Question 1

What is BIPD (bodily injury and property damage) insurance?

Accepted Answer

BIPD is the primary liability coverage required by the FMCSA for all interstate motor carriers. It covers injuries to other people and damage to their property caused by your commercial vehicle. Federal minimum limits range from $300,000 to $5,000,000 depending on cargo type, though most carriers purchase $1,000,000 in coverage.

Question 2

Do I need cargo insurance?

Accepted Answer

The FMCSA only requires cargo insurance for household goods (HHG) carriers under 49 CFR 387.303(b). However, most shippers and brokers require proof of cargo insurance before they will tender freight. Standard cargo limits are $100,000, but many contracts require $250,000 or more.

Question 3

How much does truck insurance cost?

Accepted Answer

Commercial truck insurance typically costs between $8,000 and $20,000 per year for a single truck, though rates vary significantly based on your authority age, driving record, cargo type, radius of operation, and equipment value. New authorities generally pay higher premiums that decrease as you build a clean operating history.

Question 4

What is the difference between a trucking insurance broker and a direct carrier?

Accepted Answer

A broker like Full Coverage works with 30+ insurance carriers to compare rates and find the best coverage for your specific operation. A direct carrier only offers their own products. Working with a broker gives you access to more options and competitive pricing without the legwork of calling dozens of companies yourself.

Question 5

What does 'A-rated carrier' mean?

Accepted Answer

An A-rated carrier has been evaluated by AM Best, the leading insurance company rating agency, and received a Financial Strength Rating of A or higher. This means the insurer has a strong ability to meet its ongoing insurance policy obligations. We only work with A-rated or better carriers.

Question 6

What is an MCS-90 endorsement?

Accepted Answer

The MCS-90 is a mandatory endorsement on the BIPD policy for interstate for-hire carriers. It guarantees that the insurance company will pay valid third-party claims even if the policy would otherwise not cover them. It does not expand your actual coverage - the insurer can seek reimbursement from you after paying the claim.

Question 7

What is a BMC-91 filing?

Accepted Answer

A BMC-91 is the proof of insurance filing that your insurance company submits to the FMCSA on your behalf. It demonstrates that you carry the required minimum liability coverage. Without an active BMC-91 on file, the FMCSA can revoke your operating authority.

Question 8

How do I get my MC number?

Accepted Answer

Apply through the FMCSA's Unified Registration System (URS) at portal.fmcsa.dot.gov. You will need a USDOT number first, then apply for operating authority (MC number). The application fee is $300. Processing takes about 4-6 weeks, during which your authority is in 'pending' status.

Question 9

What insurance do I need to activate my authority?

Accepted Answer

At minimum, you need BIPD liability insurance with a BMC-91 filing ($750,000 minimum for general freight, $1,000,000 for hazmat, $5,000,000 for certain hazmat classes) and a BOC-3 process agent designation. If hauling household goods, you also need cargo insurance with a BMC-32 filing.

Question 10

Why is new authority insurance so expensive?

Accepted Answer

New authorities have no operating history for insurers to evaluate. Without a track record of safe operations, carriers view you as a higher risk. Premiums typically decrease 15-30% after your first year with a clean record, and continue to drop through years two and three.

Question 11

Can I get insurance before my authority is granted?

Accepted Answer

Yes. Most carriers will bind coverage and file your BMC-91 while your authority is still in pending status. In fact, your authority cannot become active without the BMC-91 filing, so you need insurance before activation. We can start the process as soon as you have your USDOT number.

Question 12

What is the BOC-3 filing?

Accepted Answer

The BOC-3 is a designation of process agents filed with the FMCSA. It lists an agent in each state who can accept legal documents on your behalf. It is required for all carriers with operating authority and typically costs $30-50 per year through a filing service.

Question 13

How long does it take to get my authority activated?

Accepted Answer

After your MC application is approved (4-6 weeks), you enter a mandatory 10-day protest period. Once that clears, your insurance company files the BMC-91, and your authority goes active within a few business days. Total timeline from application to active authority is typically 6-8 weeks.

Question 14

What is the difference between bobtail and non-trucking liability (NTL)?

Accepted Answer

Both cover your truck when operating without a trailer, but they apply in different situations. Bobtail insurance covers you while driving without a load under dispatch (for example, returning from a delivery). NTL covers personal use of the truck when you are not under dispatch at all. If you lease to a motor carrier, NTL is typically what you need.

Question 15

What does physical damage insurance cover?

Accepted Answer

Physical damage insurance covers repairs or replacement of your own truck and trailer. It includes comprehensive coverage (theft, fire, vandalism, weather) and collision coverage (accidents). If your truck is financed or leased, your lender will require physical damage coverage.

