Trucking & FMCSA Insurance Requirements (2026 Guide)

Commercial auto insurance policies are insurance policies that apply to vehicles used for business activities. They protect your business against liability for damage from auto accidents.

How Does Commercial Auto Insurance Work?

Commercial insurance is a specific grouping of auto insurance policies developed to provide compensation to businesses from costs associated with auto accidents.

Who Needs Commercial Auto Insurance?

Any company that uses vehicles to conduct its business needs commercial auto insurance. You need commercial auto insurance for any vehicles that are:

• Used for business
• Carrying a commercial license plate or tag
• Registered commercial
• Owned by a partnership, LLC, or corporation
• Used to transport people or goods for a fee
• Operated by employees

Is Commercial Auto Insurance Mandatory?

If you own, lease, hire or use vehicles for your business, you need to carry at least liability coverage. In fact, it’s mandatory in most states, and companies that move goods or people across state lines are required by federal law to have it.

It’s also highly recommended that businesses purchase commercial vehicle insurance that covers damage caused to them, either from a collision or otherwise. Commercial auto insurance companies can help insure you and your fleet with the proper coverage for your business.

While both commercial and personal auto insurance cover liability and damages for vehicles, personal auto policies typically only cover one person driving their own car. Meanwhile, commercial auto insurance policies cover businesses. Therefore, commercial fleets need to be covered by a comprehensive commercial policy.

There are many types of coverage available for commercial vehicle insurance. Common coverages include:

Bodily Injury Liability Coverage

Bodily liability, also called primary liability, is essential coverage that provides payment in the case of injury or death as a result of an accident for which you’re at fault. This coverage is mandated by federal law for all drivers and may cover legal fees depending on the purchased policy.

Property Damage Liability Coverage

Property damage liability is another mandatory type of insurance coverage for all drivers. Often categorized under general liability, property damage liability covers damage to another person’s vehicle or property in case of an accident.

Medical Payments, No-Fault, or Personal Injury Coverage

Personal injury coverage, also called medical payment or no-fault coverage, usually provides compensation for medical costs for the driver and passengers in the event of an accident regardless of fault.

Uninsured Motorist Coverage

Uninsured motorist coverage covers medical expenses and sometimes property damage costs caused by a hit-and-run or uninsured driver. Underinsured motorist coverage is similar in that it covers costs caused by an at-fault driver without adequate insurance coverage.

Comprehensive Physical Damage Coverage

Comprehensive physical damage coverage covers vehicles or trailers that sustain non-collision-related damage. Some comprehensive physical damage coverage examples include damage caused by fire, flood, theft, and vandalism.

Collision Coverage

Collision coverage pays for damages to vehicles or trailers caused by an accident or collision.

Let’s say you own a small trucking company and have a driver who gets in an accident. While backing out into traffic, another driver was coming down the street, and your employee didn’t see them. So it was determined that the accident was your employee’s fault.

Luckily, you have a comprehensive commercial truck insurance policy for just this reason. Your property damage liability coverage will cover the costs of repairing the other driver’s car. Unfortunately, the other driver was also injured in the accident, so your bodily injury liability coverage will kick in.

Your driver also sustained some minor injuries – good thing you have personal injury coverage. In addition, there was damage to your trailer, which insurance will cover under collision coverage. After paying your deductibles, your commercial truck insurance will cover your costs, helping you avoid severe personal financial liability.

When purchasing a commercial auto insurance plan, it’s essential to consider a few key factors that affect your business.

Insurance Agent

Commercial insurance requirements are often more complicated than personal auto insurance. You may have different coverage needs depending on what you’re hauling and where you operate. That’s why choosing a reputable and experienced commercial insurance agent to help you decide on the proper coverage is essential.

Policy Limits

When choosing a commercial auto insurance policy, be sure to adequately set and understand the limits for each type of coverage you will have. In addition, you should always know how much your insurance company will pay out to you for any covered claims.

Coverage Needs

Be sure that your commercial auto insurance covers all your needs. Having sufficient coverage for yourself, your trucks, cargo, and employees can protect you from serious legal and financial liability.By only meeting the minimum insurance requirements and focusing on price, you could end up missing essential coverage for your business.

Deductibles

Like personal auto insurance, almost no commercial auto insurance policies will cover 100% of costs. When you make a claim, you have to pay a share out of pocket, called a deductible. Only then will the insurer pay the rest of your claim. Make sure you understand your deductible limit and that you can pay out if necessary.

Industry Risks

Depending on your company’s industry, you will have different commercial auto insurance needs. For example, trucking companies should also have extra insurance for cargo and trailer interchange if applicable. Owner-operators should have bobtail insurance. Meanwhile, towing companies need on-hook towing insurance.

