Texas License #3365362 | NPN License #21655529

To legally operate in Texas, you need coverage that meets both state and federal requirements:

• Primary Auto Liability: Covers bodily injury and property damage you cause while driving. Required by FMCSA.
  
  
• Motor Truck Cargo Insurance: Protects the freight you haul from damage or theft.
  
  
• General Liability Insurance: Covers off-the-road claims, like loading dock accidents or property damage.
  
  
• Workers’ Compensation or Occupational Accident Coverage: Required if you have employees and strongly recommended for owner-operators.
  
  
• Commercial Auto Insurance: For vehicles like hotshot rigs, service trucks, and trailers.
  
  

Depending on your freight, FMCSA minimum liability requirements range from $750,000 to $5,000,000.

Texas has unique state-level requirements beyond FMCSA compliance:

• Intrastate Carriers: Trucks operating only within Texas must meet minimum state liability limits (as low as $300,000 for lighter trucks and up to $5M for hazardous freight).
  
  
• TxDMV Filings: Proof of insurance must be submitted to the Texas Department of Motor Vehicles for active registration.
  
  
• Workers’ Compensation: Texas is the only state where Workers’ Comp is not mandatory, but many freight brokers and contractors require proof of coverage before hiring you.
  
  

Operating without meeting both state and federal requirements can lead to hefty fines, registration suspensions, and lost contracts.

Legally, no — Texas does not require private trucking companies to carry Workers’ Comp.

However:

• Many brokers, ports, and large shippers require it as a hiring condition.
  
  
• Without coverage, an injured driver could sue your company directly, leading to six-figure legal expenses.
  
  
• Occupational Accident Insurance is a lower-cost alternative for independent drivers, covering medical bills, disability income, and accidental death benefits.

Motor Truck Cargo Insurance covers the value of the goods you transport if they are stolen, damaged, or destroyed in transit.

Typical requirements:

• $100,000 minimum coverage for most general freight.
  
  
• $250,000–$500,000 coverage for high-value freight such as electronics, pharmaceuticals, or oilfield equipment.
  
  

This policy protects you financially and is often required by freight brokers before you can haul their loads.

• Primary Auto Liability: Covers accidents on the road involving your truck — such as collisions causing bodily injury or property damage.
  
  
• General Liability: Covers non-driving incidents, like damage to a shipper’s property while loading or unloading.
  
  

Example:

• A crash on I-35 caused by your driver = Primary Liability pays.
  
  
• A forklift operator damages warehouse property while your team is unloading freight = General Liability pays.
  
  

Steps to get your authority active:

1. Get a USDOT and MC Number from FMCSA.
   
   
2. Purchase Primary Liability coverage and have your agent file BMC-91X with FMCSA.
   
   
3. File Form BOC-3 to designate a process agent.
   
   
4. Verify TxDMV insurance filings for intrastate carriers.
   
   
5. Obtain IRP apportioned plates and register for IFTA fuel tax reporting.
   
   

With proper preparation, your authority can be active within 24–48 hours after insurance filings are completed.

Yes, if you’re leased to a motor carrier but occasionally drive your truck off-dispatch.

Bobtail insurance covers your truck when it’s:

• Driven home after dropping off a load.
  
  
• Being used personally without a trailer or active dispatch.
  
  

Your carrier’s policy only covers the truck when it’s under dispatch, leaving you personally liable otherwise.

Top pitfalls to avoid:

• Missing state-level filings: TxDMV filings are separate from FMCSA filings and must be accurate.
  
  
• Undervaluing cargo insurance: Leads to denied claims or lost broker contracts.
  
  
• Incorrect driver or VIN information: Can void coverage at claim time.
  
  
• Failing to purchase Non-Trucking Liability: Leaving gaps in personal use coverage.
  
  
• Parking in unsecured areas: Many policies exclude coverage for theft in non-approved storage locations.

Texas has some of the highest cargo and truck theft rates in the U.S., especially near Houston and Dallas.

To avoid denied claims:

• Install GPS tracking and dashcams.
  
  
• Use secured yards or fenced parking areas.
  
  
• Add Inland Marine coverage for tools, tarps, and specialty equipment stored outside the truck.
  
  

Verify garaging address endorsements to prevent claim denials.

As your fleet grows, consider adding:

• Umbrella Liability: Extra $1M–$5M for contracts requiring higher limits.
  
  
• Downtime Coverage: Pays lost income while a truck is down after an accident.
  
  
• Reefer Breakdown: Covers spoilage of refrigerated freight.
  
  
• Cyber Liability: Protects dispatch systems and client data from hacking or ransomware attacks.
  
  

Trailer Interchange: Covers non-owned trailers under interchange agreements.

Practical strategies to reduce costs:

• Hire drivers with clean CDL records.
  
  
• Equip trucks with telematics, dashcams, and safety tech to qualify for discounts.
  
  
• Bundle policies like Primary Liability, Cargo, and Physical Damage.
  
  
• Pay annually to avoid monthly premium financing fees.
  
  

Work with a Texas-based broker who understands state requirements and has access to regional carriers.

Texas is a unique freight hub, with challenges that include:

• High cargo theft rates.
  
  
• Intrastate vs. interstate compliance differences.
  
  
• Oilfield hauling and oversized freight regulations.
  
  
• Strict port and border security requirements in Houston, Laredo, and Corpus Christi.
  
  

A Texas trucking insurance expert ensures:

• Your filings are accurate and timely.
  
  
• You have broker-approved coverage for high-value loads.
  
  
• You avoid common gaps that cause claim denials.
  
  

You stay compliant with both state and federal laws while maximizing your profit margins.