FMCSA Insurance Requirements Explained in Plain English
The federal government requires motor carriers to maintain specific insurance coverage. This guide explains every requirement — what it is, what it means, and what happens if you don't comply. Written for truckers, not lawyers.
Why this matters: FMCSA can revoke your operating authority if your insurance isn't right. Not "might" — will. Insurance compliance isn't paperwork you can deal with later. It's a prerequisite for operating legally. Get it wrong and your trucks stop moving.
The Big Picture
Federal trucking insurance requirements come from 49 CFR Part 387 — the section of the Code of Federal Regulations that governs minimum financial responsibility for motor carriers. In plain English: the federal government says you must be able to pay for damage you cause.
Here's the framework:
Minimum Liability Limits
How much coverage you must carry, based on what you haul and how you operate.
Required Endorsements
Special provisions on your policy (like MCS-90) that protect the public.
Federal Filings
Proof of insurance filed with FMCSA (BMC-91, BMC-91X) so the government knows you're covered.
Process Agent
A BOC-3 filing designating someone to accept legal papers in every state you operate.
Miss any piece and your authority can be revoked. Let's go through each one.
Liability Minimums by Operation Type
The amount of liability insurance you need depends on what you carry and how heavy your vehicles are. FMCSA sets these minimums — your state may require more.
| Operation Type | Vehicle Weight | Minimum Coverage |
|---|---|---|
| General Freight (non-hazmat) | 10,001+ lbs | $750,000 |
| Household Goods | 10,001+ lbs | $750,000 |
| Oil (large quantities) | 10,001+ lbs | $1,000,000 |
| Hazardous Materials (general) | 10,001+ lbs | $1,000,000 |
| Hazmat — Poison, Compressed Gas, Explosives | Any | $5,000,000 |
| Passengers (16+ seats) | N/A | $5,000,000 |
| Passengers (15 or fewer seats) | N/A | $1,500,000 |
What "Combined Single Limit" means
These minimums are expressed as CSL (Combined Single Limit). That means the limit covers both bodily injury AND property damage in a single pool — there's no separate cap for each. If you cause an accident with $500K in bodily injury and $300K in property damage, that's $800K against your $750K limit. The $750K minimum is a single pot for everything.
The minimum is not enough
$750,000 sounds like a lot until you cause a multi-car accident on the freeway. Serious injuries — traumatic brain injury, spinal cord damage, multiple surgeries — can blow through $750K easily. Many shippers and brokers require $1,000,000 in coverage regardless of the FMCSA minimum. And in a lawsuit, anything above your policy limit comes out of your personal assets. Most experienced carriers carry $1M.
The MCS-90 Endorsement
This is the most misunderstood piece of trucking insurance. Let's clear it up.
What it is
The MCS-90 is an endorsement (an add-on) attached to your auto liability policy. It's required on every for-hire motor carrier policy.
What it does
It guarantees that your insurance company will pay claims from the public — even if the claim wouldn't normally be covered by your policy. It exists to protect innocent third parties (other drivers, pedestrians, property owners) from uninsured trucking accidents.
Why it matters to you
If your insurance company pays a claim under the MCS-90 that your policy wouldn't normally cover, they will come after you to get that money back. The MCS-90 is not free coverage for you — it's a guarantee to the public. The carrier pays the claim, then seeks reimbursement from you.
Common MCS-90 misconceptions
- "The MCS-90 is my insurance." No. It's a public protection endorsement. Your actual coverage is your liability policy. The MCS-90 only kicks in when your policy fails to cover something.
- "If I'm in an accident and I'm not at fault, the MCS-90 protects me." The MCS-90 protects the public, not you. Your liability coverage protects you when you're at fault. If you're not at fault, the other party's insurance handles it.
- "I can skip liability insurance and just get an MCS-90." The MCS-90 is attached to a liability policy. You can't have one without the other. And if the MCS-90 has to pay because you had no proper coverage, the carrier will sue you for reimbursement.
- "Only for-hire carriers need it." Generally correct. Private carriers (hauling their own goods) don't need the MCS-90 endorsement, though they still need liability coverage. For-hire carriers with MC authority always need it.
The simple version
The MCS-90 is the government's way of making sure your insurance company can't wiggle out of paying an innocent person you hurt in an accident. It's automatically attached to your policy if you're a for-hire carrier. You don't need to request it separately. Just make sure your agent has written your policy correctly with the proper filings.
BMC-91 and BMC-91X Filings
The BMC-91 is how your insurance carrier proves to FMCSA that you have coverage. It's a federal filing — a document your insurance company sends directly to FMCSA on your behalf.
