You get your authority, buy your truck, and think you're ready to haul freight. Then you start calling for insurance quotes and realize the requirements are more complicated than you expected.
Federal minimums. State-specific rules. Different coverage types depending on what you haul and where you operate. Costs that vary by 242% depending on your home state.
Here's everything you need to know about truck insurance requirements by state in 2026, what coverage you actually need, and what you'll pay.
Federal Minimum Insurance Requirements
Before we get into state-specific requirements, understand this: If you have a USDOT or MC number, federal requirements apply first. State requirements layer on top of federal rules.
The Federal Motor Carrier Safety Administration (FMCSA) sets minimum insurance levels under 49 CFR Part 387. These minimums haven't changed since the 1980s when Congress established them.
Federal Minimum Liability Coverage
Standard freight (non-hazmat):
- Vehicles over 10,001 lbs GVW: $750,000 minimum
- Motor vehicles or large equipment: $1,000,000 minimum
Hazardous materials:
- $5,000,000 minimum (regardless of quantity)
Passenger transport (for-hire):
- 16+ passengers: $5,000,000 minimum
- 15 or fewer passengers: $1,500,000 minimum
Cargo insurance (FMCSA minimum for brokers/carriers):
- $5,000 per vehicle
- $10,000 per occurrence
Most owner operators fall into the $750,000 or $1,000,000 category. If you haul general freight in a dry van or flatbed, you need $750,000 minimum. If you haul cars, heavy equipment, or machinery, you need $1,000,000.
Important: These are MINIMUMS. Many brokers and shippers won't work with you unless you carry $1,000,000 liability regardless of what you haul. And if you're leased to a carrier, they'll dictate your coverage requirements (often $1M or higher).
Do State Requirements Override Federal Requirements?
No. Federal requirements are the floor, not the ceiling.
If federal rules say $750,000 and your state says $500,000, you must carry $750,000. If federal rules say $750,000 and your state says $1,000,000, you must carry $1,000,000.
Most states don't have specific commercial truck insurance requirements beyond federal minimums for interstate commerce. But some do, especially for intrastate-only operations.
State-Specific Requirements (Key States)
California
California requires higher intrastate minimums than federal rules.
Intrastate carriers (California only):
- Vehicles 10,000 lbs or more: $750,000 minimum
- Household goods movers: $750,000-$1,000,000 depending on vehicle size
Cargo insurance (intrastate household goods):
- $20,000 per vehicle
- $20,000 per catastrophe
California Intrastate ID (#T number): If your truck doesn't cross state lines and is over 10,000 lbs GVW, you need a California Intrastate ID number. This triggers California-specific insurance requirements separate from your federal authority.
Average insurance cost in California: $15,000-$22,000 per year for new operators. Established operators with clean records pay $8,000-$12,000.
Texas
Texas has its own intrastate trucking authority system and insurance requirements.
TXDMV number requirements: If you operate only within Texas and your truck weighs more than 10,000 lbs GVW, you need a TXDMV number and must maintain Texas-specific liability insurance.
Cargo insurance (intrastate):
- $5,000 per vehicle
- $10,000 per catastrophe
Physical damage and UM/UIM: Texas Department of Insurance requires commercial truck policies to include:
- Uninsured Motorists (UM) coverage
- Underinsured Motorists (UIM) coverage
- Physical damage coverage options must be offered
Average insurance cost in Texas: $12,000-$18,000 per year for new operators.
Florida
Florida largely follows federal requirements for commercial trucks, but with some additional state mandates.
Minimum liability: Commercial vehicles follow FMCSA requirements ($750,000+ depending on cargo type).
No-Fault PIP: Florida is a no-fault state, but commercial vehicles over 26,000 lbs are typically exempt from PIP requirements (unlike personal vehicles).
Average insurance cost in Florida: $15,522 per year (state average for owner operators).
Florida has high insurance costs due to high accident rates, dense traffic in major cities (Miami, Tampa, Orlando), and frequent litigation.
New York
New York has stricter insurance requirements than most states.
Minimum liability for commercial autos:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $10,000 for property damage (This is 25/50/10 in insurance shorthand)
Basic PIP (Personal Injury Protection):
- Minimum $50,000 required on all commercial auto policies
Uninsured Motorist (UM) coverage:
- Required on all commercial policies
For common and contract carriers:
- Liability minimum: $100,000 per person, $300,000 per accident, $50,000 property damage (100/300/50)
Hazmat carriers:
- $1,000,000 or $5,000,000 CSL (Combined Single Limit) depending on hazmat type
Average insurance cost in New York: $7,996 per year ($666/month) for $1M liability.
New York is expensive due to high cost of living, dense population areas, and stringent state insurance regulations.
