maintenance Rules
- New Entrant Safety Audit Requirements
- Hours of Service Exceptions and Exemptions
- CDL Classes, Endorsements and ELDT Training
- DOT Physical and Medical Card Requirements
- Drug and Alcohol Clearinghouse Requirements
- Cargo Securement Rules for Trucks
- Hazmat Basics for Truck Drivers and Carriers
- USDOT Number and Biennial Update Requirements
- Safety Ratings, Compliance Reviews and DataQs
- Federal Truck Size and Weight Limits
- California Clean Truck Check (HD I/M)
- Truth-in-Leasing Rules for Owner-Operators
- Form 2290 Heavy Highway Vehicle Use Tax
- Truck Driver Phone, Texting and Seat Belt Rules
- Railroad Crossing Rules for Truck Drivers
- Truck Emergency Equipment and Warning Triangle Rules
- Truck Windshield, Dash Cam and Mirror Rules
- CDL Disqualification: Major and Serious Offenses
- Truck Tire Rules: Tread Depth, Retreads and Pressure
- Trailer Reflective Tape (Conspicuity) Rules
- Truck Brake Rules: Pushrod Stroke, Lining Thickness and ABS
- Driver Conduct Rules: Alcohol, Drugs, Fatigue, Passengers and Pre-Trip Checks
- English Language Proficiency for Truck Drivers: The 391.11(b)(2) Rule
- Weigh Station Rules: Who Must Stop and What Happens If You Skip
- Truck Lighting Rules: Required Lamps and Reflectors (49 CFR 393)
- Driver Road Test Rules: The Company Road Test and Certificate (49 CFR 391.31)
Related terms and pages
Sources
- 49 CFR 387.9, Financial responsibility, minimum levels (eCFR)
- 49 CFR 387.7, Financial responsibility required (eCFR)
- 49 CFR 387.303, Security for the protection of the public (eCFR)
- 49 CFR 387.307, Property broker surety bond or trust fund (eCFR)
- 49 U.S.C. 13906, Security of motor carriers, brokers, and freight forwarders
- 49 U.S.C. 13905, Effective date and suspension of registration
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This is a plain-language summary for reference, not legal advice. Check the official rule text before you rely on any detail. Ask a compliance professional about your own operation.