Having adequate commercial insurance coverage can give you peace of mind that your company won’t be ruined by a single accident. The protection provided by commercial vehicle insurance can help you avoid severe financial strain and hefty lawsuits.

You will also have liability protection and medical coverage in case of an accident. You can protect your employees, equipment, and company from the unexpected through a comprehensive commercial insurance plan.

It’s never a disadvantage to be protected under commercial auto insurance. However, some people find the monthly premiums on the policies to be high.

FMCSA insurance requirements are designed to increase safety and reduce liability within the trucking industry. Interstate and intrastate carriers are required to file proof of insurance with the FMCSA, as well as legal representation forms.

Ensuring FMCSA insurance requirements are critical to safely getting on the road. Let’s dive into what those requirements are and what the process looks like.

The FMCSA or Federal Motor Carrier Safety Administration is an agency within the United States Department of Transportation. The FMCSA regulates the trucking industry to prevent crashes, injuries, and fatalities. FMCSA license and insurance are requirements all carriers must meet.

The FMCSA requires commercial auto liability insurance. According to the FMCSA, they require insurance between $750,000 and $5,000,000, depending on the type of cargo being transported. For non-hazardous materials being transported in vehicles that weigh less than 10,001 lbs.

BMC-91 or BMC-91X

The FMCSA forms BMC-91 or BMC-91X is a form required of motor carriers and freight forwarders. It pertains to public liability insurance. This type of insurance relates to property damage, environmental restoration and bodily injury. It is required for all carriers transporting people or goods across state lines.

Minimum for freight ranges from $750,000 to $5,000,000; for passengers it is $5,000,000. For vehicles with a capacity of 15 passengers or fewer, the minimum is $1,500,000.

BMC-34 or BMC-83

The FMCSA forms BMC-34 or BMC-83 are required for household goods motor carriers and household goods freight forwarders. This pertains to cargo insurance. The minimum is $5,000 per vehicle plus $10,000 per occurrence. Of course, higher limits are available and recommended in most cases.

BMC-84 or BMC-85

The FMCSA forms BMC-84 or BMC-85 pertain to freight forwarders and brokers of freight. Brokers and freight forwarders need proof of insurance of at least $75,000. The BMC-84 is a surety bond of $75,000. In this case, brokers pay a percentage of the $75,000 as a monthly or yearly premium. For the BMC-85, brokers pay the full $75,000 into a trust fund as insurance.

BOC-3

The FMCSA BOC-3 form is filed by process agents on behalf of the carrier. It is required for interstate transportation companies.

MCS-90

The FMCSA MCS-90 form is a hazmat carrier safety permit. This endorsement must be attached to an auto liability policy to meet federal requirements. This form is required for both interstate and intrastate trucking companies.

Proof of insurance is arranged directly with the FMCSA by your insurance company through online filings. To provide FMCSA proof of insurance, request that your insurance company submit the insurance filings online.

You can update insurance information to FMCSA online, by email, fax, or mail.

• FMCSA website: To update your USDOT licensing number and insurance, fill out the MCS-150 form. You can submit this via web form here.
• Fax: To update insurance information via fax, you can send the signed MCS-150 to (202) 366-3477 or (606) 330-3802.
• Mail: To update insurance information via mail, you can send the signed form to:

Federal Motor Carrier Safety Administration
Office of Registration and Safety Information (MC-RS)
Applications Production Team, 6th Floor
1200 New Jersey Avenue, S.E.
Washington, DC 20590

Note that the older versions of the MCS-150, called the MCS-150B and MCS-150C are no longer accepted by the FMCSA.

In preparing FMCSA insurance, keep in mind the applications, legal process, and where to file. Here is everything you need to know:

Applications and Legal Process Agent Documents

In addition to filing an application for operating authority, you must have your specific required insurance. Beyond the basic insurance requirements, all carriers must have legal process agent documents on file with the FMCSA. These processing agents are representative of the carrier in case of court hearings or court papers being served. Process agents can be selected from a recommended list on the FMCSA website.

Submit required forms within 90 days

Applicants and carriers will receive a designated docket number. Once you receive the required docket number, you must file within 90 days. According to the FMCSA, these filings are required within 90 days after the FMCSA has published a public notice of intention to register the applicant. For this, be prepared with your registered agent and insurance company to meet the necessary deadlines.

Know Where to File

In order to meet the 90-day deadline, be prepared and create a filer account within the FMCSA. Normally only insurance companies or insurers can create insurance filer account requests. Insurance companies should file forms BMC-91, 91X, 34, and 84. Financial institutions should file form BMC-85. To request a filer account, email mc-ecc.comments@dot.gov or fill out an online request via web form.

