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Do You Understand Intrastate Trucking Insurance Requirements?

Whether you are the owner of a trucking fleet or an owner and operator, you have to ensure that your company has enough insurance. One of your trucks may need unexpected repairs, or a driver could incur an injury while unloading cargo. Your insurance should cover most scenarios that could arise. However, you need to make sure that your policy meets the intrastate trucking requirements.

How Much Insurance Do You Need?

One of your first concerns may be ensuring that you have enough coverage. Insurance companies usually base the policy on the weight of a truck and the kind of cargo it carries. A truck that weighs at least 10,000 pounds, for example, usually needs at least $750,000 worth of coverage. However, you typically need more coverage if a truck will carry hazardous substances, such as radioactive materials or compressed gas. In this situation, you need at least a $5 million policy.

If your vehicles weigh less than 10,000 pounds, you can generally have a smaller policy. You might need only $300,000 worth of insurance. However, even with a smaller truck, you still need a $5 million policy if you intend to haul hazardous materials.

If you regularly move household goods, you have to meet different intrastate trucking requirements. A vehicle under 10,000 pounds needs a $10,000 insurance policy, while a truck over this weight requires $20,000 worth of coverage.

Each state sets its own insurance guidelines, and these state requirements are sometimes lower than the amounts listed above.

What Proof of Insurance Is Necessary?

You will likely need to demonstrate that each of your vehicles has the appropriate amount of coverage. Your insurance company generally gives you a form explaining your policy. Before you receive this form, you might have a certificate of insurance. This document loses its validity after 60 days, so it is important to make sure that you receive the official form before the certificate expires.

Intrastate trucking requirements usually involve filing your insurance information with a regulatory organization in your state. However, this process can look different depending on where you live. Some states might require a filing for every type of vehicle you operate, while others may mandate this step for only certain vehicles. Additionally, some states do not require truck filings at all. Your insurance agent can help you understand your state’s guidelines so you follow all the regulations.

Intrastate Trucking Insurance Requirements

What Are the Insurance Requirements for Interstate Trucking?

As your business expands, it could become necessary for you to cross state lines. In this situation, you need interstate trucking insurance. The policy guidelines could be very different from intrastate trucking requirements. When your vehicles stay in one state, meeting your state’s regulations is sufficient. However, you have to follow the guidelines laid out by the Federal Motor Carrier Safety Administration as soon as a truck crosses into a different state. You typically have to demonstrate that your insurance policies meet both sets of guidelines.

Additionally, your state may require less coverage than the FMCSA. In this situation, you need to make sure that your policies meet the minimum for the federal guidelines. You could also need additional forms of coverage, such as the following:

  • Cargo coverage
  • Liability coverage
  • Physical damage coverage

You usually need these for each vehicle in your fleet.

What Else Should You Know About Trucking Insurance?

Insurance can often be complicated, so there are a few things you should consider as you review your policy. While you only need to meet minimum coverage levels, you may want to find a policy that offers additional coverage. This allows you to be prepared for any scenario that unfolds on the road.

Additionally, you should be knowledgeable about the intrastate trucking requirements where you live. Some states have additional mandates. You may, for example, have to meet federal safety regulations. This can affect the kind of insurance policy you need. Also, your state may require your company to undergo insurance compliance reviews on a regular basis. You might also need to register your vehicles with a certain agency. Knowing these additional requirements up-front can help ensure that you experience as few roadblocks as possible.

Do you need to review your insurance or add additional coverage to your policy? Contact Rev Insurance to make sure that your policy meets all of the intrastate trucking requirements where you live.