Commercial Car Insurance Laws by State

Is commercial auto insurance required?

Every state has its own auto insurance requirements for commercial vehicles. In a few cases, you’ll see the same minimum requirements as there are for personal vehicles but, for the most part, commercial limits are higher than personal limits. 

Remember that the state requirement is the minimum amount the state mandates you carry. It’s critical to discuss your coverage with your insurance agent to make sure you have enough coverage since many business owners would be subject to lawsuits if they’re not appropriately insured. 

Why do you need commercial auto insurance?

As well as complying with the law, a commercial auto policy provides the following benefits: 

• Liability protection: Commercial auto insurance provides coverage against bodily injuries, casualties and fatalities in accidents that are your employee’s responsibility. It also covers your business against damage to property that was caused by a crash or collision. Many insurers will also pay for your legal defense.
• Flexible limits: Split limit policies cover you for separate amounts for each person injured, all people injured and all property damaged. Combined single limit policies (CSL) cover you for a total amount for the accident, which can be better. For example, let’s say you have a CSL providing $500,000 of coverage. There’s a crash and the bills come to $400,000 for hospital costs and $100,000 for auto repair costs so you’re fully covered. If you had a split limit policy with a combined total of $250,000 to cover injury costs, you’d be on the hook for $150,000. 
• Medical expenses: Usually, your insurance will pay for the medical costs of a driver and any passengers in a vehicle accident, regardless of whose fault it was.
• Uninsured motorist (UM) and underinsured motorist (UIM) protection: Insurers will meet your medical costs and, depending on the policy, property damage costs if an accident was caused by another driver with insufficient insurance or none at all.
• Vehicle damage: Depending on the specifics in your policy, the cost of damage to your car caused by incidents like fire, flood, vandalism and theft will be met by your insurance company.

What do states require for commercial auto insurance?

The type of vehicle you have may impact a state’s commercial auto insurance requirements. Passenger vehicles usually have one type of requirement while freight and cargo vehicles have another. You’ll be subject to stricter requirements in most states if you transport hazardous materials.  

Please scroll down to see how the rules apply to you. Below are details of the commercial and personal car insurance laws for each state.

What happens if I drive outside my state?

If you transport people or materials across state lines, your state insurance goes with you. In most instances, if the state limits where the car is registered are less than the state limits where you’ll be driving, the insurance carrier will match the limits so you meet the legal requirements. 

Some states have interstate coverage requirements you must meet if you cross state borders when transporting people or goods. Make sure to stay within coverage territories and note that limits may change once you drive into Mexico or Canada. 

How much does commercial auto insurance cost?

The average annual cost of auto insurance is around $1,750. The actual amount you’ll pay will depend on several factors, including your coverage limit, your industry, the level of vehicle use and how many claims you’ve made in the past.

Contactors, vehicle hire businesses and tow truck operators should expect to pay substantially more.

You can reduce premium costs with a higher commercial auto deductible. This means that if one of your vehicles is involved in a crash, you get smaller payouts for your insurer.

Commercial auto insurance coverage types

There are two different ways that states can require coverage. 

Per person, per accident and property damage

The first coverage type sets per person, per accident and property damage individual limits. When reviewing your coverage limits in this scenario, you may see three numbers representing your total coverage, similar to your personal auto insurance. Each number covers an accident differently. For example, you might see coverage limits that look like this: 25/50/10. Those numbers represent dollar amounts multiplied by 1,000:

• The first number, 25, is $25,000. This is for bodily injury coverage per person. This is the total amount the policy will pay for a person injured in an accident you cause. 
• The second number, 50, is the total amount the insurance company will pay for all injuries in the accident. So, if you hit a vehicle with four people in it, the policy will pay only up to $50,000 for the aggregate total of injuries. 
• The last number, 10, represents the policy’s property damage coverage. In this case, the policy will pay up to $10,000 in property damage to another car or structure you hit. 

CSL coverage

In the second type of coverage requirement, the amount of coverage is listed as a single limit, known as a CSL. This is the most an insurance company will pay per accident.  

Commercial auto requirements by state

Take a look at your state’s requirements in the compilation below. 

Alabama commercial auto insurance requirements

In Alabama, the minimum liability coverage for commercial auto policies is 25/50/25. 

If your vehicle has a United States Department of Transportation (USDOT) or motor carrier (MC) number, you’ll need extra insurance coverage. Semi-trucks and other large vehicles traveling between states usually require at least $750,000 in CSL coverage to meet Federal Motor Carrier Safety Administration (FMCSA) rules.

