New Authority Insurance: Requirements, Costs, and How to Get Covered
Everything new carriers need to know about insurance requirements for new MC authority. FMCSA filing requirements, real cost ranges, and strategies for surviving expensive first-year premiums.
Disclaimer: This guide is for educational purposes only. Insurance requirements vary by state, cargo type, and operation. Always consult a licensed insurance agent who specializes in commercial trucking. Requirements and regulations referenced here were current as of early 2026 but are subject to change.
The Insurance Hurdle Every New Carrier Faces
Insurance is the single biggest barrier between getting your MC authority and actually hauling freight. Before your first load, before your truck moves an inch, you need proof of insurance on file with the FMCSA. And for new authorities, that insurance is expensive.
Understanding the requirements, knowing what to expect on pricing, and working with the right agents can save you thousands and prevent the delays that keep new carriers sitting idle while their authority waits for activation.
For a complete overview of all coverage types, see our trucking insurance guide. Compare providers on our insurance comparison page. Use the insurance premium estimator to get a ballpark cost for your operation.
FMCSA Insurance Filing Requirements
The FMCSA mandates minimum insurance coverage for all for-hire carriers. 1 These requirements must be met before your authority goes active.
Required Filings
BMC-91 (Form E) — Proof of Liability Insurance. Your insurance company files this directly with the FMCSA, proving you carry the required minimum liability coverage. 2 This must remain on file continuously.
BMC-91X — Surety Bond Alternative. If you use a surety bond instead of traditional insurance for the FMCSA filing, the BMC-91X is the applicable form. Most carriers use traditional insurance (BMC-91).
Minimum Coverage by Cargo Type
| Cargo Type | Minimum Liability |
|---|---|
| General freight (non-hazmat) | $750,000 |
| Household goods | $750,000 |
| Oil transport (non-bulk) | $1,000,000 |
| Hazardous materials | $1,000,000 - $5,000,000 |
These are FMCSA minimums per 49 CFR Part 387. 1 Many brokers and shippers require $1,000,000 in liability regardless of cargo type. Carrying $1,000,000 opens more freight opportunities even if you only haul general freight.
Additional Coverage You Need
Beyond the FMCSA minimum, most carriers need:
Cargo insurance: $100,000 is the standard minimum. Many brokers require it, and it protects you from claims for damaged or lost freight.
Physical damage (comp and collision): Covers your truck and trailer. Required by lenders if you have a loan.
Bobtail or non-trucking liability: Covers your truck when not under dispatch.
Occupational accident insurance: Covers medical expenses and lost income if you are injured on the job. Not required by FMCSA but strongly recommended for owner operators.
What New Authority Insurance Actually Costs
New authority carriers pay significantly more than established operators. Here are realistic ranges based on single-truck owner operators with general freight authority:
First-Year Cost Ranges
| Coverage | Annual Range |
|---|---|
| Primary liability ($1M) | $8,000 - $14,000 |
| Cargo insurance ($100K) | $800 - $2,000 |
| Physical damage | $2,000 - $5,000 |
| Bobtail/NTL | $400 - $800 |
| Occupational accident | $800 - $1,200 |
| Total first-year estimate | $12,000 - $23,000 |
Why New Authority Costs More
Insurance companies price based on risk data. New authorities present elevated risk because:
- Approximately 30% of new trucking companies fail within 2 years 6
- New carriers have no verifiable safety history with the FMCSA
- No claims history means no proof of safe operations
- New operators are statistically more likely to have incidents
After 18-24 months of clean operations, most carriers see meaningful rate reductions at their first renewal. The improvement continues as your authority ages and your safety record builds.
Getting Insured: Step by Step
1. Start Early
Begin the insurance shopping process 2-4 weeks before you need coverage. Do not wait until the day your authority is ready.
2. Work with Specialized Agents
Use insurance agents who specialize in commercial trucking. General insurance agents typically lack access to the markets that insure new authorities. Trucking-specific agents know which carriers accept new authority risks and can quote multiple markets efficiently.
Get at least 3 quotes from different agents. Rates vary dramatically between insurers for new authority risks.
3. Have Your Information Ready
Agents need: your MC number and USDOT number, CDL information for all drivers, truck VIN and equipment details, planned operating radius and cargo types, prior insurance history (if any), and loss history for the past 3-5 years.
