What Primary Auto Liability Insurance covers
- Bodily injury you cause to other drivers, passengers, or pedestrians in an at-fault accident
- Property damage to other vehicles, guardrails, buildings, or anything else you hit
- Legal defense costs if you're sued after a covered accident, including attorney fees
- Settlements and judgments up to your policy limit, typically $750,000 or $1 million
- Federally filed financial responsibility under your MC number (the MCS-90 endorsement)
- Medical payments for injured third parties on most policies, up to a sub-limit
What it costs
Primary Auto Liability Insurance typically runs $8,000–$20,000+ per year for new authority owner operators.
Driving record, years in operation, radius of operation, and commodities all move the premium. New authority typically costs more than established carriers.
See the full pricing breakdown →
Who needs Primary Auto Liability Insurance
If you run under your own MC number, primary auto liability isn't optional. FMCSA won't activate your authority without a Form MCS-90 or BMC-91 filing from a licensed insurer. Own authority operators must carry at least $750,000 for general freight, $1 million for most hazmat and auto-haulers, and $5 million for certain bulk hazardous materials. Leased-on drivers usually don't buy this, the motor carrier they pull for provides primary coverage while under dispatch. If that's you, see leased-on operators for what you actually need to carry.
Common exclusions
- Most policies exclude damage to your own truck and trailer, that's what physical damage covers
- Typical exclusions include damage to the freight you're hauling, that requires motor truck cargo
- Most policies exclude injury to your own employees or drivers; workers' compensation or occupational accident coverage handles that
- Typical exclusions include intentional acts, hauling outside your filed radius, or operating without a valid CDL
- Most policies exclude personal, non-business use if you're leased on, that needs non-trucking liability
- Specific exclusions vary by carrier; always read your declarations page before assuming a loss is covered
Exclusions vary by carrier. Review the declarations and the exclusions schedule before you bind.
Related guides
Frequently asked questions
What are the FMCSA minimum liability limits for trucks?
$750,000 for general freight, $1,000,000 for most hazardous materials and auto haulers, and $5,000,000 for tank trucks hauling certain bulk hazmat. These minimums haven't changed since the 1980s, but most brokers and shippers require $1,000,000 regardless of what you haul.
Why is primary auto liability so expensive my first year?
New authority is the single biggest rate driver. Underwriters have no loss history on your MC number, so they price for the worst case. After 12 to 24 months of clean operation, you typically see 15 to 30 percent come off the renewal, assuming no claims and a clean MVR.
What is the MCS-90 endorsement and do I need it?
The MCS-90 is a federal endorsement attached to your liability policy that guarantees the public will be paid for a covered loss, even if your insurer wouldn't otherwise pay. It's required by FMCSA for interstate authority. Your insurer files the matching Form BMC-91 with FMCSA to prove you're insured to the federal minimum.
Does primary liability cover my passenger or another driver in my truck?
Primary auto liability only pays third parties, people and property outside your truck. Your own injuries, your team driver's injuries, or a passenger who works for your company fall under workers' compensation or occupational accident coverage, not this policy. A non-employee passenger may have coverage through medical payments, but the limits are usually low.
Can I drop my limit to $750,000 to save money?
Technically yes, if FMCSA's minimum applies to your operation. But most brokers won't tender freight below $1 million. While the premium difference may be appealing, the lost loads cost far more than the savings. Brokers regularly request updated certificates of insurance to confirm coverage.
What happens if my liability policy lapses?
FMCSA gets notified electronically the day your insurer cancels. Your authority lands under "not authorized" within 35 days, and you can't legally haul interstate freight until you reinstate. Lapses also trigger a re-underwriting penalty when you reapply, often pushing your next premium up 20 to 50 percent. Certain states may levy fines if you do not return the plates.
Does my radius of operation affect the premium?
Significantly. A 250-mile local operation usually rates 30 to 50 percent below an OTR operation running 48 states. Carriers price for accident frequency, and long-haul operations carry more highway miles, more night driving, and more exposure in states with high jury verdicts.