top of page

California Truck Insurance Requirements: What You Need to Know

Ensuring your trucking business complies with California’s insurance requirements is essential for legal operation and protecting your investment. Whether you operate solely within California or across state lines, here’s a comprehensive guide to understanding the insurance requirements for your trucking business.

Local Trucking Insurance Requirements in California

For trucks operating exclusively within California (intrastate trucking), the state mandates specific insurance coverages based on the type of freight you haul. If your truck has a Gross Vehicle Weight (GVW) over 10,000 pounds, you must obtain a California Intrastate ID Number (T#) and meet the following minimum insurance levels:

  • $1,000,000 for Oil Transport

  • $5,000,000 for Hazardous Materials (Hazmat)

  • $300,000 for Household Goods

  • $750,000 for General Freight

  • $20,000 per vehicle and $20,000 per catastrophe for Cargo Insurance (Intrastate household goods movers and interstate contract carriers)

These coverages ensure that your operations have adequate protection against potential liabilities and damages related to your specific type of cargo.


Interstate Trucking Insurance Requirements

If your trucking business crosses state lines (interstate trucking), you must comply with both California state requirements and Federal Motor Carrier Safety Administration (FMCSA) regulations. This includes:

  • $750,000 to $1,000,000 in liability insurance, depending on the type of freight being hauled.

  • Additional coverages may be required for certain types of cargo or operations, such as hazardous materials.

To operate interstate, your insurance agent must submit specific filings to both the California Department of Motor Vehicles (DMV) and the FMCSA:

  • Form MCS-90: Certifies you have the required insurance coverage for public liability.

  • MCP-65: Required by the California DMV for proof of insurance.

  • Form H: Used for cargo insurance.

  • BMC-91 or BMC-91X: Filed with the FMCSA to demonstrate compliance with federal insurance requirements.

These filings confirm that your insurance coverage meets all regulatory standards, allowing you to operate legally across state lines.



Applying for Necessary Licenses

To comply with these requirements, you may need to apply for certain licenses and registrations. Here are links to where you can apply for the necessary licenses:

  • DOT Number: Apply for your U.S. Department of Transportation (DOT) number through the FMCSA here.

  • PUC License: For household goods movers and other specific operations, apply for your Public Utilities Commission (PUC) license here.



Key Points to Remember

  1. Determine Your Operation Type: Identify if your operation is intrastate (within California) or interstate (crossing state lines) to understand the specific insurance requirements.

  2. Ensure Compliance: Work with your insurance agent to complete and submit all necessary filings. This includes both state-specific and federal forms.

  3. Select Appropriate Coverage: Choose insurance policies that adequately cover your specific type of freight and operation to protect your business from potential risks.




Get Tailored Solutions with Univision Insurance Services

Get Tailored Solutions with Univision Insurance Services

At Univision Insurance Services, we understand that every trucking operation is unique. Our experienced agents will help you navigate these requirements and tailor your insurance policies to meet both state and federal regulations. We provide comprehensive coverage options and ensure all necessary filings are handled promptly, so you can focus on running your business smoothly.

Contact Univision Insurance Services today to get started on securing the right commercial truck insurance for your needs, whether you operate locally within California or across multiple states.

Tags:

 
Featured Posts
Recent Posts

CoverToday Insurance Agency, LLC – Compensation Disclosure

CoverToday Insurance Agency, LLC (“CoverToday”) is committed to transparency in how we are compensated for the insurance brokerage and related services we provide. We work with clients, retail agents, brokers, and insurance carriers to offer a range of insurance solutions. Our compensation comes in various forms, including commissions, contingency income, and, in some cases, fees paid by clients or third parties. Below is an outline of how we are compensated.

​

Commission Income
We receive commissions from insurance carriers or managing general agents for placing and servicing insurance policies. Commissions are typically calculated as a percentage of the premium paid by the insured and are included in the total premium amount. Employees or representatives of CoverToday involved in policy placement and servicing may receive compensation that varies based on the commissions we earn.

​

Contingency Income
CoverToday may receive additional compensation through contingency agreements with insurance carriers or managing general agents. These payments depend on various factors, including premium volume, policy retention, underwriting profitability, and claims history. Since contingency income is calculated based on overall business performance rather than individual policies, there is no direct way to determine how a specific insurance policy affects these payments.

​

Supplemental Commissions
Some insurance companies provide supplemental commissions, which are predetermined, fixed payments based on historical performance metrics similar to those used for contingency income. These supplemental commissions, sometimes referred to as “Guaranteed Supplemental Commissions” (GSCs), are typically negotiated annually and are not contingent on future performance.

​

Fees Paid by Clients
In some cases, particularly for business insurance or complex insurance programs, CoverToday may charge clients a fee in addition to or instead of commissions. These fees are mutually agreed upon in advance and disclosed to the client before coverage is bound. In certain situations, we may receive both commissions and client-paid fees for placement or additional services, such as risk management or policy administration.

​

Wholesale Operations
CoverToday may place insurance through wholesale brokers or managing general agents (MGAs), including those affiliated with us. In such cases, both the wholesale broker and CoverToday may earn commissions. Wholesale brokers and MGAs provide access to specialized insurance markets not available through standard retail brokerage channels. These transactions do not typically impact the total premium paid by the insured.

​

Other Compensation and Benefits
CoverToday may receive additional revenue or benefits in connection with our insurance brokerage services, including:

  • Payments from insurance carriers for training, marketing, or promotional events

  • Fees or interest from the administration of premium finance contracts

  • Interest earned on fiduciary or trust accounts where insurance premiums are temporarily held before remittance to carriers

  • Compensation for policy administration, claims services, or loss control support

​

Carrier Relationships and Preferred Markets
While CoverToday works with a broad range of insurance carriers, we may prioritize strategic relationships with certain insurers that provide competitive pricing, enhanced service, and long-term benefits to our clients. These preferred carriers may offer additional compensation, which we use to invest in technology, training, and improved client services. In some cases, our employees may be incentivized to consider preferred carriers when suitable for a client’s needs. CoverToday representatives may also participate in advisory boards or committees for select carriers to enhance collaboration and service offerings.

​

We are committed to providing full disclosure and transparency regarding our compensation practices. If you have any questions about how CoverToday is compensated for your policy, please contact us for more information.

© 2024 by Univision Insurance Services. Powered by GoZoek.com

Privacy Policy

SMS Terms & Conditions

License#: 0K77310

  • Instagram
  • Facebook
  • YouTube
yelp-logo.png
bottom of page