BMC-91 vs BMC-91X
BMC-91
Certificate of Insurance
Filed by your insurance company. Certifies that you have the required liability coverage and that the policy includes the MCS-90 endorsement. This is what most for-hire carriers use.
BMC-91X
Self-Insurer Certificate
Filed by carriers that self-insure (pay claims out of their own funds rather than buying insurance). Requires proving you have enough financial assets to cover claims. This is only for large, well-capitalized carriers.
What you need to know
- Your agent/carrier handles the filing — you don't file the BMC-91 yourself. When your insurance binds, your carrier electronically files it with FMCSA.
- It takes 24-72 hours to process — After binding, there's a delay before FMCSA shows your insurance as active. This is normal.
- If it's not filed, your authority won't activate — New authorities need the BMC-91 on file before FMCSA will grant operating authority.
- When you cancel or change carriers, a BMC-35 is filed — This notifies FMCSA that your old coverage ended. You have 30 days before authority is revoked.
How to check your filing status
Go to SAFER.FMCSA.dot.gov, search by your USDOT number, and click "Insurance." You'll see your active BMC-91 filing, the carrier that filed it, and the effective date. If it shows "None" or "Pending," call your agent immediately.
BMC-84 (Surety Bond — Freight Brokers)
This one is specifically for freight brokers, not motor carriers. But since many trucking companies also have broker authority, it's worth understanding.
What it is
A $75,000 surety bond (or trust fund) required for anyone with freight broker authority (MC number with broker designation). It protects carriers and shippers who use your brokerage services.
Key facts
- Required amount: $75,000 — This was increased from $10,000 in 2013 under MAP-21
- You don't pay $75K out of pocket — You buy a surety bond from a bonding company. Annual cost is typically $1,500 - $5,000 depending on your credit and history.
- It's filed with FMCSA as BMC-84 — Similar to how BMC-91 works for insurance, the BMC-84 proves your broker bond is active.
- Alternative: BMC-85 Trust Fund — Instead of a surety bond, you can deposit $75,000 in a trust fund. Most people choose the bond because it's cheaper.
Do you need this?
Only if you have broker authority. If you're strictly a motor carrier (you drive the truck yourself or employ drivers), you don't need a BMC-84. If you also broker loads to other carriers, you do. Many owner-operators get both carrier and broker authority — if that's you, you need the bond.
Cargo Insurance Requirements
Here's where it gets nuanced. FMCSA's cargo insurance requirements are narrower than most people think.
Who FMCSA requires to have cargo insurance
- Household goods movers — Required: $5,000 per vehicle, $10,000 per occurrence (49 CFR 387.303)
- Freight brokers — Required through the BMC-84 surety bond (covers cargo payment disputes)
Who FMCSA does NOT require cargo insurance from
- General freight carriers — FMCSA does not mandate cargo insurance for most for-hire truckers. Surprised? Many people are.
- Private carriers — Hauling your own goods means you're self-insuring your own cargo
But you still need it
Just because FMCSA doesn't mandate cargo insurance for general freight doesn't mean you can skip it. Here's reality:
- 90%+ of freight brokers require proof of cargo insurance before assigning you loads
- Load boards (DAT, Truckstop) display your cargo coverage — no coverage, fewer loads
- Shippers include cargo coverage requirements in their contracts
- If cargo is damaged or lost, you're liable as the carrier under the Carmack Amendment — with or without insurance
Standard cargo coverage is $100,000 per occurrence. Cost is typically $1,500 - $3,500/year. It's effectively mandatory even when it's technically optional.
BOC-3 (Designation of Process Agent)
The BOC-3 is simpler than it sounds. It answers one question: "If someone needs to serve you legal papers, who do they give them to in each state?"
What it is
A filing with FMCSA that designates a process agent — a company or person authorized to accept legal documents on your behalf — in every state where you operate. For interstate carriers, that means all 50 states plus DC.
What you need to know
- Required before your authority activates — You can't operate without a BOC-3 on file
- Cost: $30 - $100 one-time — Blanket BOC-3 services cover all states at once
- You don't need to understand the legal details — Just pay a BOC-3 service and they handle the filing
- It's a one-time filing — Unlike insurance, you don't renew the BOC-3 annually (though your process agent may charge an annual fee)
- Many insurance agents offer BOC-3 service — Ask your agent if they can handle it when you bind your policy
The practical version
Google "BOC-3 filing service," pay $30-$100, and it's done. This is one of the easiest compliance items on your list. Don't overthink it. Just make sure it's filed before you try to activate your authority.
