Motor Truck Liability Insurance for Trucking Companies

At Smarter Truck Insurance Agency, we help trucking companies across the U.S. stay compliant, protected, and ready to grow with the right insurance coverage from day one.

What Is Motor Truck Liability Insurance?

Motor truck liability insurance (also known as auto liability insurance) protects your trucking company when one of your vehicles is involved in an accident and you're found legally responsible. It’s not coverage for your truck — it’s coverage for others: people, property, or vehicles that may be injured or damaged due to your driver’s actions.

This policy is required by the FMCSA (Federal Motor Carrier Safety Administration) and is one of the first coverages you’ll need to secure when applying for your operating authority (MC number) through the Getting Started with Registration. The federal minimum liability levels for most for-hire carriers are set in regulation, including in 49 CFR Part 387 – Minimum Levels of Financial Responsibility.

What Does Motor Truck Liability Insurance Cover?

A strong liability policy is designed to protect your business when your truck is involved in an at-fault accident. It typically includes:

• Bodily Injury: Pays for medical bills, lost wages, and legal costs if another party is injured in an accident involving your truck.
• Property Damage: Covers damage to other vehicles, buildings, signs, fences, and other property you may hit in an accident.
• Legal Defense: Provides funds for attorneys, court costs, and legal fees in case you're sued due to an accident.
• Settlements or Judgments: If you're found liable, the policy can help pay the awarded damages or out-of-court settlements, up to your policy limits.

Why Is Liability Insurance Important for Trucking Companies?

Motor truck liability insurance is critical for several reasons:

• It’s required by law: The FMCSA mandates a minimum of $750,000 in liability coverage for most for-hire carriers, though many shippers and brokers require $1 million. You can review how these minimums work in federal rules like 49 CFR Part 387.
• It protects your business assets: One serious accident can lead to a lawsuit that threatens your trucks, savings, and livelihood.
• It helps you win contracts: Freight brokers and shippers often won’t do business with carriers that can’t show proof of liability insurance with sufficient limits.

Is This the Same as Cargo Insurance?

No. Motor truck liability only protects against injuries or damage you cause to others. It does not protect the load you’re hauling.

To protect the freight itself, you’ll need a separate policy called motor truck cargo insurance. Most trucking operations need both liability and cargo coverage to be fully protected and compliant.

If you want to dig deeper into cargo coverage, make sure to check out the cargo insurance resources on our Smarter Truck Insurance blog.

How Much Does Motor Truck Liability Insurance Cost?

The cost of motor truck liability insurance varies based on several factors, including:

• Type of freight you haul
• Where you operate (local, regional, or long-haul)
• Number of trucks and drivers
• Your CDL history and safety record
• Experience level and business history

Industry research from groups like the Insurance Information Institute (III) shows that commercial auto claim costs and premiums have risen in recent years — which is why shopping with a trucking-focused agency matters.

At Smarter Truck Insurance Agency, we work with multiple top-rated carriers to get the best possible pricing — even for new ventures, owner-operators, and small fleets.

Why Choose Smarter Truck Insurance?

At Smarter Truck Insurance Agency, we don’t sell cookie-cutter policies. We work exclusively with independent truckers, small fleet owners, and start-up carriers to build the right liability and overall protection package — fast and at a fair price.

• Coverage for all freight types (reefer, auto, flatbed, dry van, intermodal)
• Policies for new ventures and higher-risk operations
• Help with filings, certificates, and policy compliance
• Fast COIs for load boards, brokers, or contracts
• Bilingual service and U.S.-based agents
• Licensed in Texas, California, Florida, and nationwide

FAQs: Motor Truck Liability Insurance

Protect Yourself On and Off the Road

At Smarter Truck Insurance Agency, we provide fast quotes, low down payments, and customized coverage for:

• Motor truck liability insurance
• General liability
• Bobtail / non-trucking liability
• Cargo insurance and physical damage
• Additional coverages tailored to your operation

We are proud to serve clients across the following states: Texas, California, Florida, Alabama, Arizona, Georgia, Illinois, Indiana, Kentucky, Mississippi, North Carolina, New Jersey, New Mexico, Nevada, Ohio, South Carolina, Utah, Washington, and Wisconsin.

Whether you're booking your first load or expanding your authority, the right liability coverage helps protect your business, reputation, and future earnings.