To activate an MC number, FMCSA requires primary liability on file, at least $750,000 for general freight. Brokers usually want $1 million plus motor truck cargo. A full own-authority package typically runs $12,000 to $20,000 a year, and $18,000 to $25,000 in a new authority's first year.
Key takeaways
- Primary liability is the only coverage FMCSA requires before your authority activates.
- Your insurer files the MCS-90 and BMC-91; you never file them yourself.
- Plan for $1 million in liability: it is the broker standard, even where $750,000 is legal.
- Rates usually improve after 12 clean months under your MC number, and again after 24.
What running your own authority means
When you hold your own MC and DOT numbers, you choose your loads, set your rates, and keep more of the revenue. You also carry every insurance obligation yourself. The FMCSA will not activate your authority until liability coverage is bound and on file, so insurance is the step that decides when you can haul.
- Primary liability bound before FMCSA activation
- MCS-90 endorsement attached to your policy by your insurer
- BMC-91 filed electronically for for-hire authority
- Motor truck cargo, which most brokers require before they dispatch
- Annual renewals, with filings refreshed each time
The coverages you need
From the one FMCSA mandates to the ones brokers, shippers, and lenders ask for.
Primary auto liability FMCSA required
$6,000 to $15,000/yrRequired under 49 CFR Part 387 for all for-hire motor carriers. Pays third parties for bodily injury and property damage. Written at $750,000, $1 million, and higher limits.
Physical damage Lender required
% of truck valueCollision, theft, fire, and vandalism on your own truck and trailer, on stated value or actual cash value. Required by your lender while the truck is financed.
Motor truck cargo Broker required
$1,000 to $2,500/yrCovers freight you haul against damage, theft, or loss in transit. Most brokers require proof before dispatching loads.
General liability Often required
$400 to $700/yrCovers your business beyond the cab: loading, unloading, and premises claims. Many shippers and facilities require it.
Trailer interchange Specialized
Covers non-owned trailers you pull under a written interchange agreement against collision, fire, theft, or vandalism while in your custody.
Reefer breakdown Specialized
An endorsement to cargo that pays for spoiled freight when the refrigeration unit fails mid-haul. Essential for temperature-controlled loads.
FMCSA minimum insurance requirements
| Operation | Federal minimum |
|---|---|
| Cargo vans and sprintersFor-hire vehicles under 10,000 lbs GVW | $300,000 |
| General freight, non-hazmatMost dry van, flatbed, and reefer | $750,000 |
| Oil and certain hazardous materials | $1,000,000 |
| Higher-hazard materials | $5,000,000 |
Freight brokers and large shippers commonly require $1 million in primary liability regardless of the federal minimum. Even if your freight qualifies for $750,000, plan for $1 million from the start.
The MCS-90 endorsement and the BMC-91 are filed by the insurance carrier, before activation and again at every renewal.
What it costs in 2026
Most authority holders pay $12,000 to $20,000 a year for the full stack. Here is how it breaks down.
| Coverage | Typical annual cost |
|---|---|
| Primary liabilityThe biggest line; required before activation | $6,000 to $15,000 |
| Physical damage5% to 6.5% of truck value; a $120,000 tractor runs $6,000 to $7,800 | $6,000 to $7,800 |
| Motor truck cargoSpecialty commodities cost more | $1,000 to $2,500 |
| General liability | $400 to $700 |
| Full package, established operator | $12,000 to $20,000 |
What moves your number
- Garaging state
- Driving record
- Years under your MC
- Commodity
- Operating radius
How to get covered and activated
- Request quotes
An agent needs your DOT number, truck details, driving history, commodity, and radius.
- Bind the policy
Specialty agents can often bind the same day or next business day.
- Insurer files MCS-90 and BMC-91
The filings reach the FMCSA electronically and certify your financial responsibility.
- Authority activates
Once the filing posts and the protest period has passed, you can haul under your own MC.
OOIHub is published by Trucking Insurance Services, the agency recommended here.
Guides for authority holders
Frequently asked questions
How quickly can I get insurance for new authority?
In most cases, specialty truck insurance agents can bind coverage same day or next business day. Once the policy is bound, a certificate is issued, the insurance carrier files the required MCS-90 endorsement and BMC-91 with the FMCSA electronically, and your authority can be activated.
What limits does the FMCSA require for primary liability?
For most for-hire freight, the FMCSA requires a minimum of $750,000 in primary liability. Hazmat carriers face higher minimums, from $1 million to $5 million depending on the material. Many freight brokers and large shippers require $1 million regardless of the federal minimum.
Do I need to file proof of insurance with the FMCSA?
Yes, but you do not file it yourself. Your insurance company files a BMC-91 with the FMCSA and attaches the MCS-90 endorsement to your policy. Those filings prove you carry the required financial responsibility, and they must be in place before your authority activates and again at each renewal.
What is a BMC-91 filing?
The BMC-91 is the form your insurance carrier files with the FMCSA to certify that you carry the required primary liability. Without it, the FMCSA will not activate your operating authority. If your policy cancels, the carrier files a BMC-91X cancellation notice and your authority goes inactive.
Can I get cargo coverage if I'm brand new to the industry?
Yes. Many markets write motor truck cargo for new authorities. Premiums run higher than for experienced operators, and some commodities (fresh produce, electronics, jewelry) face stricter underwriting. Most standard freight is accessible. The cargo explainer covers what the policy includes.