4. Understand What You're Buying
Review the declarations page carefully. Verify coverage limits, deductibles, and any exclusions. Ask about:
- When the BMC-91 will be filed with the FMCSA
- Monthly versus annual payment options
- Cancellation terms and notice requirements
- What triggers a mid-term rate increase
5. Bind Coverage and Verify Filing
Once you select a policy, bind coverage and confirm that your agent files the BMC-91 with the FMCSA. Verify the filing appears on the FMCSA SAFER website within a few days. 3 Your authority cannot go active without this filing.
Surviving the Expensive First Two Years
Budget Conservatively
Build insurance into your startup costs from day one. Do not be surprised by the premium. If $15,000-$20,000 in annual insurance is not workable in your business plan, your revenue projections may need adjustment.
Avoid Lapses at All Costs
An insurance lapse on your FMCSA record makes future insurance even more expensive and can result in authority revocation. 4 If you are struggling to make premium payments, talk to your agent before the policy cancels.
Build Your Safety Record
Every month of clean operations without accidents or violations improves your renewal position. CSA scores directly influence insurance pricing. Maintain clean inspections and use your ELD properly.
Plan for Renewal
At 10-12 months, start shopping for renewal quotes. Do not automatically renew with the same carrier. Competition for your business increases as your authority ages, and shopping around at renewal can produce significant savings.
For strategies to reduce your insurance costs over time, see our guide on lowering insurance premiums. For the full startup sequence including insurance timing, see our starting a trucking business guide. Invest in the practices that make you insurable at competitive rates: clean driving, proper maintenance, and operational discipline. The carriers who control insurance costs are the ones who survive the first two years and build sustainable businesses.
Frequently Asked Questions
- How much does insurance cost for a new authority carrier?
- New authority carriers with less than two years of operating history should budget $12,000 to $22,000 per year for a single truck covering primary liability, cargo, and physical damage. The biggest factor is authority age. Carriers in their first 6 months pay the highest rates. After 12-18 months of clean operations, renewal rates typically drop 15-30%. Rates vary significantly by cargo type, driving record, equipment age, and state of domicile.
- When should I start shopping for insurance?
- Start shopping for insurance as soon as you submit your MC authority application through the FMCSA MOTUS portal. The insurance filing process takes time, and your authority cannot go active without proof of insurance on file. Most insurance agents recommend starting the quoting process 2-4 weeks before you need coverage to begin. This gives you time to compare quotes and complete the application process.
- What is a BMC-91 filing?
- A BMC-91 is the form your insurance company files with the FMCSA proving that you have the required minimum liability coverage. Also called an MCS-90 endorsement, this filing must remain active with the FMCSA at all times for your authority to stay active. If your insurance lapses and the BMC-91 filing is removed, the FMCSA begins the process of revoking your authority. Your insurance company handles the filing, but you should verify it shows as active on the FMCSA SAFER website.
- Can I get insurance with a new CDL and no experience?
- Yes, but options are limited and expensive. Most standard trucking insurance markets require at least 2 years of CDL experience. Carriers with drivers who have less than 2 years of experience are placed in surplus lines markets where premiums are significantly higher. Some insurance programs specifically serve new drivers, but expect to pay 30-50% more than experienced operators until you build a track record.
- Do I need insurance before my MC authority is active?
- You need insurance bound and the BMC-91 filed with the FMCSA before your authority can go active. The insurance must be in force on the date your authority becomes active. Most carriers bind insurance coverage 1-2 days before their expected activation date. Your insurance agent can coordinate the timing of the BMC-91 filing with your authority activation.
- What happens if my insurance lapses after getting authority?
- An insurance lapse is one of the most serious compliance failures in trucking. When your insurance company notifies the FMCSA that your coverage has been cancelled, the FMCSA begins the authority revocation process. You must stop operating immediately. Reinstatement requires obtaining new insurance, having a new BMC-91 filed, and potentially reapplying for authority. Lapses also appear on your FMCSA record and can make future insurance more expensive.
Sources & References (6)
FMCSA — 49 CFR Part 387: Minimum Levels of Financial Responsibility for Motor Carriers
ecfr.gov ↗Bureau of Labor Statistics — Occupational Outlook for Heavy and Tractor-Trailer Truck Drivers
bls.gov ↗