Who needs it
For-hire motor carriers hauling property across state lines in trucks rated at 10,001 lb or more must carry it under federal rules. If you only haul within one state, that state's rules apply, and they vary.
What it pays for
- Injuries to other people when your truck causes a crash
- Damage to other people's vehicles and property, such as cars, guardrails and buildings
- Your legal defense if you're sued over a covered crash
- Proof of coverage your insurance company files with FMCSA (Form BMC-91X) so your authority can stay active
What it won't pay for
- Damage to your own truck or trailer (that's physical damage)
- The freight you're hauling (that's motor truck cargo)
- Your own injuries, or injuries to your employees (that's occupational accident or workers' comp)
- Trucks and drivers not listed on the policy, usually
- Anything above your limit
What moves the price
We don't show prices online. These are the things an agent and the insurance companies look at.
- Driving records and experience of every driver
- How long you've had your authority
- Where you run and how far (radius)
- What you haul
- Your claims history (loss runs)
- The limit you choose
Real situations
- Your driver rear-ends a car in slow traffic. Liability pays the other driver's medical bills and car repairs, up to your limit. Your own truck's damage goes under physical damage.
- Your trailer swings wide on a tight turn and takes out a store's sign and a parked car. Liability pays to fix both.
Common questions
Sources
- 49 CFR 387.3: who the federal liability minimums apply to
- 49 CFR 387.9: minimum levels of financial responsibility
- 49 CFR 387.7: financial responsibility required (Form MCS-90)
- 49 CFR 387.301: liability filings with FMCSA; cargo filings for household goods movers
- 49 CFR 387.313: Form BMC-91X filed with FMCSA
- T.H.E. Insurance Co. v. Larsen Intermodal (5th Cir. 2001), quoting the MCS-90 reimbursement clause