Question 16

Do I need general liability insurance in addition to my trucking liability?

Accepted Answer

Your BIPD policy covers liability while operating your commercial vehicle. General liability (GL) covers your business operations off the road - like slip-and-fall at your office, advertising injury, or damage at a customer's location during loading/unloading. Many shippers require both.

Question 17

What is trailer interchange insurance?

Accepted Answer

Trailer interchange coverage protects trailers you are pulling that belong to someone else under a written interchange agreement. If you damage or destroy a trailer that is not yours, this coverage pays for the repair or replacement. It is common in intermodal and drayage operations.

Question 18

What is occupational accident insurance?

Accepted Answer

Occupational accident (occ/acc) insurance provides benefits similar to workers' compensation for owner-operators who are classified as independent contractors and not eligible for workers' comp. It covers medical expenses, disability, and death benefits resulting from work-related accidents.

Question 19

Do I need umbrella or excess liability insurance?

Accepted Answer

An umbrella or excess policy provides additional liability coverage above your primary BIPD limits. With jury verdicts in trucking accidents regularly exceeding $10 million, many carriers purchase $1-5 million in excess coverage. Some shippers and brokers require it as a condition of hauling their freight.

Question 20

What is hired and non-owned auto coverage?

Accepted Answer

This covers liability when your employees drive vehicles that your company does not own - rental trucks, personal vehicles used for business, or temporarily hired equipment. It fills a gap that your standard commercial auto policy does not cover.

Question 21

How do I file a trucking insurance claim?

Accepted Answer

Call your insurance broker (us at 317-427-5599) as soon as possible after an incident. We will help you file the claim with your carrier, gather the necessary documentation, and follow up through the process. Do not admit fault or sign anything at the scene.

Question 22

What do I do after a trucking accident?

Accepted Answer

First, ensure everyone's safety and call 911 if there are injuries. Document everything: take photos, get the police report number, collect witness information, and note the time, location, and conditions. Then call your broker immediately. Do not discuss fault with anyone at the scene.

Question 23

How long do I have to report a claim?

Accepted Answer

Report claims as soon as possible - ideally within 24 hours. Most policies require 'prompt' or 'timely' notice of a claim. Delayed reporting can give the insurer grounds to deny coverage, and evidence becomes harder to collect over time.

Question 24

Will filing a claim increase my premiums?

Accepted Answer

It depends on the circumstances. At-fault accidents and frequent claims will increase your premiums at renewal. Comprehensive claims (weather, theft) typically have less impact. A single not-at-fault claim usually will not affect your rates, but multiple claims of any type can.

Question 25

What is a cargo claim and how is it different from a liability claim?

Accepted Answer

A cargo claim covers damage to or loss of the freight you are transporting. A liability claim covers injury to people or damage to their property caused by your truck. They are separate policies with separate deductibles and limits. A single accident can trigger both types of claims.

Question 26

Why did my trucking insurance premium increase?

Accepted Answer

Common reasons include: claims or accidents on your record, CSA/BASIC score increases, adding new drivers with violations, changes in cargo type or radius, general market hardening, or your authority age bracket changing. We can review your policy to identify the specific factors.

Question 27

How can I lower my truck insurance cost?

Accepted Answer

Maintain a clean driving record, keep your CSA scores low, install cameras and GPS tracking, complete driver safety training, increase your deductibles, bundle multiple coverages, and shop your policy at renewal. Working with a broker who compares 30+ carriers is the most efficient way to find lower rates.

Question 28

Does my credit score affect trucking insurance rates?

Accepted Answer

Some carriers consider your personal or business credit score as a rating factor, especially for small fleets and owner-operators. A better credit score can result in lower premiums, though it is just one of many factors in the overall rating.

Question 29

Do dash cameras lower my insurance rates?

Accepted Answer

Many carriers offer discounts of 5-15% for forward-facing dash cameras, and additional discounts for dual-facing cameras. Beyond the discount, cameras provide critical evidence in accident investigations that can prevent fraudulent claims and prove you were not at fault.

Question 30

Is it cheaper to insure a newer truck?

Accepted Answer

Newer trucks typically have lower liability premiums due to better safety features (collision avoidance, lane departure warnings, automatic braking). However, physical damage premiums are higher because the truck is worth more. The net effect depends on your specific situation.

Question 31

Can I pay my trucking insurance monthly?

Accepted Answer

Yes. Most carriers offer monthly payment plans, though paying annually or semi-annually is usually cheaper because you avoid finance charges. Typical down payments range from 15-33% of the annual premium, with the balance spread over 9-10 monthly installments.

Trucking Insurance FAQ

General Trucking Insurance

New Authority

Coverage Types

Claims

Cost and Savings

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