Trucking Insurance Requirements: What New Carriers Must Know

Key takeaway

Trucking insurance requirements for new carriers are federally mandated coverages that must be in place before operating authority becomes active. At a minimum, most new trucking companies must carry primary auto liability insurance that meets FMCSA limits, plus cargo coverage expected by shippers. Getting this wrong can delay authority, void contracts, or shut down operations before they start.

Starting a trucking company is paperwork-heavy, deadline-driven, and unforgiving. Many new carriers assume insurance is just another box to check. It is not.

Trucking insurance requirements determine whether your authority activates, whether brokers will work with you, and whether a single claim can end your business. If you miss a filing or buy the wrong coverage, you can sit idle for weeks while expenses keep piling up.

Here is what new carriers must know before they haul their first load.

What are trucking insurance requirements for new carriers?

Trucking insurance requirements are the minimum coverages and filings a carrier must maintain to legally operate commercial vehicles for hire. These requirements are enforced at the federal level and often supplemented by state rules and shipper expectations.

For new carriers, insurance is not optional or flexible. Coverage must be active, properly filed, and continuously maintained. A lapse can suspend your authority.

Federal insurance requirements to activate authority

The federal government, through the Federal Motor Carrier Safety Administration, sets baseline insurance rules for interstate trucking companies.

Primary auto liability coverage

Primary auto liability is mandatory for nearly all for-hire motor carriers. This coverage pays for bodily injury and property damage you cause to others in an at-fault accident.

Without active liability insurance on file, your authority will not activate.

FMCSA minimum limits

FMCSA sets minimum liability limits based on the type of freight hauled. Common thresholds include:

• General freight carriers: $750,000 minimum liability
• Certain higher-risk operations: higher limits may apply

Always verify current limits directly with FMCSA guidance.

Your insurer must file proof of coverage directly with the FMCSA. Buying a policy alone is not enough.

Cargo insurance expectations

While cargo insurance is not federally mandated for most carriers, it is effectively required to operate.

Brokers and shippers almost always require cargo coverage before tendering loads. Typical expectations range from $100,000 in cargo coverage, but requirements vary by freight type.

Cargo insurance protects the goods you haul, not your truck or trailer. Without it, one damaged shipment can wipe out months of revenue.

Additional coverages most new carriers need

Meeting minimum requirements is not the same as being properly protected. Most new carriers need several additional policies to operate safely.

Physical damage insurance

Physical damage insurance covers your truck and trailer against collision, theft, fire, and weather losses.

If your vehicle is financed or leased, physical damage is almost always required by the lender. Even owner-operators with paid-off equipment often carry it because replacement costs are high.

Non-trucking liability and bobtail

If you lease onto a motor carrier or operate under dispatch agreements, non-trucking liability or bobtail coverage may be required. These policies cover personal or off-duty use when you are not under load.

Coverage details vary, so policy wording matters.

Workers’ compensation considerations

Workers’ compensation rules depend on how your business is structured and which states you operate in. Some states require coverage even for owner-operators, while others do not.

State labor departments and insurance regulators provide guidance. Verify requirements through your state authority or the U.S. Department of Labor.

State-level insurance and filing differences

Federal rules are only part of the picture. States may require additional filings, higher limits, or specific endorsements for intrastate operations.

For example, state departments of transportation or insurance commissioners may impose different requirements for vehicles operating solely within state lines. Always check with your state regulator or insurance department for confirmation.

Common insurance mistakes new carriers make

New carriers repeat the same errors, and they are costly.

• Buying minimum coverage without understanding broker requirements
• Failing to complete FMCSA insurance filings on time
• Letting policies lapse during the first year
• Choosing coverage based on price instead of exposure
• Not updating insurance after changing operations

FMCSA compliance rules are publicly available, but interpreting them correctly often requires professional guidance.

How to get compliant without overpaying

The goal is not just to buy insurance. The goal is to buy the right insurance.

New carriers should align coverage with operations, equipment value, freight type, and growth plans. Over-insuring wastes cash. Under-insuring risks shutdown.

Working with an advisor who understands new authority filings, broker expectations, and DOT compliance can shorten activation timelines and prevent expensive corrections later.

FAQ

What insurance is required to activate trucking authority?

• Primary auto liability insurance with FMCSA-required limits must be active and properly filed.

Is cargo insurance legally required for new carriers?

• Often not federally required, but nearly always required by brokers and shippers.

Can I operate before my insurance is filed with FMCSA?

• No. Authority will not activate until filings are complete and accepted.

Do owner-operators need workers’ compensation?

• It depends on the state and business structure. Verify with state regulators.

What happens if my insurance lapses?

• Your authority can be suspended, and reinstatement can take weeks.

Is minimum coverage enough for a new trucking company?

• Usually not. Minimums may satisfy regulators but fail broker requirements.

If you are launching a new trucking company or operating under a new DOT number, now is the time to verify your coverage. A quick review can confirm your filings, limits, and endorsements so your authority activates on time and your business starts on solid ground.