Commercial Auto Insurance
What Are State Minimum Requirements for Commercial Auto Insurance?
State minimums for commercial vehicles are often $100,000–$750,000 depending on vehicle type and use. These minimums are rarely sufficient — most contractors should carry $1M CSL.
What are the minimum commercial auto insurance requirements by state?
Each state sets minimum liability requirements for commercial vehicles. Light commercial vehicles (under 10,001 lbs) typically face state liability minimums of $100,000–$300,000. Heavy vehicles, interstate carriers, and certain cargo types face federal FMCSA minimums that can reach $750,000–$5M.
State minimums represent the legal floor — not the smart floor. A single accident injuring multiple people can easily generate claims of $500K–$2M. Carrying only state minimum coverage leaves your business personally exposed above that threshold.
Trade Safe recommends $1M CSL as the baseline for contractor commercial auto, with umbrella coverage for larger operations or when contracts require higher limits. The cost difference between $300K and $1M coverage is often minimal.
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