Texas trucking insurance facts

Under 49 CFR 387.9, the federal minimum auto liability for for-hire motor carriers of non-hazardous property in vehicles of 10,001 pounds or more is $750,000; it is $1,000,000 for oil and many hazardous materials and $5,000,000 for certain bulk hazardous materials.

Source: 49 CFR 387.9 (eCFR). Read the explainer

Federal cargo insurance security under 49 CFR 387.303(c) applies to household goods carriers; for general freight, cargo limits are set by broker and shipper contracts, not by an FMCSA filing.

Source: 49 CFR 387.303. Read the explainer

The MCS-90 endorsement guarantees payment to the public up to the federal minimum, and the insurer can seek reimbursement from the motor carrier for any payment it would not otherwise have owed under the policy.

Source: IRMI, MCS-90 endorsement. Read the explainer

Under 49 CFR 387.313, an insurer cancelling a motor carrier’s federal insurance filing must file a cancellation notice (Form BMC-35), and the filing stays in effect until 30 days after FMCSA receives it unless a replacement filing is accepted.

Source: 49 CFR 387.313 (eCFR). Read the explainer

Under 49 CFR 365.115, an application for interstate operating authority is published in the FMCSA Register and is open to protest for 10 days; the grant takes effect only once required insurance and process agent filings are on file.

Source: 49 CFR 365.115 (eCFR). Read the explainer

Under 49 CFR 390.19, every motor carrier with a USDOT number must update its MCS-150 every 24 months on a schedule set by the last two digits of the USDOT number; failing to update can lead to deactivation of the number.

Source: 49 CFR 390.19. Read the explainer

Texas intrastate for-hire carriers registered with TxDMV must carry at least $500,000 of auto liability for vehicles over 26,000 pounds, $1,000,000 when hauling oil or certain hazardous materials, and $5,000,000 for certain bulk hazardous materials.

Source: TxDMV, TxDMV number requirements. Read the explainer

In Texas, proof of intrastate motor carrier liability insurance is filed with TxDMV on Form E, and only the insurer can file it; cancellations are filed on Form K.

Source: TxDMV, TxDMV number. Read the explainer

Texas Insurance Code chapter 551 requires an admitted insurer that will not renew a covered commercial policy to give the policyholder written notice at least 60 days before the policy expires; it does not apply to surplus lines insurers.

Source: Tex. Ins. Code ch. 551. Read the explainer

Under Texas Insurance Code Sections 542.102 and 542.103, an insurer must give a policyholder, within 30 days of a written request, a list of claims charged against the policy and the payments made on each.

Source: Tex. Ins. Code ch. 542, subch. C. Read the explainer

Under the Carmack Amendment, 49 U.S.C. 14706, an interstate motor carrier is liable for the actual loss or injury to property it transports, and a carrier may not give a shipper less than 9 months to file a claim or less than 2 years to sue after a claim is denied.

Source: 49 U.S.C. 14706. Read the explainer

FMCSA’s published national average out-of-service rates, based on 24 months of roadside inspections as of September 25, 2026, are 22.26% for vehicles, 6.67% for drivers and 4.44% for hazardous materials.

Source: FMCSA SAFER Company Snapshot. Read the explainer

Under 49 CFR 385.13, a motor carrier with a final Unsatisfactory safety rating is prohibited from operating commercial motor vehicles beginning on the 46th day after the rating notice for passenger and placarded hazmat carriers and the 61st day for other carriers.

Source: 49 CFR 385.13. Read the explainer

FMCSA’s Safety Measurement System ranks carriers in seven safety categories (BASICs) using two years of inspection and crash data, updated monthly.

Source: FMCSA CSA, The Safety Measurement System. Read the explainer

Under 49 CFR 376.12, a lease of equipment between an owner-operator and an authorized motor carrier must be in writing, give the carrier exclusive possession and control during the lease, and state who is responsible for insurance and any amounts charged back to the owner.

Source: 49 CFR 376.12. Read the explainer

Texas Labor Code Section 406.002 makes workers’ compensation coverage elective for most private employers, and under Section 406.033 an employer without coverage loses common-law defenses such as contributory negligence in an employee injury suit.

Source: Texas Labor Code ch. 406. Read the explainer

Texas Transportation Code Section 643.106 requires certain TxDMV-registered for-hire motor carriers to carry workers’ compensation or an approved accidental insurance policy covering their employees, with minimum benefits set in 43 TAC 218.16.

Source: Tex. Transp. Code ch. 643. Read the explainer

Texas requires licensed tow trucks to carry per-truck liability insurance set by permit type under Occupations Code ch. 2308 and 16 TAC 86.400: incident management towing needs $500,000 of liability and $50,000 of cargo coverage, and private property towing needs $300,000 of liability and $50,000 of cargo.

Source: 16 TAC 86.400. Read the explainer

In Texas, hauling oil and gas waste for hire requires a Railroad Commission waste hauler permit under 16 TAC 4.193, with each permitted vehicle on an approved list and marked with the permit number.

Source: 16 TAC 4.193. Read the explainer

The Uniform Intermodal Interchange and Facilities Access Agreement (UIIA) requires participating motor carriers to carry at least $1,000,000 of auto liability and $1,000,000 of general liability, with equipment providers covered as additional insureds.

Source: IANA, UIIA insurance requirements. Read the explainer

Since 2021, Texas Civil Practice and Remedies Code chapter 72 lets a defendant in a commercial motor vehicle injury suit ask for a bifurcated trial, in which liability and compensatory damages are decided first and exemplary damages in a separate phase.

Source: Tex. Civ. Prac. & Rem. Code ch. 72. Read the explainer