Trucking Insurance FAQ

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.

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.

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.

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.

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.

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.

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.

Yes. Cargo insurance only covers the freight you haul. Auto liability is the coverage FMCSA requires your insurer to file for your authority (BMC-91/91X plus the MCS-90): $300,000 for vehicles under 10,001 lbs, $750,000 for general freight at 10,001 lbs and up, $1,000,000 for many hazmat loads and up to $5,000,000 for certain hazmat. Most brokers and shippers require $1,000,000. A cargo-only quote will not keep your authority active, so ask for liability, cargo and physical damage to be quoted line by line.

Every market has its own appetite. Some will not write new ventures or require years under your own authority, some exclude operations such as household-goods moving, hotshot, last-mile delivery or hazmat, and some do not write certain states or drivers licensed in them. Missing details also stall quotes, and operation flags like hazmat, reefer, auto hauling, moving or towing change which application a carrier uses. We shop every market your operation qualifies for, including specialty and surplus-lines markets through our wholesale partners that take risks standard carriers will not.

Yes. When we shop your trucking insurance, we come back with every quote we get, and for any company that says no we tell you who it was and why. That way you know exactly where your operation has been shopped and what to fix before you apply again.

They can. Carriers review your public FMCSA record, including inspections, out-of-service rates, crash counts and safety scores, and some markets require satisfactory SAFER/SMS scores before they will quote. Brokers and shippers check the same safety score before giving you freight. When a market declines, we tell you its stated reason so you know whether inspections were the cause.

Your USDOT/MC number, the exact effective date you need, business entity and FEIN, owner details including the owner's driver's license, a current driver list with license numbers, CDL class, hire dates and any violations from the last 5 years, VINs and values for trucks and trailers, lienholders, loss runs from the last 3-5 years dated within 90 days, how and where you operate, the coverages and filings you want, and your budget. Sending it all in one reply lets us quote every market the same week. We look up public FMCSA records and VIN details ourselves.

Some carriers will not price a trucking policy without the owner's driver's license number and state, even when the owner never drives. Sending it up front keeps your quote from sitting parked at those markets while we ask for it.

Underwriters want to see your current claims history, and some markets send a submission back if the loss runs are stale. Ask every insurance company you have had in the last 3-5 years for "currently valued loss runs" so each one is dated within the last 90 days.

Some carriers require a date of hire for every driver to quote, and underwriters do ask about drivers on the list who have already left. Confirming the list is current and giving each driver's name, date of birth, license number and state, CDL class, hire date and experience keeps your quote moving instead of bouncing back with questions.

If a truck still shows on your USDOT record but you sold it or returned it, underwriters will ask about it, and some markets must insure every vehicle owned or operated by the applicant before they will make a federal or state filing. A bill of sale or lease termination shows the truck is gone. Keep your MCS-150 updated so your FMCSA record matches what you actually run.

Add it before the truck runs, not at renewal. A truck that is not on your policy may not be covered, and a claim on it can be denied. An ID card should only be issued after the carrier adds the truck to the policy. Adding a truck mid-term is done by an endorsement, which can carry its own down payment. Some carriers cap how many trucks one policy can hold, and adding past that cap mid-term can lead to cancellation, so tell us before you buy. Send the VIN, where the truck parks overnight, its stated value if you want physical damage, and the lienholder if it is financed or leased.

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.

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.

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.

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.

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.

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.

Your authority stays "Not Authorized" until your insurance company files proof of coverage with FMCSA electronically - a certificate of insurance you send someone does not count. Filings are made after the policy is bound, and some markets will not file until the down payment is received and the risk is accepted. Your BOC-3 must also be on file. You can check your status on safer.fmcsa.dot.gov.

We need your USDOT number (and MC docket if your authority is pending) to submit to insurance markets, because carriers price off your record, your drivers' MVRs, your VINs and how you operate. Register in Motus (motus.dot.gov) first, then send us the quote checklist. Expect first-year new-authority premiums to run high with no loss history; they improve after 1-3 clean years.

Every quote is rated for a specific start date, so "as soon as possible" or "soon" cannot be quoted, and a date that keeps moving holds up quotes and re-quotes. Give us the exact date you need coverage to begin. Never let coverage lapse - a lapse triggers FMCSA action on your authority.

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.

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.

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.

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.

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.

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.

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.

They are different coverages. Physical damage pays to repair or replace your own truck and trailer, and it is only quoted if you ask for it and give a stated value for each unit (plus the lienholder if it is financed or leased). Bobtail and non-trucking liability cover liability for other people's injuries and property when you are driving without a load or off dispatch - they do not pay for your truck. Check your quote for each line by name.

We shop movers, but fewer markets write them. Several carriers do not write interstate household-goods movers or any risk needing federal filings, and some exclude household goods from cargo coverage entirely. Movers are usually placed with specialty and surplus-lines markets through wholesale partners. Tell us up front that you move household goods, because it changes the application and which markets can quote you.

Not with every carrier, but some require it: their liability coverage can be conditional on sharing your ELD data or using their dashcam, and the policy can auto-cancel if you do not. Tell us your ELD or telematics provider and whether you are willing to share data, and we will explain which options fit.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

It depends on the market and the payment plan. Some carriers bill you directly with their own monthly plans, while others can be financed through a third-party premium finance company. We show the financing options with every quote, so tell us your target premium and what you can put down at binding.

Sometimes. Some carriers discount a policy paid in full, while others fix their terms - annual only, with no lower down payment than the plan they quoted. If the down payment is the obstacle, the alternatives are a different market or third-party premium financing, which we lay out with your quotes.

Every carrier checks driving records (MVRs) before finalizing a price. If an accident, ticket, DUI or suspension shows up that was not disclosed on the application, the quote is re-rated - sometimes by tens of thousands of dollars. Tell us about any violations in the last 5 years up front so the first number you see is the real one.