Insurance is not optional in trucking, and the number the law requires is not the number brokers require. Understanding both saves you from the most common new-carrier rejection: a carrier packet that is technically legal and still gets thrown out.
The federal minimums (49 CFR Part 387)
| Operation Type | Minimum Auto Liability |
|---|---|
| For-hire, non-hazmat, under 10,001 lbs (cargo vans, sprinters) | $300,000 |
| For-hire, non-hazmat, 10,001+ lbs (most Class 8 trucks) | $750,000 |
| For-hire, hazmat (oil, gasoline, explosives) | $1,000,000 to $5,000,000 by commodity |
| Passenger transportation (buses) | $5,000,000 |
For most owner-operators running a Class 8 tractor-trailer hauling general freight, the FMCSA minimum is $750,000 in auto liability. That is the floor. Nobody who matters actually operates at it.
What each coverage type actually does
Auto liability (primary liability)
Covers bodily injury and property damage you cause to third parties while operating commercially. This is the one the FMCSA mandates and the one that keeps your authority active. You cannot legally operate without it.
Cargo insurance
Covers the freight in your care if it is lost, damaged, or stolen. The FMCSA sets no federal cargo minimum, which surprises people. Brokers set it instead, and $100,000 per occurrence is the practical floor. High-value freight such as electronics, pharmaceuticals, and automotive often needs $250,000 or more. If you are hauling vehicles, see our car hauling guide, where cargo limits jump considerably. More detail in our cargo insurance guide.
Physical damage
Covers your own truck and trailer. Not an FMCSA requirement, but mandatory if you have a loan or lease, and functionally mandatory anyway: a totaled truck with no physical damage coverage is the end of the business.
General liability
Covers non-driving incidents, such as dropping a pallet on a warehouse floor. Separate from auto liability. Many shippers and some brokers want $1,000,000.
Non-trucking liability (bobtail)
Covers you driving while not under dispatch. This matters mostly if you are leased onto another carrier, since their policy only covers you under dispatch. Running your own authority, your primary liability generally covers you at all times and bobtail is usually redundant.
The two filings that trip up new carriers
BMC-91. Your insurer files this with the FMCSA to prove you carry the required liability. You do not file it. Your MC authority does not activate until it lands, which is why so many new carriers sit waiting and blame the FMCSA when the holdup is actually their insurance agent.
MCS-90. An endorsement on your liability policy guaranteeing the public gets paid up to the federal minimum, even for losses your policy would otherwise exclude. Read that carefully: it protects the public, not you. Your insurer can turn around and bill you for whatever it pays out under it.
What brokers actually require
The legal floor and the commercial reality are different numbers. Most major national brokers want:
- $1,000,000 auto liability, not $750,000
- $100,000 cargo minimum
- $1,000,000 general liability in some cases
Carrying $750,000 makes you legal and unhireable at the same time. If you are shopping a policy right now, buy the million. It is the difference between a carrier packet that gets approved and one that gets deleted. See our guide on which brokers work with new carriers.
Proving your coverage
Brokers do not want your policy. They want a Certificate of Insurance, which is a one-page summary your agent generates. That document has its own rules and its own ways of getting your packet rejected, so we covered it separately: Certificate of Insurance for truckers.