If you’re operating a passenger-carrying vehicle in Alabama, your insurance requirements are:

• 1-5 passengers: 25/50/10
• 6-20 passengers: 50/200/30
• 21 or more passengers: 100/500/50

Nonhazardous property carriers in Alabama must have a liability coverage of 100/300/50.

Learn more about Alabama motor carrier regulations. 

Alaska commercial auto insurance requirements

Alaska requires all commercial auto policies to have a minimum liability limit of 50/100/25. 

Passenger-carrying vehicles need insurance with bodily injury coverage of $500,000 and property damage coverage of $200,000.

Insurance policies for property carriers in the state are $500,000 of bodily injury coverage and $200,000 of property damage coverage.

Learn more about the Alaska commercial motor vehicle law. 

Arizona commercial auto insurance requirements

The minimum liability limit for commercial auto policies in Arizona is set at a 25/50/15 split.

If you’re transporting passengers in Arizona, these are your minimum insurance coverage levels:

• 1-8 passengers: $250,000 CSL: $250,000 UM
• 9-15 passengers: $750,000 CSL: $300,000 UM
• 16 or more passengers: $5 million CSL: $300,000 UM

For vehicles transporting property or nonhazardous materials, the minimum insurance levels are:

• 20,001-26,000 pounds: $300,000 CSL
• More than 26,000 pounds: $750,000 CSL

If you’re transporting hazardous material, you need insurance with a $1 million CSL or a $5 million CSL, depending on the substance.

Learn more about Arizona’s financial responsibility law. 

Arkansas commercial auto insurance requirements

Arkansas’s commercial auto policy minimum liability limit is 25/50/25. If you lease or finance a vehicle in the state, you typically must have collision and comprehensive insurance to protect the vehicle.

If you provide passenger transportation services, the following are the minimum insurance criteria:

• 1-12 passengers: 50/80/30
• 13-20 passengers: 50/120/30
• 21-30 passengers: 50/160/30
• 31 or more passengers: 50/200/30

For vehicles carrying property and nonhazardous transport vehicles, the minimum liability coverage is 50/100/30.

If transporting hazardous material, you’ll need coverage of between $1 million to $5 million, depending on the materials you’re carrying.

Learn more about Arkansas’ laws on passenger and freight transport. 

California commercial auto insurance requirements

California has a minimum liability limit of 15/30/5 on commercial auto policies. Vehicles with a USDOT or MC number crossing state lines must have a CSL of no less than $750,000.

Passenger-carrying transport operators need to insure to the following minimums:

• 1-7 passengers: $750,000 CSL
• 8-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

Businesses transporting property or nonhazardous goods by vehicle must comply with these requirements:

• Household goods carriers: 250/500/100 or $600,000 CSL
• Vehicles less than 10,000 pounds: $300,000 liability coverage
• Vehicles 10,000 pounds or more: $700,000 single limit

For intrastate motor carriers transporting petroleum/waste petroleum products, you must have minimum insurance of 500/1,000/200 (other than property being transported) or a $1.2 million CSL. 

Hazardous substance carriers are subject to federal regulations that require a $1 million or $5 million CSL depending on what’s being transported.

Learn more about California’s motor carrier regulations. 

Colorado commercial auto insurance requirements

In Colorado, the minimum liability coverage is 25/50/15. Vehicles with a USDOT or MC number operating across state lines must have at least $750,000 in CSL coverage under FMCSA rules.

If you transport passengers in the state, your insurance policy minimums are:

• 1-8 passengers: $500,000 CSL
• 9-15 passengers: $1.5 million CSL
• 16-32 passengers: $3 million CSL
• 33 or more passengers: $5 million CSL

The rules regarding common and contract carriers and limited regulation carrier vehicles transporting property and nonhazardous goods are:

• Movers: $750,000 if your truck is 10,000 pounds or more in gross vehicle weight (GVW) rating and $300,000 if under 10,000 pounds.
• Towing carriers: $750,000 CSL

Property carrier requirements are:

• Less than 10,000 pounds: $300,000 CSL
• 10,000 pounds or more: $750,000 CSL
• Towing carriers: $750,000 CSL

Learn more about Colorado motor vehicle laws. 

Connecticut commercial auto insurance requirements

In Connecticut, the minimum liability coverage for commercial auto policies is a 25/50/25 split. The state also requires that you have UM and UIM coverage.

If you operate passenger-carrying vehicles in the state, your minimum insurance requirements are:

• 1-7 passengers: 50/100/10 or $100,000 CSL
• 8-12 passengers: 50/150/10 or $150,000 CSL
• 13-20 passengers: 50/200/10 or $200,000 CSL
• 21-30 passengers: 50/250/10 or $250,000 CSL
• 31 or more passengers: 50/300/10 or $300,000 CSL

For livery transport: 

• 1-14 passengers: $1.5 million CSL
• 15 or more passengers: $5 million CSL

Vehicles used to transport property require the following minimum levels of insurance:

• 200/600/100

Learn more about Connecticut’s motor carrier regulations.

