Before a new interstate for-hire authority can become active, an insurer has to file proof of liability coverage with the FMCSA; for general freight the federal minimum is $750,000, and many brokers and shippers require $1,000,000. Most new carriers also need cargo coverage, and physical damage if the truck is financed. California-based operations have their own requirements through the DMV and CHP. New authorities cost more to insure because there’s no loss history, so a clean, accurate application and experienced drivers matter.
The coverage a new authority needs
- Auto liabilityInjury and damage you cause to others. Federal minimum for interstate for-hire general freight is $750,000, and higher for many hazardous materials. Many brokers and shippers require $1,000,000.
- Motor truck cargoLoss of or damage to the freight you haul. Most brokers won’t tender loads without it.
- Physical damageCollision and comprehensive on your tractor and trailer. A lender will require it on a financed truck.
- Also commonGeneral liability, trailer interchange if you pull others’ trailers, and occupational accident for owner-operators without workers’ comp.
Filings that have to be in place
- Federal proof of insurance. Your insurer files it with the FMCSA electronically before your authority can be activated.
- MCS-90 endorsement. Federal public-liability endorsement attached to interstate for-hire auto liability policies.
- Process agent (BOC-3). Also required before the FMCSA activates operating authority.
- California requirements. California-based carriers also deal with the DMV Motor Carrier Permit, which requires insurance on file, and a CA number from the CHP.
If a policy cancels, the insurer notifies the FMCSA, and the authority can be revoked if replacement coverage isn’t filed in time. Coverage gaps are expensive for a new carrier.
What underwriters look at
- Driver experience: years with a CDL and in the type of equipment you’ll run.
- Driving records for every driver, including owners.
- Radius and states of operation.
- Commodities: what you haul changes both liability and cargo pricing.
- Equipment: year, value and whether it’s financed.
- Safety practices: ELD, cameras and maintenance records.
Mistakes that cost new carriers
- Understating radius or commodities to get a lower quote, which can create coverage problems at claim time.
- Letting unlisted drivers operate the truck.
- Missing a payment and triggering a cancellation notice to the FMCSA.
- Buying the minimum when the brokers you want to work with require more.
See how I place commercial trucking insurance.
Common questions
How does a new trucking company get insurance?
Through carriers and specialty markets that write new authorities, usually placed by a broker. A new trucking company needs auto liability with the federal filing made before the authority can activate, and most also need cargo and physical damage coverage. Driver experience and records matter most, since the company has no history.
How much liability insurance does a new authority need?
For interstate for-hire carriers of general freight, the federal minimum is $750,000, and many hazardous materials require more. Many brokers and shippers require $1,000,000 regardless.
Why is insurance for a new authority expensive?
Insurers have no loss history for the business, so they price on driver experience, driving records, equipment, radius and commodities. Fewer markets write new authorities, which is why shopping widely matters.
Can I start hauling as soon as I buy a policy?
Not under your own interstate authority until the insurer’s filing and your process agent designation are in place and the FMCSA activates the authority.
What if I’m leased on to another carrier?
When you run under another carrier’s authority, their liability generally applies under dispatch, and you typically carry non-trucking liability, physical damage and occupational accident instead.
Sources
- FMCSA: Insurance filing requirements
- eCFR 49 CFR 387.9: Financial responsibility, minimum levels
- California DMV: Motor Carrier Permit
General information as of September 2026, not legal advice. Rules, programs and carrier appetite change; confirm current requirements before relying on them. Coverage depends on the terms, conditions and exclusions of the policy actually issued.