What Trucking Companies Need to Know About Auto Liability Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 6
- 2 min read
Auto liability insurance is one of the most critical coverages for any trucking company. Whether you're an owner-operator or managing a fleet of trucks, understanding how this coverage works can protect your business from financial disaster. In this guide, we’ll break down what auto liability insurance is, why it’s required, and how to make sure your trucking business is properly covered.
What Is Auto Liability Insurance for Trucking Companies?
Auto liability insurance covers bodily injury and property damage that your truck may cause to others in an accident. It’s legally required for all commercial trucking operations in the United States and is often the first line of defense in protecting your business.
There are two main components:
Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if someone is injured.
Property Damage Liability: Covers the cost of damage to another person’s vehicle or property.
Why Is Auto Liability Insurance Required?
The Federal Motor Carrier Safety Administration (FMCSA) mandates minimum liability coverage for trucking companies operating across state lines. These requirements vary based on the type of freight being hauled:
$750,000 for general freight
$1,000,000 for oil transport
$5,000,000 for hazardous materials
Even if you operate locally, your state will have its own minimum requirements. Without proper coverage, you risk fines, license suspension, and being shut down.
Who Needs Auto Liability Insurance?
Owner-Operators: Whether leased to a carrier or operating under your own authority, you need liability coverage.
Fleet Owners: If you manage multiple trucks, each vehicle must be insured.
New Ventures: Starting a trucking company? You’ll need proof of insurance to get your operating authority.
What Does Auto Liability Insurance NOT Cover?
It’s important to know what this coverage doesn’t include:
Damage to your own truck (covered by physical damage insurance)
Cargo loss or damage (covered by cargo insurance)
Injuries to your drivers (covered by workers compensation or occupational accident insurance)
How Much Coverage Do You Need?
While the FMCSA sets minimums, many shippers and brokers require higher limits. A common recommendation is:
$1,000,000 in auto liability
$100,000 in cargo coverage
$1,000 deductible for physical damage
Higher limits can help you win better contracts and protect your business from large claims.
How to Choose the Right Policy
Here are a few tips:
Work with a specialized truck insurance agency like Wexford Insurance.
Bundle coverages to save money and simplify claims.
Review contracts with brokers and shippers to ensure compliance.
Update your policy as your fleet grows or your routes change.
Conclusion
Auto liability insurance isn’t just a legal requirement — it’s a vital part of protecting your trucking business. At Wexford Insurance, we specialize in helping trucking companies find the right coverage at competitive rates. Whether you're just starting out or scaling your fleet, we’re here to help.
