Indiana Motor Carriers follow FMCSA’s minimum Commercial Auto Liability Requirements.
But the market is finally seeing lower premiums due to new insurance player entering the scene.
Indiana Commercial Truck Insurance Requirements for Motor Carriers start with Federal Requirements set by FMCSA.
FMCSA is the Federal Motor Carrier Safety Administration which oversees the Department of Transportation.
Commercial trucks hauling freight for hire across state lines must first register with FMCSA.
Commercial Trucks operating Intrastate in Indiana are also required to get a Federal DOT number.
Here’s the FMCSA registration portal to get your DOT number.
Why is Commercial Truck Insurance so expensive in Indiana?
Commercial Truck Insurance is a significant expense for new startup motor carriers in any state, and Indiana actually enjoys some of the best rates in the country.
Unfortunately, every state has their own historically poor underwriting results and high litigation costs which lead to lack of insurance providers everywhere.
Be sure to get some insurance estimates from a professional truck insurance broker before you register for your DOT. Insurance is likely to be one of your highest overhead costs as a Motor Carrier.
Is there a new Commercial Truck Insurance company for Indiana Expediters?
There is some very good insurance news for new startup owner-operators and motor carriers just this month.
A new commercial vehicle insurance option has just launched in Ohio, Indiana, Illinois, Florida, and Texas through select independent agents.
They’ve been providing some VERY ATTRACTIVE premiums for both new venture truckers and established entities.
CIS is excited to partner with this new commercial truck insurance company to offer more choices for our Owner Ops & Motor Carriers.
CIS: 330-864-1511
15 minutes really could save you BIG $$$ on your Expediting Insurance!
What insurance does a new Motor Carrier in Indiana need:
Both FMCSA and the Indiana Department of Transportation (INDOT) require proof of minimum Commercial Auto Liability Insurance.
After you purchase your commercial truck insurance policy the insurance company sends proof directly to FMCSA for you.
This is called your BMC-91X Filing.
The MCS-90 is just the endorsement to your policy which guarantees the insurance to FMCSA.
At the same time your insurance provider will also send your Form E proof of insurance to INDOT.
Then FMCSA approves your MC, Motor Carrier operating authority.
Liability Insurance
Commercial Auto Liability includes Bodily Injury and Property Damage to others:
Bodily Injury Liability is insurance if you cause an accident that injures or kills someone.
It will pay for their medical bills, rehab, long term care, funeral expenses, lost earnings as well as pain and suffering.
Property Damage Liability is insurance if you damage another person’s property.
It can pay for replacements, repairs on other vehicles, structures or even a pet.
Bodily Injury and Property Damage coverage for commercial trucking is usually in “CSL” or Combined Single Limits.
A Liability claim will only pay up to the CSL limits purchases in your insurance policy.
Indiana Commercial Truck Insurance Requirements for Across State Lines
Commercial Truck Insurance Requirements for Motor Carriers hauling freight for hire across state lines:
$750,000 minimum for Commercial Trucks hauling general freight
$300,000 minimum for Commercial Van and Sprinter Insurance
Additional Coverage Options
Indiana Commercial Truck Insurance additional coverage options include:
Uninsured or Underinsured (UM/UIM) Protection covers you and passengers for injuries and damages if an uninsured or underinsured driver hits you.
UM/UIM reimburses you for medical bills, lost wages and also pain and suffering resulting from bodily injuries from an accident.
This coverage only applies if the other driver is At Fault and has insufficient or no liability coverage of their own.
Medical Payments (MedPay) Protection covers your medical and funeral expenses if you or your passengers are injured in a truck accident.
Your Professional Truck Insurance Broker can break down the individual insurance premium cost for each coverage option.
She will also go over your requirements for Motor Truck Cargo insurance and what is and isn’t covered on your policy.
Taking the time to work with her will help you to understand and purchase the best commercial truck insurance package for you.
Physical Damage Coverage is offered on most Indiana Commercial Truck Insurance Policies:
Physical Damage Insurance offers you Collision and Comprehensive (Comp) coverage for your truck.
Collision coverage protects your truck if it’s damaged in an accident.
It also pays to repair or replace the vehicle if it collides with another object, overturns, or rolls.
Comprehensive coverage protects your truck if it’s damaged by something other than a collision with a vehicle or object.
Examples of Comp include theft, damage from falling trees, wind, hail and animal hits.
Physical Damage insurance is based on either the Actual Cash Value (ACV) of the truck or the Stated Amount of your truck.
A Stated Amount valuation should include all permanently attached equipment in your truck.
This can include aftermarket parts, mounted equipment and other permanent modifications.
Remember to include all accessories that work as a part of permanent devices or load securing equipment.
Here’s some examples of permanently attached equipment to consider:
- Custom paint, decals and signage
- Electronics that have been bolted or mounted to your truck
- Coupling devices like 5th wheel receivers
- Equipment and accessories for vacuuming
- Mounted tool boxes, shelving and ladder racking
- Tarps, chains and binders
What makes a truck a commercial vehicle in Indiana?
The Indiana Commercial Vehicle Guidebook here states that all vehicles transporting property with a Gross Vehicle Weight of 10,001 lbs or more must have a USDOT number.
There is an exemption if you are farm plated and hauling only intrastate.
That includes 1 ton Duallys with Trailers commonly used for HotShot trucking when the combination of both exceeds 10,001 lbs.
HotShot Truck insurance usually falls under the $750,000 limit requirement.
[Related Story – What is the Definition of a Commercial Vehicle]
Other Indiana Commercial Truck Requirements
Once you have your DOT number and insurance in place, it’s time for your Indiana Motor Carrier Application.
This is called Form IOA-1.
Then be sure to remember your obligation to complete your UCR Filing.
Interstate Motor Carriers are required to submit annual fees to Unified Carrier Registration, or UCR.
Unified Carrier Registration supports funding for state highway motor carrier registration and safety programs.
The amount of your fee is based on how many trucks you have.
Up to 2 trucks is $37 each and 3-5 trucks is $111 each.
Note that UCR is clear that smaller units like HotShots, Cargo Vans and Sprinters are not necessarily exempt from this fee.
According to the UCR Handbook, page 30…
“Some motor carriers or freight forwarders may operate only vehicles that are not classified as commercial motor vehicles, typically because the vehicles are lighter or carry fewer passengers than vehicles included in the definition of the term commercial motor vehicle. Such a business must register for UCR because these entities have a federal MC number. Because the MC numbers are generated in the federal URS system, a USDOT number will also be issued, but it would ordinarily pay a UCR fee in the lowest bracket, because it operates no commercial motor vehicles.”
If these lightweight vehicles pull trailers in interstate commerce and the gross combination weight rating or gross combination weight is 10,001 or more, the entity will account for all of these commercial motor vehicles and pay the applicable fee.
Here is your UCR Registration Portal.
If you have any questions or just want to chat…give us a call at CIS.
We’d love to help you get on the road!