Other Notable States
Mississippi: Lowest insurance costs in the nation. Owner operators in Mississippi pay the lowest commercial trucking insurance rates nationally.
Wyoming: $4,927 average annual premium for local operations.
Maine: $3,298 per year ($275/month average).
Wisconsin: $6,714 average for local operations.
States with lower populations, less traffic density, and fewer accidents generally have lower insurance costs.
Types of Insurance Coverage Owner Operators Need
Federal and state requirements cover liability insurance. But there are other coverage types you need to operate safely and profitably.
1. Primary Liability Insurance (Required)
This is your BIPD (Bodily Injury and Property Damage) coverage. It pays for damage you cause to other people and property while operating your truck for work.
Coverage amounts:
- $750,000 minimum (federal)
- $1,000,000 recommended (most brokers require this)
What it covers:
- Other driver's medical bills and vehicle damage if you cause an accident
- Legal defense if you're sued
- Property damage (buildings, guardrails, cargo)
What it doesn't cover:
- Damage to your own truck
- Your own medical bills
- Cargo you're hauling (that's cargo insurance)
Cost: $8,000-$22,000 per year depending on state, experience, and driving record.
2. Physical Damage Insurance (Required by Lenders)
Physical damage covers repairs or replacement of your truck if it's damaged in an accident, fire, theft, or vandalism.
Two parts:
- Collision: Covers accidents (hitting another vehicle, object, or rolling over)
- Comprehensive: Covers non-collision events (fire, theft, vandalism, hail, hitting a deer)
Why you need it: If you financed your truck, your lender requires physical damage coverage. If you own your truck outright, it's optional but recommended (unless your truck is worth under $30,000 and you can afford to replace it).
Coverage limits: Based on actual cash value (ACV) of your truck, minus depreciation. A $150,000 truck might have $120,000 ACV after 2 years.
Deductibles:
- Collision: $1,000-$5,000 typical
- Comprehensive: $500-$2,500 typical
Higher deductibles lower your premium. If your truck is worth $80,000, a $2,500 deductible saves you $1,500-$2,000 per year vs a $1,000 deductible.
Cost: $3,000-$8,000 per year depending on truck value and deductibles.
3. Cargo Insurance (Often Required by Brokers)
Cargo insurance covers the value of the freight you're hauling if it's damaged, lost, or stolen while in your care.
Coverage amounts:
- $100,000 typical for general freight
- $250,000+ for high-value cargo
What it covers:
- Theft of cargo
- Damage from accidents
- Refrigeration breakdown (for reefer loads)
- Loading/unloading damage
What it doesn't cover:
- Normal wear and tear
- Improperly packaged cargo (unless you packaged it)
- Delay claims (you're late delivering)
Why you need it: Most brokers require proof of cargo insurance before they'll book you a load. Even if it's not required, one cargo claim without insurance can cost you $50,000-$100,000 out of pocket.
Cost: $600-$1,500 per year for $100,000 coverage.
4. Bobtail Insurance (For Leased Owner Operators)
Bobtail insurance provides liability coverage when you're driving your truck without a trailer attached and NOT under dispatch.
When it applies:
- Driving home from delivering a load (no trailer)
- Personal errands in your truck (no trailer)
- Repositioning to pick up a trailer (not under dispatch)
Why you need it: Your primary liability insurance only covers you while under dispatch. If you're in an accident while bobtailing for personal reasons, you have no coverage without bobtail insurance.
Important distinction: Bobtail = liability coverage without a trailer. It does NOT cover damage to your truck (that's physical damage).
Cost: $300-$800 per year.
5. Non-Trucking Liability (NTL)
Non-Trucking Liability covers you when using your truck for personal purposes (whether or not a trailer is attached) and you're NOT under dispatch.
When it applies:
- Personal errands with or without trailer
- Driving home after a load (with empty trailer)
- Any non-work use
Bobtail vs NTL:
- Bobtail: Only covers driving without a trailer
- NTL: Covers personal use with OR without a trailer
Most motor carriers require NTL if you're leased to them. It protects them from liability when you're not working.
Cost: $400-$1,000 per year.
6. Occupational Accident Insurance (Recommended)
Owner operators are not employees, so you don't get workers' compensation. Occupational accident insurance fills that gap.
What it covers:
- Medical bills if you're injured in an on-the-job accident
- Disability payments if you can't work
- Accidental death benefit
Why you need it: If you're in an accident and can't work for 6 months, how do you pay your bills? Occupational accident insurance provides income replacement.
Cost: $300-$600 per year for basic coverage.
7. General Liability Insurance (Optional but Recommended)
General liability covers non-driving accidents. Examples:
- You slip and fall while delivering and injure yourself
- You damage a customer's property while on their premises
- A customer sues you for something unrelated to driving
Cost: $500-$1,000 per year.
