Commercial truck insurance after buying a trucking company
Insurance is the one step that can undo a purchase. If coverage lapses, the authority can go inactive. Here’s what you need, how much, and how to switch without a gap.
Federal minimums
FMCSA requires for-hire carriers to carry liability coverage, filed by the insurer with FMCSA. The minimum depends on what you haul (49 CFR Part 387):
- $750,000 for general freight in vehicles of 10,001 lbs or more.
- $1,000,000 for oil and certain hazardous materials.
- $5,000,000 for higher-risk hazardous materials.
- Lower minimums apply to some vehicles under 10,001 lbs.
What brokers and shippers expect
Most brokers ask for more than the federal minimum. Common requirements are $1,000,000 auto liability and $100,000 cargo coverage. Amazon Relay, for example, lists $1M auto liability, $100K cargo, and $1M/$2M general liability, plus workers’ compensation and employer’s liability. See Amazon Relay setup.
What insurers look at
- Authority age and how long the company has had continuous coverage.
- Loss runs and claims history.
- Inspections, out-of-service rates and crashes.
- Driver experience, age and records.
- Radius of operation and type of freight.
An aged company with clean history often quotes better than a brand-new authority, but results vary by insurer and driver.
How to switch without a lapse
- Get quotes during due diligence, using the company’s loss runs.
- Bind your policy to start on or before closing day.
- Have your insurer file proof of coverage with FMCSA.
- Only then should the seller cancel their policy.
- Check L&I a few days later to confirm your filing shows as active.
For the full post-closing checklist, see what happens after you buy.
Frequently asked questions
What is the minimum insurance for a trucking company?
For general freight in vehicles of 10,001 lbs or more, the federal minimum is $750,000 in liability. Most brokers require $1,000,000 auto liability and $100,000 cargo coverage.
Does an aged authority lower insurance costs?
Often it helps, because insurers weigh years in business and continuous coverage. Driver records, claims and freight type still matter.
What happens if insurance lapses?
The insurer notifies FMCSA, and the operating authority can be revoked if coverage isn’t restored. A lapse also stays in the insurance history that buyers and brokers check.
Next step
Find a company with continuous insurance history.
This guide is general information, not legal or tax advice. Have your own attorney review any purchase agreement.