New Authority Insurance in 2026: What Brokers Require

Insurance is usually a new authority's biggest startup cost, and the most common reason a broker says no. The legal minimum and what brokers actually expect are different numbers, and buying only the minimum can mean paying for a policy twice. Here's what you need, what it costs and how to get it right the first time.

What the law requires

For a for-hire carrier hauling general freight across state lines in a vehicle rated 10,001 lbs or more, the federal minimum is $750,000 in auto liability, set in 49 CFR 387.9. Your insurer files proof of that coverage with FMCSA, and your authority can't go active until it's on file.

Your liability policy also carries an MCS-90 endorsement. It guarantees that the public gets paid, up to the federal minimum, for an accident your policy covers by law, even if the policy would otherwise deny the claim. If that happens, the insurer can come back to you for repayment, so it protects the public, not you.

Cargo insurance isn't federally required for general freight. Hazmat carries higher liability minimums. Your state may also require its own filings for intrastate work.

What brokers expect

Buy to the broker standard from the start. Raising limits mid-policy usually costs more than buying them upfront, and every week with the wrong limits is a week of loads you can't take.

The coverages, one by one

• Primary auto liability. Pays for injuries and damage you cause to others. This is the coverage FMCSA requires and brokers check first.
• Motor truck cargo. Pays for damage to or loss of the freight. Check the exclusions: some policies exclude certain commodities, unattended trucks or reefer breakdown unless you add it.
• Physical damage. Covers your own truck and trailer. Not legally required, but your lender will require it if the truck is financed.
• Trailer interchange or non-owned trailer. Covers a trailer you don't own while you pull it. Essential for power only.
• Occupational accident. Covers you if you're hurt on the job. Many owner-operators carry it as an alternative to workers' compensation. Check your state's rules.
• General liability. Covers non-driving incidents, like damage at a customer's dock. Some brokers and shippers ask for it.

Read the cargo policy's exclusions closely. A reefer carrier whose policy doesn't cover reefer breakdown, or a flatbed carrier whose policy excludes the freight they haul most, has a gap a broker may spot before you do.

How insurance filings work

You don't send FMCSA your insurance certificate. Your insurer files proof of liability coverage electronically, on a form called the BMC-91 (or BMC-91X). FMCSA's insurance filing requirements page explains the forms.

• Your authority won't go active until the filing and your BOC-3 are on record.
• If your policy is cancelled, the insurer notifies FMCSA. Without a replacement filing, your authority is revoked.
• When you switch insurers, make sure the new filing is on record before the old policy ends, so there's no gap.

Check your filing status on FMCSA's records after any change. A lapsed filing stops your loads the same day brokers notice it.

What it costs, and why

New authority insurance is expensive because insurers have no history on your company. Vendor estimates commonly put a new owner-operator's first year somewhere around $12,000 to $20,000 or more. That's an estimate, not a quote, and your number can land well outside it. What moves it:

• Your driving record and CDL experience. Many insurers want at least two years of CDL experience, and violations raise rates.
• Where the truck is garaged and where you run.
• Equipment and freight. Truck value, trailer type, commodity and cargo limits.
• Radius. Local and regional operations often price differently from long haul.
• Deductibles and limits. Higher deductibles lower the premium, if you can afford the deductible.

Most new carriers pay a down payment and monthly installments. Budget for the down payment before you file for authority (our startup cost calculator puts it next to the other costs), and know your monthly premium as part of your cost per mile.

How to lower your premium

• Get quotes from several agents who specialize in trucking, not just your car insurance agent
• Ask about safety technology discounts, such as dash cams
• Keep your record clean in the first year. Renewal is when a clean history starts to pay off
• Choose deductibles you can actually pay
• Don't over-insure what brokers don't ask for, and don't under-insure what they do

Questions to ask your insurance agent

A good trucking agent answers all of these before you pay a deposit:

• Will you file my BMC-91 with FMCSA, and how soon after I bind the policy?
• Does the cargo policy cover the commodities I plan to haul? What does it exclude?
• If I run a reefer, is reefer breakdown covered?
• Are the limits on the certificate what brokers ask for: $1,000,000 liability and $100,000 cargo?
• How fast can you send a certificate naming a new broker as certificate holder, including evenings?
• What happens if I miss a payment, and how much warning do I get before cancellation?
• What would lower my premium at renewal?

Write the answers down. If an agent can't answer the cargo exclusion question clearly, keep shopping.

Insurance mistakes that cost new carriers loads

• Buying $750,000 because it's the legal minimum, then finding most brokers want $1,000,000
• A cargo policy with exclusions that rule out the freight you planned to haul
• A slow agent. Brokers often need a certificate naming them within the hour
• A lapse between policies, which can revoke your authority
• Missing a payment, which can cancel the policy and the filing with it

We check what each broker asks for before you're turned down, and match loads to your coverage. See how our dispatch for new authority carriers works, or start with our first 90 days guide.