Who Needs Insurance Coverage And How Much Coverage Is Needed To Drive A Commercial Motor Vehicle?
Before being able to operate a CMV, the FMCSA requires certain CMV’s to have insurance or bonds in place. Therefore, carriers that do not have insurance risk suspension or revocation of their operating authority. So, the question becomes “How do I know if I need coverage for my CMV”? According to the FMCSRs, four basic types of carriers are required to have insurance. These include: (1) for-hire carriers and freight forwarders transporting property in interstate or foreign commerce with vehicles with a gross vehicle weight rating (GVWR) of 10,001 pounds or more; (2) for-hire fleets that include only vehicles under 10,001 pounds GVWR; (3) for-hire carriers transporting passengers in interstate or foreign commerce; and (4) carriers and freight forwarders transporting hazardous materials, hazardous substances, or hazardous wastes in interstate, foreign, or intrastate commerce
Now that you know who needs insurance, the next question is “How much coverage do I need”? The amount of insurance needed depends on the type of carriage and the commodity being transported. Coverage ranges from $750,000 all the way up to $5 million. An example of a type of carriage and commodity that requires $750,000 is a for-hire vehicle with a GVWR of more than 10,0001 pounds carrying nonhazardous property. On the other hand, an example of a type of carriage and commodity that requires $5 million is a for-hire or private vehicle with a GVWR of less than 10,001 pounds carrying certain explosives, poisons, gases, or radioactive materials. The full list of how much coverage is needed can be found in the FMCSRs.