How Insurance Filings Work (The Timeline)
Understanding the filing timeline prevents 90% of the panic calls we get from new authorities. Here's the sequence:
You apply for authority
File your OP-1 application with FMCSA. Processing takes 3-6 weeks. During this time, your authority is "Pending."
FMCSA grants your MC number
Your authority is granted but NOT yet active. You can't operate yet. FMCSA is waiting for your insurance filings.
You bind your insurance policy
Your agent writes the policy. You pay the down payment. Coverage is now in effect for you.
Carrier files BMC-91 with FMCSA
Your insurance carrier electronically files proof of coverage. This can take 24-72 hours after binding.
BOC-3 is filed
Your process agent filing goes through. Usually same day if you use an electronic service.
FMCSA activates your authority
Once BMC-91 and BOC-3 are both on file, FMCSA activates your authority. There's typically a 21-day waiting period from grant to activation.
You can legally operate
Your authority shows "Active" on SAFER. You can now haul freight legally.
The 21-day waiting period
After FMCSA grants your MC number, there's a mandatory 21-day waiting period before your authority can become active. This is a public notice period — it allows others to protest your application. During this time, you should be getting your insurance bound and filings submitted. Don't wait until day 20 to start shopping for insurance.
What Happens When Coverage Lapses
This is where things get serious. Insurance lapses in trucking aren't like letting your personal auto policy lapse. The consequences are severe and fast.
Your policy cancels or expires
Your carrier files a BMC-35 with FMCSA notifying them your coverage has ended.
FMCSA issues a warning
You have 30 days to get new coverage and file a new BMC-91. During this period, you're technically operating without proper authority if you continue hauling.
Authority is revoked
FMCSA revokes your operating authority. You cannot legally haul freight. Getting authority reinstated requires re-filing, new insurance, and potentially the full 21-day waiting period again.
Additional consequences of a lapse
- Higher rates when you re-insure — Carriers see the lapse on your record and charge more. A single lapse can add 15-30% to your next premium.
- Loss of load opportunities — Brokers and shippers check your SAFER record. A revoked or lapsed authority means no loads.
- Potential fines — Operating without authority can result in fines up to $16,000 per violation per day
- Personal liability — If you cause an accident while uninsured, you're personally liable for ALL damages. No coverage means everything you own is at risk.
The #1 cause of lapses
Missed premium payments. Not deliberate cancellation — just a missed payment that triggers automatic cancellation. Set up autopay or set calendar reminders for every payment date. One missed payment can unravel your entire operation.
Beyond the Minimums: What You Actually Need
Federal minimums are the floor, not the ceiling. Here's what most successful carriers actually carry:
| Coverage | FMCSA Minimum | What We Recommend | Why |
|---|---|---|---|
| Auto Liability | $750,000 | $1,000,000 | Most brokers require $1M. Protects personal assets in serious accidents. |
| Cargo Insurance | Not required* | $100,000 | Needed to get loads from any broker. Covers you under Carmack Amendment liability. |
| Physical Damage | Not required | Actual cash value | Required by lenders. Even without a loan, can you replace an $80K truck out of pocket? |
| General Liability | Not required | $1,000,000 | Covers non-driving business activities. Some shippers and facilities require it. |
| Non-Trucking / Bobtail | Not required | $1,000,000 | If leased to a carrier, covers you when not on dispatch (driving home, personal use). |
* Cargo insurance is required for household goods movers. Not required by FMCSA for most other carriers, but practically mandatory to get loads.
Use our Coverage Wizard to see exactly what coverages apply to your specific operation.
Quick Reference
For-Hire General Freight Carrier
$750K auto liability (we recommend $1M) + MCS-90 + BMC-91 filing + BOC-3 + cargo insurance (practical necessity)
For-Hire Hazmat Carrier
$1M-$5M auto liability (depends on material) + MCS-90 + BMC-91 + BOC-3 + cargo insurance + pollution liability
Freight Broker
$75K surety bond (BMC-84) or trust fund (BMC-85) + BOC-3. If you also have carrier authority, add carrier requirements.
Private Carrier
Auto liability coverage meeting FMCSA minimums. No MCS-90 required. No BMC-91 filing needed for private carriers.
Need help with compliance?
We handle FMCSA insurance filings (BMC-91) automatically when we bind your policy. We can also connect you with BOC-3 services and walk you through every compliance requirement for your specific operation. The call is free, the advice is honest, and we'll tell you exactly what you need — no more, no less.