Commercial Auto vs Trucking Insurance: What's the Difference?

Many new trucking companies and owner-operators assume that commercial auto insurance is all they need. While both policies cover business vehicles, trucking insurance is specifically designed for heavy-duty commercial operations and addresses the unique regulatory and liability risks faced by motor carriers.

What Is Commercial Auto Insurance?

Commercial auto insurance covers vehicles used for business purposes, such as company cars, vans, service trucks, and light-duty pickups. These policies cover liability, physical damage, and sometimes cargo, but they're designed for lower-risk operations and vehicles under 10,000 pounds gross vehicle weight.

What Is Trucking Insurance?

Trucking insurance is specialized coverage for motor carriers operating under FMCSA authority. It's designed for heavy commercial vehicles (typically over 10,000 pounds GVWR) that haul freight for compensation. Trucking policies address the higher liability limits, stricter regulatory requirements, and increased risks associated with long-haul and interstate commerce.

Key Differences

1. Regulatory Requirements

Commercial Auto: No FMCSA filing requirements. Policies are simpler and geared toward local business use.

Trucking Insurance: Must meet FMCSA minimum liability requirements (typically $750,000 to $1 million or more). Requires MCS-90 or BMC-91X endorsements filed with the FMCSA to maintain operating authority.

2. Liability Limits

Commercial Auto: Lower liability limits (often $300,000 to $500,000).

Trucking Insurance: Higher mandated limits based on cargo type. General freight requires $750,000 minimum, hazmat can require $5 million or more.

3. Coverage Scope

Commercial Auto: Limited to business vehicle operation. Typically doesn't cover interstate commerce or for-hire freight hauling.

Trucking Insurance: Covers interstate and intrastate freight hauling, includes specialized endorsements for cargo, non-owned trailers, and other trucking-specific risks.

4. Premium Costs

Commercial Auto: Lower premiums due to lower risk and liability exposure.

Trucking Insurance: Higher premiums reflecting the increased risks of heavy-duty operations, higher claim severity, and regulatory exposure.

Do You Need Trucking Insurance?

You need trucking insurance if:

• You operate vehicles over 10,000 pounds GVWR
• You haul freight for hire across state lines
• You have USDOT and MC numbers
• You're required to file proof of financial responsibility with the FMCSA
• Brokers or shippers require proof of trucking liability and cargo coverage

Common Mistakes to Avoid

• Using commercial auto for trucking operations: This leaves you underinsured and non-compliant
• Not understanding your policy limits: Many carriers assume they have $1 million in coverage when they actually have less
• Failing to file FMCSA endorsements: Without proper filings, your operating authority can be revoked

Final Thoughts

Commercial auto and trucking insurance are not interchangeable. If you're operating a trucking business under FMCSA authority, you need specialized trucking insurance that meets regulatory requirements and protects you from the high-severity risks of interstate freight hauling. Working with an insurance professional who understands the trucking industry ensures you have the right coverage.