Texas Trucking Insurance Requirements

Texas follows federal insurance minimums for interstate carriers. Motor carriers transporting general freight must carry at least $750,000 in primary liability coverage ($1 million for hazmat). For intrastate-only carriers, Texas requires a minimum of $500,000 in liability coverage for vehicles over 26,001 lbs GVWR, as specified in the Texas Administrative Code Title 43, Part 10. The Texas Department of Motor Vehicles requires proof of insurance through Form E filing (BMC-91 for interstate or state-equivalent for intrastate operations). Insurance must be maintained continuously — any lapse triggers automatic suspension of operating authority, and TxDMV will revoke your certificate within 30 days of coverage cancellation. Texas does not allow self-insurance for carriers with fewer than 25 power units.

While federal law does not mandate cargo insurance, Texas shippers and brokers almost universally require it. The standard cargo insurance requirement in the Texas freight market ranges from $100,000 to $250,000 per occurrence. Carriers hauling high-value freight (electronics out of Dallas, oil field equipment from Houston) often need $250,000 or higher. Bobtail insurance covers your truck when driving without a trailer, and non-trucking liability covers personal use. Texas insurers report average cargo premiums of $1,800-$3,500 annually for standard dry van operations. Reefer carriers pay more due to spoilage risk — typically $2,500-$5,000. Owner-operators leased to a carrier should verify whether the carrier's cargo policy covers them or if separate coverage is needed.

Texas is the only state where workers' compensation insurance is not mandatory for most private employers. Motor carriers can choose to be "non-subscribers" to the Texas workers' comp system. However, non-subscribing carriers lose common-law defenses against employee injury lawsuits, meaning injured drivers can sue and potentially win larger settlements. The Texas Department of Insurance recommends carriers with employees obtain workers' comp coverage regardless. For owner-operators classified as independent contractors, occupational accident insurance is the standard alternative, typically costing $150-$400 per month. Some Texas-based carriers require their leased owner-operators to carry occupational accident policies. The Texas Mutual Insurance Company is the state's workers' comp insurer of last resort, accepting carriers that private insurers decline.

Interstate carriers must file Form BMC-91 (surety bond) or BMC-91X (trust fund) with FMCSA, plus Form BOC-3 designating process agents. Texas intrastate carriers file proof of insurance directly with TxDMV when obtaining their motor carrier certificate. All insurance filings are public record and can be verified through FMCSA's SAFER system or TxDMV's online portal. Texas requires 30 days' advance notice for insurance cancellation — your insurer must notify TxDMV before canceling your policy. If you are an owner-operator leased to a carrier, the carrier's insurance generally covers you while under dispatch, but you need your own bobtail and non-trucking liability coverage for off-duty periods. Annual policy reviews are important as Texas premiums have increased 15-25% since 2023 due to nuclear verdict trends in the state.