How Much Does Truck Insurance Actually Cost?
Industry averages don't tell the full story. Your cost depends on your location, experience, equipment, driving record, and coverage choices.
Average Costs by Experience Level
New operators (first year):
- Under own authority: $14,000-$22,000 per year ($1,167-$1,833/month)
- Leased to a carrier: $3,600-$5,000 per year ($300-$400/month)
Established operators (2+ years, clean record):
- Under own authority: $8,000-$15,000 per year ($667-$1,250/month)
- Leased to a carrier: $3,600-$5,000 per year (same as new)
Why new operators pay more: Insurers view new MC numbers as high-risk. No claims history, no safety score, no track record. After 2 years with clean inspections and no accidents, rates drop 30-50%.
One TruckersReport forum member shared: "My insurance dropped from $13k to $8,500 after having 2 good inspections and no claims."
Cost by Coverage Type
Minimum viable setup (leased to carrier):
- Physical damage: $3,000-$6,000/year
- Bobtail/NTL: $400-$800/year
- Total: $3,400-$6,800/year
Full coverage (own authority):
- Primary liability ($1M): $8,000-$18,000/year
- Physical damage: $3,000-$8,000/year
- Cargo insurance: $800-$1,500/year
- Occupational accident: $400-$600/year
- Total: $12,200-$28,100/year
State Cost Variations
Insurance premiums vary significantly by state due to accident rates, legal environment, and cost of living.
Lowest-cost states:
- Mississippi: Lowest in nation
- Maine: $3,298/year average
- Wyoming: $4,927/year average
- Wisconsin: $6,714/year average
Highest-cost states:
- New York: $7,996/year ($666/month)
- California: $15,000-$22,000/year for new operators
- Florida: $15,522/year average
- Michigan: High due to no-fault insurance system
Rate difference: The difference between the cheapest and most expensive states is 242%.
What Affects Your Rate
Factors that increase premiums:
- New MC number (first 2 years)
- New CDL (under 2 years experience)
- Age under 25
- Poor credit score
- Traffic violations or accidents
- Low CSA safety score
- High-value cargo (electronics, pharmaceuticals)
- Operating radius (longer radius = higher rates)
- Urban operating areas (New York City, Los Angeles)
Factors that decrease premiums:
- Clean driving record (3+ years)
- Good credit score
- Safety certifications (SmartDrive, road safety training)
- Dash cams installed
- Established authority (2+ years)
- Strong CSA score
- Higher deductibles
- Limited operating radius
One operator on TruckersReport noted that their agent said insurance costs are "more based on driving records, credit history and such" rather than solely on new MC number penalties.
How to Get Lower Insurance Rates
1. Shop Around (Seriously)
Don't take the first quote. Get quotes from at least 5 insurers.
Common insurers for owner operators:
- Progressive Commercial
- Great West Casualty
- Sentry Insurance
- CoverWhale
- National Interstate
Rates can vary by $5,000-$10,000 per year for the same coverage. One operator's $18,000 quote might be another insurer's $11,000 offer.
2. Improve Your Credit Score
Insurance companies use credit scores to predict risk. A 680+ credit score can save you 15-30% on premiums compared to a 580 score.
Pay bills on time, reduce credit card balances, and dispute errors on your credit report.
3. Install Dash Cams
Forward-facing dash cams can reduce your liability premium by 5-10%. They provide evidence in accidents and encourage safer driving.
Some insurers (like Lytx or SmartDrive) offer programs where installing their dash cam system reduces your rate.
4. Take Safety Courses
Some insurers offer discounts for completing defensive driving courses or safety certifications. Ask your agent what qualifies.
5. Increase Your Deductibles
Raising your physical damage deductible from $1,000 to $2,500 can save $1,500-$2,000 per year. Just make sure you have the cash available if you need to file a claim.
6. Maintain a Clean Driving Record
Every traffic violation or at-fault accident increases your premium. One speeding ticket can cost you $500-$1,000 extra per year for 3 years.
Drive defensively, follow HOS rules, and avoid violations.
7. Build Your CSA Score
Your Compliance, Safety, Accountability (CSA) score affects your insurance rate. Clean inspections and no violations keep your score low (which is good).
Get your truck inspected regularly to catch issues before DOT does.
8. Consider Leasing to a Carrier (First Year)
If you're a new operator, leasing to a carrier for your first year lets you operate under their insurance (cheaper) while you build experience and a safety record.
After 1-2 years, when you get your own authority, your rates will be lower because you have a clean track record.
Do You Need an Insurance Agent or Broker?
Yes. Commercial truck insurance is complex, and working with an agent who specializes in trucking insurance is worth it.
