Depending on the state you live in, the minimum amount of insurance required for a trucking company can vary significantly. The Federal Motor Carrier Safety Administration (FMCSA) has specific limitations for truck drivers, but Texas typically requires a minimum of $300,000 in coverage ranging up to $5,000,000.
The amount of minimum coverage varies depending on if the truck is operating on an interstate basis or whether it only operates within Texas borders.
Heavier trucks that transport hazardous goods require higher coverage limits to compensate for the amount of risk involved. However, commercial trucks operating within Texas are legally required to have the minimum coverage options:
If you own trucks that operate across state lines, you should also check the minimum FMCSA insurance requirements. For instance, a truck that carries household goods outside state lines and weighs over 10,001 pounds needs a minimum coverage of $750,000.
In addition, it is important to note that the listed requirements are the legal insurance minimums required. Purchasing higher coverage limits can provide a more effective safety net for trucking companies that might incur unexpected losses.
Read on to learn more about the average cost of monthly trucking insurance at Assured Standard!
As an insurance underwriter, Marie knows what businesses need to do to make sure their insurance applications are approved.