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  • Simmy

What auto insurance is required for transportation businesses?

It's easy for Owner Operators (O/Os) & Small Trucking/Passenger Transportation Companies to get lost in the nuisances of insurance requirements. That's where we come in!

Abiding by government regulations is important for your business and everyday patrons of our Highway System.

The following information is a general guideline as to the type of commercial auto insurance required with vehicle usage; speak with a trusted insurance adviser in order to confirm that you are protected.

Motor Carriers of Property

Motor Carriers of Property include For-Hire Carriers, or businesses transporting, for compensation, the goods or property of another, as well as Private Carriers. The following are insurance limit requirements for transporting these types of Materials:

Nonhazardous with Small Vehicles (<10,001 lbs)











For more information on insurance requirements, take a look at US DOT's minimum levels of financial responsibility required for each type of motor carrier.

Motor Carriers of Passengers

For-Hire Motor Carriers of Passengers are classified as businesses that offer interstate transportation to passengers for a commercial purpose. These businesses are available to the public and compensated for the transportation of passengers. ​Examples of these vehicles include Motorcoaches, Limousines, Passenger Vans, & Mini-Busses. The following are insurance limit requirements for these types of businesses:

16 or more Passengers (including driver)



<16 Passengers (including driver)


There are passenger businesses that are exempt from these regulations. For more information on insurance requirements for Passenger Transportation Companies, take a look at US DOT's Licensing & Insurance Requirements For-Hire Motor Carriers of Passengers.


Cargo insurance protects against property damage to the goods hauled in your trailer/truck. While it’s not required by the Federal Motor Carrier Safety Administration (FMCSA), cargo insurance is required by suppliers O/Os work with.

The typical limit for cargo insurance is $100,000 but this amount can change with the type of cargo you haul.


The United States Department of Transportation (DOT), founded in 1966, has the mission to serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future. The FMCSA was established as a separate administration within the DOT with the mission to reduce crashes, injuries and fatalities involving large trucks and buses.

Fenix Risk Management is an independent insurance agency proudly serving families & businesses in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Florida.

Simmy is an adviser at Fenix Risk Management.

Note: the opinions expressed in this blog are that of the author, not of any other individual or organization referenced.

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