Truck insurance types, explained in plain English
Updated October 2026
Commercial truck insurance isn't one policy. It's a set of coverages, and which ones you need depends on whether you run your own authority, what you haul, and whether your truck is financed. Here's what each one does.
Primary auto liability
Pays for injuries and property damage you cause to other people in a crash. If you run your own authority, it's required by law, and the federal minimum for most for-hire freight is $750,000. Most brokers and shippers ask for $1,000,000. If you're leased onto a carrier, the carrier usually provides it.
Motor truck cargo
Covers the freight you're hauling if it's damaged, lost or stolen. It isn't required by federal law for most freight, but most brokers won't book you without it. Read the exclusions closely; many policies limit coverage for unattended trucks, certain commodities or theft.
Physical damage
Pays to repair or replace your own truck and trailer after a crash, fire, theft or storm. If your truck is financed or leased, your lender will require it. Your deductible is what you pay before coverage kicks in.
Non-trucking liability (bobtail)
For owner-operators leased onto a carrier. It covers you when you're driving your truck for personal use, off dispatch. It doesn't cover you while you're hauling under the carrier's dispatch; that's the carrier's primary liability.
Occupational accident
Covers your own medical bills and lost income if you're hurt on the job and don't have workers' compensation. Many carriers require it for leased owner-operators.
Others you may need
Workers' compensation once you have employees, as most states require. Trailer interchange if you pull trailers you don't own under an interchange agreement. General liability for claims that don't involve driving, which many shippers ask for. Reefer breakdown coverage if you haul refrigerated freight.
Try it: Truck insurance coverage checker
Educational information only, not insurance advice. Talk with a licensed agent about your coverage.
