Federal minimums
| Cargo type | Minimum liability |
|---|---|
| General freight, vehicle under 10,001 lbs | $300,000 |
| General freight, vehicle 10,001 lbs+ | $750,000 |
| Oil transported by tank | $1,000,000 |
| Other hazardous materials | $5,000,000 |
| Household goods (cargo insurance) | $5,000 per vehicle / $10,000 per occurrence |
What the market actually requires
Almost every broker and shipper requires $1,000,000 auto liability and $100,000 cargo — well above the federal floor. Budget for the market number, not the legal number.
- Auto liability: $1M is the practical standard.
- Cargo: $100,000 typical; reefer breakdown coverage costs extra and is often excluded by default.
- Physical damage: required by your lender, usually 2–4% of the truck's value.
- Non-trucking liability / bobtail: covers you when not under dispatch.
- General liability: $1M commonly required by shippers for premises and loading operations.
- Workers' compensation or occupational accident, depending on your state and driver classification.
MCS-90 and BOC-3
The MCS-90 endorsement is not coverage for you — it guarantees the public gets paid, and your insurer can seek reimbursement from you. Treat it as a surety, not a benefit.
BOC-3 designates a process agent in every state so you can be legally served. It must be filed by a licensed process agent, costs $25–$150 one time, and is required before authority is granted.
New authority + new CDL + no experience is the most expensive insurance profile in the industry. Two years of verifiable driving history cuts premiums dramatically.