How much liability coverage do I need?

FMCSA sets minimum liability limits based on what and how you haul (general freight vs. hazardous materials). Many shippers and brokers require higher limits than the federal minimum.

What happens if my filing lapses?

FMCSA can place your operating authority out of service until a new filing is active. You can't legally run for hire during the gap, and reinstatement takes time.

Insurance Basics for Truckers

The coverages you're required to carry, what they protect, and why a lapse is so dangerous.

Key Facts

Primary liability is required to hold operating authority and must be on file with FMCSA.
Common coverages: primary liability, cargo, physical damage, and non-trucking/bobtail.
If your insurance lapses, FMCSA can revoke your authority and brokers won't load you.
Insurance is one of an owner-operator's largest fixed costs — factor it into cost-per-mile.

The main coverages

Primary liability — required for authority; covers damage you cause to others
Cargo insurance — covers the freight you're hauling
Physical damage — covers your own truck and trailer
Non-trucking / bobtail — for when you're not under dispatch

Why a lapse is serious

Your operating authority depends on active insurance on file with the FMCSA. If coverage lapses, your authority can be revoked, brokers won't load you, and a crash during the gap can leave you personally on the hook for hundreds of thousands of dollars.

Manage the cost

Insurance is one of an owner-operator's biggest fixed costs. ATRI's 2025 operational-costs analysis put truck insurance premiums among the notable line items carriers track. Knowing your cost-per-mile — including insurance — tells you the rates you can actually accept and still profit.

Frequently Asked Questions

How much liability coverage do I need?: FMCSA sets minimum liability limits based on what and how you haul (general freight vs. hazardous materials). Many shippers and brokers require higher limits than the federal minimum.
What happens if my filing lapses?: FMCSA can place your operating authority out of service until a new filing is active. You can't legally run for hire during the gap, and reinstatement takes time.