Trucking Insurance Requirements for a New Authority (What Brokers Actually Check)
The federal minimum is $750,000. Almost no broker will book you at that number. Here is the coverage stack that gets you loads.
By Day One Authority · Updated
The short answer
- Federal minimum for general freight is $750,000 primary liability; the market standard brokers demand is $1,000,000.
- Cargo insurance is not federally required for general freight, but $100,000 is universally required by brokers.
- Physical damage covers your truck. Liability does not. If you have a lien, the lender will require it.
- Non-trucking liability covers the truck when you are not under dispatch — bobtail coverage is not optional in practice.
There are two sets of insurance requirements in trucking: the ones the federal government enforces and the ones that decide whether you can actually book freight. New carriers routinely satisfy the first and fail the second, then wonder why every broker declines them.
The coverage stack, line by line
| Coverage | What it pays for | Typical requirement |
|---|---|---|
| Primary auto liability | Injury and property damage you cause to others | $1,000,000 (federal minimum $750,000) |
| Motor truck cargo | Loss or damage to the freight you are hauling | $100,000 |
| Physical damage | Your own tractor and trailer — collision and comprehensive | Actual cash value; required by lienholders |
| Trailer interchange | Damage to a trailer you pull that you do not own | $25,000–$50,000 |
| Non-trucking liability | Liability while not under dispatch (bobtail/personal use) | Recommended for all leased and owner-operators |
| General liability | Premises and completed-operations exposure off the truck | $1,000,000 (some shippers require it) |
| Reefer breakdown | Cargo loss from refrigeration failure | Endorsement for reefer operations |
Federal minimums by cargo type
- General freight, non-hazardous, over 10,001 lbs: $750,000 combined single limit.
- Oil and certain hazardous substances: $1,000,000.
- Hazardous materials requiring placards, and bulk hazmat: $5,000,000.
- Household goods carriers: $5,000 per vehicle / $10,000 per occurrence cargo minimum.
- Passenger carriers: $1,500,000 to $5,000,000 depending on seating capacity.
What drives your premium
Underwriting a brand-new authority is an exercise in proxies, because you have no loss history. Every input below moves the number, and several of them are choices you make before you ever request a quote.
| Factor | Effect on premium |
|---|---|
| Years of verifiable CDL experience | Under 2 years can double the quote or cause declines |
| Driver age under 25 or over 70 | Significant surcharge |
| MVR — accidents, violations, suspensions | Largest single lever |
| Radius of operation | Under 250 miles is materially cheaper than 48-state |
| Commodity hauled | Dry van and general freight cheapest; produce, autos, hazmat highest |
| Truck value and age | Drives physical damage cost; very old units can be hard to place |
| Garaging location | Metro and certain states carry heavy loadings |
| Prior authority history | A revoked prior docket is a serious red flag |
Realistic first-year cost
For one power unit, general dry van freight, a clean MVR, and three or more years of experience, plan on $12,000 to $18,000 annually for liability plus cargo, with physical damage on top if you have a note. Expect 20% to 35% down and monthly installments on the balance. Under two years of experience, reefer, flatbed, or a metro garaging address can push the total past $22,000.
Questions to ask before you bind
- 01Is the carrier admitted or surplus lines in my state, and what is its AM Best rating?
- 02What is the cargo deductible, and does it change by commodity?
- 03Are there radius, commodity, or scheduled-driver restrictions that void coverage?
- 04Is reefer breakdown included or excluded?
- 05How fast can you issue certificates and add additional insureds — hours or days?
- 06Will you file the 91X electronically, and can you confirm when it posts?
- 07What happens to my premium if I add a driver mid-term?