Commercial Truck Insurance Requirements Explained

When running a business, it's vital that you not only possess the necessary tools and resources at your disposal but also that you take measures to keep those resources safe.

This is why trucking company insurance isn't optional if you want to keep your business running smoothly and profitably. Truck insurance premiums are rising, but you may still locate policies that can provide peace of mind and reduce risks as you run your business.

New and established enterprises are subject to additional commercial truck insurance regulations beyond basic liability coverage.

To comply with federal regulations, interstate carriers must meet certain insurance requirements detailed on the FMCSA website.

The FMCSA will only provide an MC number with proof of public liability insurance, which must include protections for both property damage and personal injuries.

In the event of an accident in which the truck driver is found at fault, public liability insurance will kick in to protect both the public and the truck driver. When a pedestrian or another driver is harmed in a collision, the Bodily Injury coverage of their liability insurance will help pay their medical bills. Once an accident occurs and causes damage to someone else's property, your property damage will cover the cost of making repairs.

What Does FMCSA Dictate About Commercial Truck Insurance?

The FMCSA mandates that commercial trucks have public liability insurance, which pays for damages to people and their property up to specific limits based on the kind of cargo being transported:

• Cargo under 10,000 pounds and not considered dangerous (non-hazardous) can be transported for $300,000.
• Cargo weighing more than 10,000 pounds might cost between $750,000 and $5,000,000.
• Transportation of home items is covered by cargo insurance of up to $5,000 per vehicle.
• Insuring home items in transit is $10,000 per incident.
• $1,000,000 is required for oil transported by private and commercial carriers.

Remember, these are the very lowest restrictions that will be tolerated on a federal level. Regardless of the cargo you transport, many brokers and shippers will insist that you carry at least $1,000,000. Many individuals and businesses in the transportation industry would benefit immensely from more extensive insurance plans.

Getting commercial truck insurance is easier than you think, but you still need to provide your agent with as much data as possible about your business so they can select the best coverage for you. The following are some things you will need to get going:

• A commercial driver's license (CDL) if the load exceeds 26,000 pounds
• DOT Authority and MC

You also need to include information about each vehicle you're adding to the coverage, including:

• Model
• VIN Number
• Year
• Make

Those who own trucks or operate a trucking business should get extra insurance to protect themselves completely in case of an accident.

For this reason, it is crucial for truck drivers and transportation businesses to partner with a reliable insurance provider that values its customers - this guarantees that each client receives tailor-made insurance. Coverwallet can help here. Contact a Coverwallet insurance agent today for quality insurance