Wisconsin Trucking Insurance Requirements start with FMCSA Rules
New to trucking? Here’s a quick rundown of the key players you’ll need to know:
First up, the FMCSA (Federal Motor Carrier Safety Administration).
Think of them as the national rule-makers, overseeing the Department of Transportation across the country.
Then you have WisDOT (Wisconsin Department of Transportation).
They follow the FMCSA’s lead to manage trucking operations in Wisconsin.
Whether you plan to drive across state lines (interstate) or stay within Wisconsin (intrastate), commercial trucks need to register for a Federal DOT number.
That will be the ID number for your truck.
Once you have your DOT number, your insurance provider (likely Progressive or GEICO) will send proof of insurance directly to both FMCSA and WisDOT for you.
If you want to become a Motor Carrier and haul freight across state lines with your own MC number, you’ll have a few more hoops to jump through.
Let’s break it down, step-by-step.
Getting your new DOT and MC number:
- First you register with FMCSA for your DOT number.
- Then Progressive or GEICO electronically sends proof to FMCSA for you.
- This proof of insurance is called your BMC-91X Filing.
- The MCS-90 is just your insurance company promising FMCSA you have coverage in place.*
- GEICO or Progressive will also send your Form E certificate of insurance to WisDOT.
- You can then easily get your BOC-3 Form online. (This designates a process agent who can track you down in any state:)
- Within a month, FMCSA issues your actual MC number which is your approved Motor Carrier interstate operating authority.
*The MCS-90 is kind of like a bond—it’s your insurance company’s promise to protect the public.
That’s why you can’t just cancel trucking insurance in real time.
FMCSA requires a 35-day notice period so that the public can know when your insurance coverage actually ends.
But don’t jump into your new DOT Operating Authority just yet!
First, take the time to get your ducks in a row.
Make sure the insurance costs and all other overhead costs fit your budget.
Your first step is to make contact with a great Transportation Insurance Specialist– she’ll hold your hand through this process:)
She’ll show you the ropes by guiding you step by step into your new venture.
You’ll get a pretty good idea of what everything will cost BEFORE you spend the money on your DOT number.
There are pros and cons to becoming a new motor carrier that she can talk through with you.
Sometimes it’s even better to hold off on a new DOT and haul for someone else for a year to see if you even like trucking!
We work as your advocate and want to help you succeed.
When it’s time for you to pull the trigger, we’ll help you with our Simple Steps to Get Your Motor Carrier Authority Cheat Sheet.
Is this a Good Time to Set Up a Trucking Company in Wisconsin?
A whopping 90% of manufacturers say they feel confident and are expanding to bring in new customers.
Racine County is investing over $800 million in advanced manufacturing tech, creating more trucking opportunities.
The region clearly benefits from its proximity to Chicago and Milwaukee, but with Microsoft’s massive $7.3 billion investment in its Mount Pleasant AI data center there’s more activity than ever before.
Even old auto plants, like the former GM site in Janesville, are being transformed, and specialized suppliers are busy all over the state, from Muskego and Sturtevant to Union Grove.
It’s also worth mentioning that the current FMCSA crackdown on non-domiciled CDL drivers means there’s less competition for loads.
Could this be a good opportunity to bid just a little higher on that next load?
With its affordable cost of living and projected economic growth, Yes, Wisconsin is a great state to start your trucking business!
Why is Trucking Insurance in Wisconsin so Expensive?
Believe it or not, Wisconsin actually has some of the most affordable trucking insurance rates in the entire country.
Now, that doesn’t mean it’s cheap:)
We’re still talking about commercial truck insurance, after all.
That’s why it’s super important to get your insurance quotes before you even think about starting your new DOT number.
So, why is commercial trucking insurance so pricey in the first place?
It really comes down to one thing: insurance companies are paying out more in claims from accidents and lawsuits than they’re taking in.
Who has the Cheapest Truck Insurance in Wisconsin
For years, Progressive was the go-to for new trucking ventures nationwide.
Now, GEICO has entered the commercial truck insurance game, and they’re shaking things up.
So, who’s cheaper? It’s a toss-up.
Sometimes it’s Progressive, sometimes it’s GEICO.
The only way to know for sure is to compare quotes apples to apples because the rates are always changing.
