How Much Commercial Auto Insurance Do You Need? State Minimums vs. Federal Limits

States set their own minimums. Split limits can be written as three numbers: bodily injury per person, bodily injury per accident and property damage. California's minimum is 30/60/15 in that notation.

These are floors for the vehicle, not a measure of what a business needs. The California DMV adds that its figures do not include "any additional Insurance requirements for Commercial and/or Fleet Vehicles deemed necessary by any Federal, State or Local Agency." For other states, check the state's motor vehicle agency or insurance department, or start from our state guides.

Federal financial responsibility rules apply to for-hire motor carriers transporting property in interstate or foreign commerce, and to carriers of hazardous materials in interstate, foreign or intrastate commerce. They do not apply to vehicles under 10,001 pounds gross vehicle weight rating (GVWR), except when those vehicles carry certain hazardous materials (49 CFR 387.3).

That weight exception covers Subpart A of Part 387, the rules for motor carriers of property, which includes the § 387.9 schedule below. A for-hire carrier that needs federal operating authority still files coverage under a separate subpart, which sets a $300,000 minimum for a fleet of only lighter vehicles (49 CFR 387.303T; see the table below).

Schedule of limits under 49 CFR 387.9

The schedule in 49 CFR 387.9 sets these minimums:

Proof of this coverage is an MCS-90 endorsement issued by an insurer, an MCS-82 surety bond, or FMCSA authorization to self-insure (49 CFR 387.7).

Limits for carriers that file with FMCSA (49 CFR 387.303T)

Common and contract (for-hire) carriers in interstate commerce must file evidence of coverage with the Federal Motor Carrier Safety Administration (FMCSA) before their authority is issued (49 CFR 387.301T). eCFR notes that §387.303 has been suspended indefinitely since 2019. The parallel section, 49 CFR 387.303T, sets these minimums:

Whether your operation needs operating authority, and which row applies, depends on what you haul, where and for whom. Confirm it with FMCSA or a transportation lawyer before you buy.

A contract can require more than the legal minimum, and it can specify how the coverage must be written. One public example: the Superior Court of California, County of Santa Barbara, requires contractors who use a vehicle for its work to carry "automobile liability insurance with limits of not less than $1 million per accident," covering owned, hired and non-owned vehicles (Santa Barbara Superior Court insurance requirements).

The same document lets the contractor meet its limits "through any combination of primary, excess or umbrella insurance" and requires the auto policy to be endorsed to add the court as an additional insured.

Read a contract for four things: the limit, the vehicles it must cover (owned, hired, non-owned), whether umbrella limits count, and any endorsements such as additional insured or waiver of subrogation. The certificate your agent issues reports the policy; it cannot add coverage. Our certificate holder vs. additional insured guide explains what a certificate shows.

California's insurance department explains that personal auto policies separate bodily injury and property damage limits ("split limits"), while business auto policies "commonly utilize a Combined Single Limit (CSL)." Its glossary defines a CSL as bodily injury and property damage liability "expressed as a single sum (limit) of coverage." Coverage can also differ by vehicle, with "covered auto symbols" assigning coverage to each scheduled auto (CDI commercial insurance guide).

When you compare a contract or a state rule with a proposal, compare like with like. As an illustration, a $1,000,000 CSL is not the same as a split limit with a $1,000,000 per-accident bodily injury limit and a separate property damage limit. Ask the agent to show how the proposal meets each requirement.

Keep three questions separate so one answer does not hide another:

The same guide notes that a commercial umbrella "covers the amount of loss above the limits of a basic liability policy," including commercial auto. Our commercial umbrella coverage page explains how underlying limits work.

Here is a hypothetical example. An electrical contractor in North Carolina carries the state's minimum auto limits on two work vans. A new customer contract requires $1,000,000 per accident, covering owned, hired and non-owned vehicles, and allows an umbrella to make up the difference.

The contractor asks its agent for two options: a higher auto limit, and the current auto policy with an umbrella above it. For each, it records the limit wording, the vehicles covered, the endorsements the contract asks for and the premium. It then sends the customer the certificate only after the policy wording matches.

For what a commercial auto policy covers, read the commercial auto coverage page. To gather vehicle and driver details before you ask for proposals, see our commercial auto preparation guide, and compare the offers side by side with the quote comparison worksheet. If you want PolicyBenchmark to follow up about your vehicles, request coverage help.

Sources checked October 3, 2026. State and federal minimums change; confirm the current figure with the agency for your state and operation.