Starting a trucking company means a lot of boxes to check at once: authority, equipment, drivers, lanes. Insurance is one of the first, and it's not optional. You can't legally haul freight for hire without it.
Here's exactly what you need to get your fleet rolling.
Before any insurance carrier will give you a policy, you need two things from the FMCSA: a USDOT number and an MC number.
You can apply at the FMCSA's registration portal at fmcsa.dot.gov. Once your MC number is issued, you can start the insurance process.
If one of your trucks causes an accident, Auto Liability pays for the other person's medical bills, vehicle repairs, and legal costs if they sue you. You can't legally operate without it.
How much coverage do you need? The federal minimum for general freight is $750,000, but most brokers and shippers won’t work with you unless you have at least $1,000,000.
Once you purchase coverage, your insurer files a form with the FMCSA confirming you're insured. That filing is required to activate your authority. No filing, no authority.
If the freight you're hauling gets damaged, stolen, or lost while it's in your hands, Cargo Insurance pays for it. Technically, federal law doesn’t require you to have it, but most freight brokers won't work with you unless you have it.
How much coverage do you need? $100,000 per load is the standard starting point. If you plan to haul high-value goods, you may need more.
Before you buy: Cargo policies have exclusions. Some don't cover temperature-sensitive freight, certain commodities, or specific causes of damage. Know what your policy covers before you take a load.
Physical Damage covers your trucks themselves: collision, theft, fire, vandalism. If you're financing your trucks, your lender will require it before you can take possession. And even if you own your trucks outright, going without it means any damage to your equipment comes out of your own pocket.
How much coverage do you need? Your coverage limit should reflect the actual value of your trucks. If you're not sure what your trucks are worth today, your broker can help you figure out the right number. Make sure to update it as your fleet changes, too. If you add a truck, sell or retire a truck, or make major modifications like adding a reefer unit or specialized body, let your insurance broker know.
This covers accidents that happen off the truck while your drivers are still on the job: slips and falls at a shipper's dock, property damage during loading and unloading, that kind of thing. Auto Liability doesn't cover those situations because the vehicle isn't involved.
More and more brokers require General Liability in their carrier agreements. If you don't have it, some shippers simply won't work with you.
How much coverage do you need? $1,000,000 limit per incident is the standard. Many contracts also require a $2,000,000 annual total.
If owner-operators run under your authority, most contracts require you to provide Occupational Accident coverage. It pays for a driver's medical bills and lost wages if they're hurt on the job. It’s similar to workers' comp, but built specifically for the trucking industry.
For owner-operators, Non-Trucking Liability (NTL) covers use of the truck for personal use, like driving home, running errands, or anything outside of an active load. Auto Liability only applies when the truck is working: driving to a pickup, hauling a load, or returning from a drop-off. So without Non-Trucking Liability, owner-operators are uninsured if they use the truck outside of work. (NTL is not common for company driver fleets, which typically don’t allow personal use of company trucks.)
New fleet insurance typically costs more than renewals. Insurance carriers don’t have a history of your fleet’s past performance to work from, so they price you based on the limited information they have.
What drives your rate:
For a single truck with Auto Liability, Cargo Insurance, and Physical Damage, most new operators pay somewhere between $10,000 and $20,000+ per year. But rates vary significantly based on your drivers, your equipment, and where you operate.
The FMCSA typically processes the insurance filing within a few days. Your authority becomes active once it's confirmed.
Buying the minimum and calling it done. Legal minimums are there to protect the public, not to protect your business. They make sure that if you cause an accident, the other person can get paid for damage and medical expenses.
Not listing all drivers. Every driver operating under your authority needs to be on the policy. If someone isn't listed and they're in an accident, you may not be covered. Reach out to your broker for help adding drivers to your policy.
Skipping cargo coverage to cut costs. One damaged load can cost more than a full year of cargo premiums.
Not shopping around. Rates vary significantly across carriers, especially for new fleets. Work with a broker like Cai who can get you competitive quotes from across their carrier network.
Getting your coverage right from the start sets the foundation for everything else. The requirements aren't complicated, but the details matter.
The Cai Insurance team is always happy to help you figure out what coverage makes sense for your fleet. Give us a call at (770) 765-0331 for a free, no-obligation quote.
What insurance do you need to start a trucking company? At minimum, you need Auto Liability to satisfy federal law and activate your authority. Most brokers will also require Cargo Insurance before they dispatch loads to you. And if you're financing your trucks, your lender will require Physical Damage coverage, too. General Liability is increasingly required by brokers and shippers as well.
How much does insurance cost for a new trucking company? For a single-truck operation with clean drivers and standard freight, expect to pay at least $10,000–$20,000+ per year for Auto Liability, Cargo, and Physical Damage. Rates will vary based on factors like your drivers' records, what you haul, and where you operate.
Can I get my authority and then get insurance? No. The FMCSA requires proof of insurance before your authority becomes active. Your insurer files a confirmation directly with the FMCSA, and your authority doesn't go live until that filing is processed.
Before starting Cai, our team started our own fleet. We know how important it is to get coverage fast, so you can get moving (and earning). Give us a call at (770) 765-0331 to get competitive quotes from across our carrier network.