You can also mail the request to:

Office of Registration and Safety Information (MC-RS)
1200 New Jersey Avenue SE, W63-105
Washington, DC 20590

Coverage

When preparing FMCSA filings, ensure that you have adequate insurance coverage, not only to meet FMCSA minimums but to protect your company from liability. While $750,000 is the FMCSA minimum, carefully consider meeting all requirements for your freight and vehicles.

Minimums

For many companies, the protection of valuable assets makes having a higher insurance premium essential. Having only the minimum is not always the best move because you want enough coverage to have yourself and your equipment properly protected. Your insurance company can help you assess the equipment value and freight value for your company to ensure adequate coverage.

Special Coverage

In addition to standard coverage, carriers must acquire special coverage for special freight including household goods, hazardous materials, temperature-sensitive, high-value freight, and other protected freight.

You may be wondering why the FMCSA and other governing bodies treat new carriers so much differently than established freight companies. The answer is simple. It’s because new carriers have not proven themselves yet.

Think of a new carrier as a 16-year-old driver who has just earned their license and purchased their first car. These inexperienced drivers are subjected to much higher insurance premiums, even if their parents have spotless driving records.

The FMCSA takes a similar stance when it comes to new carriers. They strictly vet each carrier and require every carrier to hold a valid, high-limit insurance policy until the company they work for demonstrates that they are safe and responsible.

The FMCSA requires all new carriers to obtain commercial trucking insurance and demonstrate proof of said coverage before they will issue authorities for the company to operate. The exact coverage threshold will vary depending on the size of the vehicles being used, the state that the carrier is based out of, and the type of cargo being hauled.

For instance, a freight carrier operating vehicles that weigh more than 10,000 pounds will need to obtain per-incident coverage between $750,000 and $5,000,000. Plus, new carriers will almost always have to obtain coverage that is on the higher end of the spectrum, especially if they are hauling hazardous freight.

In addition to obtaining commercial trucking insurance, all new carriers must complete an 18-month FMCSA compliance monitoring period.

During this time, the carrier must demonstrate that they are capable of operating safely while also maintaining compliance with all FMCSA guidelines. This 18-month monitoring period is explained in greater detail below.

FMCSA New Entrant Safety Audit Checklist

In order to adhere to FMCSA compliance mandates, new carriers must do the following during the 18-month review period:

• Operate safely
• Maintain current records
• Conduct periodic inspections and perform requisite maintenance on all CMVs
• Pass an FMCSA safety audit within 12 months of beginning operations
• Establish and maintain a drug and alcohol testing program

If a carrier does not adhere to the guidelines on this FMCSA new entrant safety audit checklist, they will fail the safety audit.

What Will the FMCSA Review During This Time?

Within the first 12 months of operations, new carriers must schedule and partake in an FMCSA safety audit. During the audit, the FMCSA will carefully review a motor carrier’s records in order to verify that they have established basic safety protocols.

The FMCSA may also perform roadside inspections and examine the carrier’s day-to-day operations throughout the 18-month review period.

Is Anyone Exempt from the New Regulations?

No, all new motor carriers operating within the United States must adhere to FMCSA regulations. This includes successfully completing the entire 18-month review period. Failing to do so will result in a revocation of USDOT registration.

Who Is Involved in the Safety and Compliance Reviews?

The FMCSA is the primary entity that governs safety and compliance reviews. The motor carrier and its staff will also participate in the safety and compliance review process. Each FMCSA safety audit is performed by a U.S. federal safety investigator or a state enforcement officer.

Where Are Safety Audits and Compliance Reviews Held?

Traditionally, safety audits and compliance reviews are held at the new carrier’s place of business. However, the carrier can submit requisite documents electronically as long as they are authorized to do so by the FMCSA. In fact, electronic reviews have become more prevalent in recent years.

What Happens if a New Carrier Fails a Safety Audit?

If a new carrier fails its safety audit, the FMCSA will provide them with a detailed report that outlines each documented violation. They will also provide feedback that can be used to create a corrective action plan (CAP).

While the FMCSA will assist, the carrier is responsible for creating and implementing the CAP, which must be submitted to the FMCSA within a specified number of days. If the CAP successfully remedies all deficiencies, then the carrier will pass the secondary audit. If the CAP does not resolve documented issues or is not submitted on time, then they will lose their DOT registration.

After passing the FMCSA safety audit, new carriers will be closely monitored for the remainder of the 18-month review period. Once this period has concluded, the carrier will receive permanent operating authority. 

While the carrier will still be subject to FMCSA guidelines, they will be inspected and audited far less frequently. They may also be able to acquire more affordable commercial trucking insurance, as they are no longer operating under provisional authority.

Each state has the ability to set additional limitations for new carriers. However, these supplemental guidelines vary greatly between jurisdictions. Therefore, it is vital that you discuss new carrier requirements with the entity that governs commercial carriers within your home state.