California License #4472487 | NPN License #21655529

To operate legally, California truckers must meet both state (CA DMV) and federal (FMCSA) insurance requirements.

At a minimum, you’ll need:

• Primary Auto Liability – Required for all carriers to cover bodily injury and property damage caused while driving.
  
  
• BMC-91X Filing – Proof of federal liability compliance, filed directly with FMCSA.
  
  
• Workers’ Compensation or Occupational Accident – Required if you have employees or to protect independent drivers.
  
  
• General Liability – Often required for brokers, shippers, and warehouse contracts.
  
  
• Cargo Insurance – Protects the goods you haul (commonly $100,000 minimum, higher for specialized loads).
  
  

California also enforces strict minimum liability limits based on vehicle type and freight, which can range from $750,000 to $5,000,000 depending on cargo classification.

• Primary Auto Liability covers accidents on the road, paying for injuries and property damage you cause while driving.
  
  
• General Liability covers off-the-road incidents, such as accidents at loading docks, warehouses, or during non-driving business operations.
  
  

Example:

• If you collide with another vehicle on I-5, Primary Liability pays.
  
  
• If a shipper slips and falls in your warehouse, General Liability pays.
  
  

Both are vital for California truckers, especially those working with freight brokers or high-value contracts.

Yes — if you have employees.

California law requires Workers’ Compensation coverage for any business with employees, including dispatchers, drivers, and yard workers.

Owner-operators who work solo are exempt but should consider Occupational Accident Insurance, which provides:

• Medical expense coverage after an on-the-job injury.
  
  
• Disability income while recovering.
  
  
• Accidental death benefits for families.
  
  

This coverage ensures drivers are protected and compliant without paying the full cost of a Workers’ Comp policy.

Most brokers require at least $100,000 in Motor Truck Cargo coverage, but some contracts — especially for high-value freight like electronics, wine, or pharmaceuticals — may require $250,000 to $500,000.

Cargo insurance protects against:

• Theft
  
  
• Accidents during transport
  
  
• Fire or natural disasters
  
  
• Load spoilage (especially for reefers with a Reefer Breakdown endorsement)
  
  

Without proper limits, you can lose contracts and face direct liability for damaged freight.

The top mistakes include:

• Missing BMC-91X Filings: Without federal proof of liability, your authority will stay inactive.
  
  
• Incorrect USDOT Classifications: Causes delays and unnecessary audits.
  
  
• Underinsuring Cargo: Resulting in denied contracts or uncovered losses.
  
  
• Failing to List Drivers or VINs Accurately: Leads to claim denials after accidents.
  
  
• Not Getting a MCS-90 Endorsement: This is a federal requirement for interstate carriers.
  
  

Working with a trucking insurance specialist ensures you start with the right structure and filings to avoid costly delays.

Non-Trucking Liability (NTL) — also known as Bobtail Insurance — covers your truck when it’s not under dispatch.

Example:

• You drop off a load in Sacramento and drive home without a trailer.
  
  
• During this off-dispatch trip, you cause an accident.
  
  

Your motor carrier’s policy won’t cover it, but NTL will, protecting you from personal liability

California has one of the highest accident and litigation rates in the U.S., especially in congested areas like Los Angeles, the Bay Area, and Sacramento.

This drives up insurance costs due to:

• Higher medical expenses for injury claims.
  
  
• Expensive vehicle repair rates.
  
  
• Large jury verdicts against trucking companies.
  
  

To manage premiums:

• Use telematics and dashcams to document safe driving.
  
  
• Maintain clean driver records.
  
  
• Choose coverage that rewards safety history and low claims.

To get your DOT authority active:

1. Obtain a USDOT & MC Number through FMCSA.
   
   
2. Purchase Primary Liability Insurance and request BMC-91X filing.
   
   
3. Add Cargo Insurance and other required coverages.
   
   
4. File BOC-3 Process Agent Form with FMCSA.
   
   
5. Verify compliance with California DMV and IRP (apportioned plates).
   
   

With proper preparation, your authority can go active in 24–48 hours after filings are complete

Maybe not. Many policies include garaging location restrictions.

If your truck is parked in an unapproved or unsecured area, theft or vandalism claims could be denied.

Solution:

• Verify garaging addresses with your insurer.
  
  
• Add flexible garaging endorsements if parking varies.
  
  

Consider Inland Marine coverage for tools or high-value equipment stored inside the truck.

As your operation expands, you may need:

• Umbrella/Excess Liability: Higher limits for contracts requiring $2M–$5M liability.
  
  
• Downtime Coverage: Lost income if a truck is down after an accident.
  
  
• Cyber Liability: Protection for dispatch systems and client data from hacking.
  
  
• Reefer Breakdown: Covers temperature-sensitive load spoilage.
  
  
• Trailer Interchange: Covers non-owned trailers under interchange agreements.
  
  

These coverages are often required by freight brokers, especially for specialized hauling.

Smart strategies include:

• Hiring drivers with clean records and CDL experience.
  
  
• Installing dashcams and telematics to prove safe driving.
  
  
• Bundling liability, cargo, and physical damage policies.
  
  
• Paying annually instead of monthly to avoid financing fees.
  
  

Working with a broker who understands California’s trucking market and knows which carriers offer the best rates for your business type.

California’s combination of state regulations, wildfire risks, port operations, and high litigation costs make trucking insurance especially complex.

A California-based insurance advisor can help you:

• Navigate DMV and FMCSA filing requirements.
  
  
• Stay compliant with IRP plates, IFTA fuel taxes, and state-level filings.
  
  
• Find carriers who specialize in California trucking risks.
  
  
• Ensure you’re meeting contract requirements for major ports, like Los Angeles and Long Beach.
  
  

Working with a local specialist ensures you avoid costly mistakes and keep your fleet road-ready at all times.