Let CIS run a Progressive vs GEICO comparison for you, so you can see the difference for yourself.
How much Truck Insurance will you need?
Wisconsin follows FMCSA guidelines for Interstate Trucking for Hire Insurance.
So if you’re hauling freight for hire across state lines, here are your required limits of Commercial Auto Liability coverage:
Cargo Van & Sprinter Insurance – minimum of $300,000 CSL Commercial Auto Liability
Hot Shot Trucking Insurance and Larger Trucks – minimum of $750,000 CSL Commercial Auto Liability
CSL = Combined Single Limit
Starting with the minimum insurance is totally fine to get your authority, but keep in mind that many brokers and customers will want to see proof of $1,000,000 CSL coverage.
That number is important because it gives you way more flexibility with brokers and unlocks better freight opportunities later on.
When you’re crunching the numbers, make sure to check out both the lower liability option and the one million liability option.
What does Commercial Auto Liability cover?
It basically covers two big things: Bodily Injury and Property Damage.
Bodily Injury Liability kicks in if you’re at fault in an accident where someone gets hurt, or worse. It can help cover stuff like medical bills, rehab, long-term care, funeral costs, lost wages, pain and suffering.
Property Damage Liability helps if you damage someone else’s property such as their car, a building, or even their pet! It can cover repairs or replacements of just about anything.
For commercial trucking, these are usually bundled together under something called “CSL” (Combined Single Limits).
What about General Liability?
General Liability and Commercial Auto Liability are two different things.
Commercial Auto Liability covers you while driving your truck and is required by WISDOT & FMCSA to stay legal.
General Liability is for everything off the road, like loading accidents or delivery issues.
Many brokers and customers now ask for this extra GL coverage, so it’s important to know what it is.
While not required by FMCSA for your DOT authority, it’s becoming common enough to get an idea of the cost.
Thankfully it is still priced quite low, so be sure to consider this important addition to your Commercial Auto Liability.
You can learn more at Commercial Truck General Liability Explained.
Will you need Motor Truck Cargo Insurance?
If you’re hauling freight for hire, Yes.
Your brokers and customers will expect you to have Motor Truck Cargo Insurance.
Basically, it protects the freight you’re hauling, but there’s a bit more to it than that.
Take the time to learn more at What Does Motor Truck Cargo Cover?.
Most carriers choose $100,000 coverage limit.
Your Transportation Insurance Expert will chat about what you plan to haul to get you the exact Commercial Cargo Coverage you need.
What about Physical Damage Insurance?
Physical Damage Coverage insures the truck itself and offers two types of protection.
Collision Coverage: Whether you hit another vehicle or object or your truck rolls over, collision covers your repairs or replaces your truck.
Comprehensive Coverage: This covers just about anything collision doesn’t cover. If your truck gets stolen, a tree falls on it, weather damage, animal hits.
Your Physical Damage coverage is based on either your truck’s Actual Cash Value (ACV) or the Stated Amount.
Remember to factor in anything permanently attached when valuing your truck.
Examples of Permanently Attached Equipment on your truck:
- Custom paint, decals, or signs
- Bolted or mounted electronics
- 5th wheel receivers and other coupling devices
- Vacuum equipment and accessories
- Mounted toolboxes, shelving, or ladder racks
- Tarps, chains, binders
You get the idea, just make sure you’ve got the right protection for your truck and everything on it!
Wisconsin Trucking Insurance extras:
Uninsured or Underinsured (UM/UIM)
Ever worry about getting hit by someone with little or no insurance? That’s where UM/UIM coverage comes in handy. It helps cover stuff like medical bills, lost wages, and even pain and suffering if you or your passengers get hurt in an accident. It kicks in if the other driver’s at fault and doesn’t have enough insurance to cover the damage.
Medical Payments (MedPay)
MedPay helps out if you or your passengers get hurt in a trucking accident.
Both UM/UIM and MedPay are budget-friendly add-ons and totally worth including in your insurance plan!
Want to do a little more research before you jump in?
Check out our CIS Trucking Insurance Blog.
It’s packed with answers to questions you probably haven’t even thought of yet 🙂
When you’re ready to talk just give us a call at CIS (330) 864-1511.
Let’s get you all set up so you can hit the ground running!
We are CIS, and We Make Your Truck Insurance Easy!
