Dispatch AutopilotCar hauler insurance requirements: what you need and why
Insurance is usually a new car hauler’s biggest fixed cost, and brokers will check it before they give you a load. Here is what is required by law and what the market expects.
Federal minimum: public liability
Under 49 CFR 387.9, for-hire carriers of non-hazardous property in interstate commerce must carry at least:
| Vehicle weight (GVWR) | Minimum liability |
|---|---|
| 10,001 lbs or more | $750,000 |
| Under 10,001 lbs | $300,000 |
Your insurance company files proof of this coverage with FMCSA, and your operating authority will not become active without it. Many brokers and shippers ask for $1,000,000 in liability, so check before you buy.
Cargo insurance
Cargo insurance pays for damage to the vehicles you carry. It is not federally required for most motor carriers, but almost every auto transport broker requires it and will ask for your certificate. Choose a limit that covers the value of a full trailer: a load of new pickups or luxury cars is worth far more than a load of used sedans. Read the exclusions carefully (for example unattended vehicle, theft or loading damage).
Other coverage to consider
- Physical damage for your own truck and trailer.
- Non-trucking liability (bobtail) for leased owner-operators.
- Occupational accident or workers’ compensation for drivers.
- General liability if you have a yard or office.
How to keep premiums down
- Hire experienced drivers with clean records.
- Keep maintenance and inspection records in order.
- Do thorough vehicle inspections and keep photos; a low claims history matters at renewal.
- Shop your policy every year with a broker who knows auto transport.
Keep your insurance certificate ready to attach to every invoice: Dispatch Autopilot can add your W-9 and insurance certificate to invoice emails automatically.
Questions
What is the minimum insurance for a car hauler?
For interstate for-hire carriers of general freight: $750,000 liability for vehicles of 10,001 lbs GVWR or more and $300,000 under 10,001 lbs, per 49 CFR 387.9.
Is cargo insurance required for car haulers?
It is not federally required for most carriers, but nearly all auto transport brokers require it.
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