What a good agent does:
- Shops multiple carriers for the best rate
- Explains coverage options and what you actually need
- Handles filing certificates with brokers and shippers
- Helps with claims
- Updates your coverage as your business grows
Cost: Agents are paid by commission from the insurer, not by you. There's no reason not to use one.
Common Insurance Mistakes Owner Operators Make
1. Only Buying Minimum Required Coverage
$750,000 liability meets FMCSA requirements, but most brokers require $1,000,000. You'll spend time explaining why you only have $750k or you won't get loads.
Buy $1M liability from the start.
2. Skipping Cargo Insurance
One cargo claim can bankrupt you. A $75,000 load of electronics gets stolen, and you're personally liable without cargo insurance.
Budget $100-$150/month for cargo coverage. It's worth it.
3. Not Understanding Bobtail vs NTL
If you're leased to a carrier and driving home after a load without a trailer, you need bobtail insurance. If you're taking your truck (with or without trailer) to run personal errands, you need NTL.
Many operators buy one but not the other and end up with coverage gaps.
4. Letting Coverage Lapse
Miss a payment and your insurance cancels. The FMCSA gets notified, and your authority is suspended. You can't book loads until you get insurance reinstated and file a new certificate.
Set up autopay. Don't let this happen.
5. Not Updating Your Agent When Things Change
Added a second truck? Changed your operating radius? Started hauling hazmat? Your coverage needs change, and you need to notify your agent immediately.
Operating without proper coverage is the same as operating uninsured.
2026 Insurance Updates to Know
Broker surety bond increase (effective January 16, 2026): Freight brokers must now have a $75,000 surety bond or trust fund (up from $75,000). This doesn't directly affect owner operators, but it may change how brokers operate and which brokers stay in business.
Clearinghouse CDL downgrade (effective November 18, 2024): If you have a drug/alcohol violation in the Clearinghouse and don't complete return-to-duty, your CDL gets downgraded. This makes you uninsurable for commercial work.
Potential federal minimum increase: FMCSA minimums haven't changed since the 1980s. There's ongoing discussion about raising minimums to $1,000,000 or higher, but no final rule yet. Watch for 2027-2028 updates.
Oral fluid drug testing approval: Approved December 2024, but won't affect insurance directly. Mention here for context if needed elsewhere in blog.
How FF Dispatch Helps Owner Operators With Compliance
Insurance is required before you can haul freight, but managing broker requirements, certificate filings, and coverage updates takes time.
How we help:
- We verify insurance before booking loads
- We handle certificate requests from brokers
- We work with carriers who understand O/O insurance setups
- No hidden fees: 6% of gross revenue, no surprises
We don't sell insurance (work with your agent for that), but we make sure you're compliant and ready to haul loads without administrative headaches.
Contact: (302) 608-0609 or gia@dispatchff.com No long-term contracts - month-to-month service Average rates: $2.40-$2.80/mile
If you're running your own authority and need dispatch support that understands insurance compliance, we're here.
Bottom Line
Truck insurance requirements vary by state, but here's what applies to most owner operators:
Federal minimums:
- $750,000 liability (general freight)
- $1,000,000 liability (vehicles or heavy equipment)
- $5,000,000 liability (hazmat)
Recommended coverage:
- $1,000,000 primary liability (most brokers require this)
- Physical damage (required by lender)
- Cargo insurance ($100,000 minimum)
- Bobtail or NTL (if leased to a carrier)
- Occupational accident insurance (income protection)
Expected costs:
- New operators under own authority: $14,000-$22,000/year
- Established operators: $8,000-$15,000/year
- Leased operators: $3,600-$6,800/year
State-specific rules:
- California, Texas, New York have additional requirements
- Some states require higher intrastate minimums
- Costs vary 242% between cheapest and most expensive states
Get multiple quotes, work with a trucking insurance agent, maintain a clean driving record, and your rates will drop 30-50% after your first 2 years.
Insurance is expensive, especially when you're new. But it's non-negotiable. Budget for it, shop smart, and don't let coverage lapse.
Sources:
- FMCSA Insurance Filing Requirements
- FMCSA Minimum Levels of Financial Responsibility - 49 CFR Part 387
- FMCSA Insurance Requirements Guide - Progressive Commercial
- Trucking & FMCSA Insurance Requirements 2026 - FreightWaves
- Commercial Truck Insurance Rates by State - CoverWallet
- Average Commercial Truck Insurance Cost 2026 - MoneyGeek
- Commercial Truck Insurance Costs Across States - DAT
- Owner Operator Insurance Costs - Insureon
- State Regulations for Truck Insurance - AIG
- Commercial Trucking Insurance by State - Progressive
- Owner Operator Insurance Types - Bobtail Insurance
- Owner Operator Insurance Requirements - altLINE
- First Year MC and Insurance Costs - TruckersReport Forum
- Truck Insurance for New Owner Operators - TruckersReport Forum