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The trucking industry is very dynamic. For instance, we have companies that truck their own goods.And then, we have a few that, aside from trucking their own goods, also accept trucking projects from other companies.
If you’re planning to get involved in the trucking industry, it’s important to know what business insurance to get. Today, let’s talk about commercial motor carrier insurance coverage.
Motor carrier insurance is a policy the Insurance Services Office (ISO) introduced in 1993. It covers private motor carriers, for-hire motor carriers, and private-and-for-hire motor carriers engaged in intrastate and interstate commerce.
It is a type of motor carrier policy that functions to cover the goods of the motor carrier’s customer. It has the following coverages:
A motor carrier policy offers coverage for private, for-hire, and private-and-for-hire motor carriers. On the other hand, a trucker’s policy can only insure for-hire motor carriers.
Motor carrier liability insurance policies usually offer commercial auto liability insurance and general liability insurance.
commercial auto liability insurance will help pay for the cost of damage if a motor carrier’s vehicle caused an accident and injured another driver and his passengers. Note that this policy won’t cover damages to the motor carrier’s vehicle.
On the other hand, general liability insurance for motor carriers will help to pay for any bodily injuries or property damage the motor carrier inflicted to its customers.
Auto carrier physical damage policy will cover the damage of the vehicles the motor carrier owns. There are two types; collision insurance and comprehensive insurance.
Collision insurance for goods carrier vehicles takes care of any physical damage to the motor carrier’s vehicle resulting from a collision with a vehicle or an object. Comprehensive insurance policy, on the other hand, accounts for vehicular damage not resulting from a collision (e.g. a natural event).
On the other hand, there’s no need to get a trailer interchange policy if a motor carrier uses their own trailers. This is because, aside from vehicles, owned trailers are also covered by the motor carrier’s auto physical damage policy.
Section 1 of the commercial motor carrier insurance coverage form specifically provides the types of vehicles the policyholder can cover. Numerical symbols are assigned for each covered vehicle for clarity purposes. Here’s a table as a comprehensive reference.
| Numerical Symbol | Vehicle Covered by Motor Carrier Insurance | Clarifying Comments |
| 61 | Any “auto” | |
| 62 | Owned “auto” only | Any vehicles you own and any vehicles you will own after the policy takes effect. Code 62 also includes trailers or any other attachments you don’t own but are equipped to covered vehicles. |
| 63 | Owned private passenger type “autos” only | Any private passenger type autos you own or will own after the policy takes effect. Examples of passenger-type autos are tour buses, trolleybuses, and light rails |
| 64 | Owned commercial “autos” only | Trucks, tractors , and their trailers. Also includes trailers you don’t own but attached to a power unit you own. |
| 65 | Owned “autos” subject to no-fault insurance coverage | Autos required by the state, where your motor carrier business is located, to have no-fault insurance coverage |
| 66 | Owned “autos” mandated by state law to be covered by uninsured motorist coverage | These are autos that are mandated by the state, where you’re motor business is located, to be always covered by uninsured motorist coverage. |
| 67 | Specifically described “autos” | Vehicles named as insured in item three “SCHEDULE OF COVERED AUTOS YOU OWN” on the motor carrier policy declaration form. |
| 68 | Hired “autos” only | Vehicles you lease, rent, hire, or, borrow except passenger type vehicles |
| 69 | “Trailers” in your possession | Trailers you do not own but you expressly agree to have liability in case of loss through an interchange agreement. |
| 70 | “Trailers” in the possession of others | Trailers you own but are currently being used by others through an interchange agreement |
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The FMCSA (Federal Motor Cargo and Safety Association) mandates carriers to have the minimum insurance coverage depending on the type of their business operations. Here’s a table that shows what kind of form a specific carrier needs, the type of insurance to purchase, and the amount of coverage the FMCSA requires.
| Type of Motor Carrier Business | Form to be Filed | Type of Insurance Policy Required | Minimum Amount of Coverage Required |
| Freight forwarder | BMC-91 or BMC-91X | BIPD insurance FCMSA – Public liability insurance having bodily injury coverage, environmental restoration coverage, and property damage coverage | $750,000 – $5 million depending on how hazardous the freight is
$300,000 for freight forwarders dealing with non-hazardous freight |
| Household Goods Motor Carrier or Freight Forwarder | BMC-34 or BMC-83 | Cargo insurance | $5,000 per vehicle coverage |
| Freight broker | BMC-84 or BMC-85 | Surety bond insurance or Trust Fund Agreement | $75,000 coverage |
| Motor Carriers Possessing Hazmat Safety Permit | MCS-90 | Liability policy (s) that can be added to motor carrier insurance through MCS 90 endorsement | Policy limits mandated by the Motor Carrier Act of 1980 |
CoverWallet helps you to find the cheapest quotes from the best motor carrier insurance companies in the United States. Additionally, CoverWallet has an application called MyCoverWallet where you can easily manage your carrier policy whenever and wherever you are.
Average cost: $84 per month
Nationwide covers motor carriers through its commercial auto policy, which is available for retail businesses, firms, contractors, auto repair businesses, wholesalers, and distributors. Nationwide even has optional coverages such as roadside assistance, rental reimbursement, expanded towing, and more.
Average cost: $135.16 per month
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Progressive specializes in working with owned operators, for-hire motor carriers, and private carriers. motor carrier insurance policy offered by Progressive are trailer interchange, general liability, and auto physical damage insurance. It has numerous discount options such as SmartHaul, Commercial Driver’s License Discount, and Business Experience Discount.
Average cost: $100.83 per month
The Hartford offers motor carriers general liability insurance and auto physical damage insurance.On the other hand, The Hartford’s auto physical damage insurance covers the motor carrier’s vehicles that were damaged on-site or on the road. Optional policies are multinational coverage, property in transit coverage, business income coverage, loss of use coverage, and more.
Average cost: $154.66 per month
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