FMCSA requires all motor carriers to have $750,000 auto liability, so why does everyone tell me to get $1,000,000 auto liability?
The $750,000 auto liability is a minimum coverage for the safety of the public to ensure that if you cause a significant accident, you have enough coverage to cover a claim. Even $750,000 is not enough in some claims to cover all of the damage caused by the damage a truck can cause. 26,000 lbs, or more, at 60mph can cause millions of dollars of damage to vehicles, cargo, public property, and injuries to people. Of course, you’ll also be required to have $100,000 cargo coverage to haul loads.
Most loads (including Amazon Relay) require $1,000,000 in auto liability simply for more protection. It is incredibly rare for you to be able to haul with only $750,000, and they likely won’t be quality loads. You can expect to pay around 25-30% more for a trucking insurance policy when you have $1,000,000 in auto liability compared to $750,000, but you will more than make up with that with the greater availability of loads you can haul.
Only having $750,000 in auto liability is only limiting yourself and the available, and quality, of loads that you can haul. $1,000,000 in auto liability is easily worth the investment. We would also recommend you add on a commercial excess liability policy (sometimes referred to as a commercial umbrella policy) and bring your liability limits to $5,000,000.