Delaware commercial auto insurance requirements

Delaware law requires that commercial auto policies have a minimum liability limit of 25/50/10. As a “no-fault state,” your insurance company will pay a portion of your damages through your mandatory personal injury protection (PIP) coverage, regardless of fault. However, you can still sue if your medical expenses exceed a certain amount.

If you’re transporting passengers, your vehicles must have the following minimum insurance:

• Taxicabs: Bodily injury $26,000 and property damage $11,000
• Limousines and charter buses: Bodily injury $11,000 and property damage $51,000
• School buses: Bodily injury/property damage $1 million CSL and PIP injury protection 100/300

The requirements for vehicles carrying property and nonhazardous transport are:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous material transport in Delaware, you need coverage of a $1 million or $5 million CSL, depending on the substance. 

Learn more about Delaware’s motor vehicle laws.

Florida commercial auto insurance requirements

Florida’s minimum liability limits are a 10/20/10 split. The state also requires you to have a PIP of $10,000. 

Nonpublic sector buses in Florida are required to have a minimum liability coverage of $300,000 as a CSL or 100/300/50 or as a split liability policy.

The requirements for property carriers in Florida are based on vehicle weight:

• 26,000-34,999 pounds: $50,000 CSL
• 35,000-43,999 pounds: $100,000 CSL
• 44,000 or more pounds: $300,000 CSL

Learn more about Florida’s Insurance Requirements.

Georgia commercial auto insurance requirements

Georgia mandates a minimum liability limit on all commercial auto policies of 25/50/25.

Passenger transportation providers are required to vehicle insurance with the following minimum split liabilities.

• 1-12 passengers: 100/300/50
• 13 or more passengers: 100/500/50

Intrastate motor carriers in Georgia need to take out split liability insurance with minimums of 100/300/50.

Learn more about Georgia’s passenger carrier laws. 

Hawaii commercial auto insurance requirements

Hawaii’s split liability minimums on commercial auto policies are 20/40/10. You’ll also need to take out PIP coverage if you drive in the state.

If you operate passenger-carrying vehicles on the islands, your insurance minimums are:

• 1-7 passengers: 100/200/50
• 8-25 passengers: 100/500/50
• 26 or more passengers: 100/1,000/50

Property carriers in Hawaii must have a liability coverage of at least 250/750/250.

Learn more about Hawaii’s motor vehicle insurance information. 

Idaho commercial auto insurance requirements

The minimum liability limit for commercial auto policies in Idaho is 25/50/15. There is a requirement to take out UM and UIM coverage but you can opt out of this in writing.

Passenger transportation companies are required by law to take out insurance with the following minimum liability coverage:

• 1-24 passengers: $1.5 million CSL
• 25 or more passengers: $5. million CSL

For property carriers carrying nonhazardous materials, you’ll need a minimum of $750,000 CSL. For hazardous substance carriers in Idaho, you’re required to insure your vehicles to $1 million or $5 million as a CSL, depending on what you’re transporting.

Learn more about Idaho’s motor vehicle laws.

Illinois commercial auto insurance requirements

Illinois commercial auto policies law requires a minimum liability limit coverage of 25/50/20. The state also requires you to take out UM bodily injury and UIM insurance.

If you’re transporting passengers in the state, your liability minimums are:

• 10-13 passengers: $1 million bodily injury/$100,000 property damage
• 14-20 passengers: $1.5 million bodily injury/$100,000 property damage
• 21-30 passengers: $2 million bodily injury/$100,000 property damage
• 31 or more passengers: $3 million bodily injury/$100,000 property damage
• Medical transport vehicles and other for-hire transport: $250,000 bodily injury/$50,000 property damage or $300,000 CSL

Property and nonhazardous goods transport operators have the following minimum limits:

• Property carriers: $75,000 CSL
• Tow truck operations: $500,000 CSL

For hazardous substance carriers in Illinois, you’ll need a CSL policy of $1 million or $5 million, depending on the materials you’re transporting.

Learn more about the Illinois vehicle code. 

Indiana commercial auto insurance requirements

Indiana requires all commercial auto policies to have a minimum liability limit of 25/50/25. There is mandatory UM and UIM coverage in the state but you can opt out of it.

Passenger transport companies must take on liability insurance on their vehicles with these minimums:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Contract carriers transporting railroad employees: $5 million CSL

Insurance requirements for vehicles carrying property and nonhazardous goods are:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous substance carriers, the required minimum coverage is $1 million or $5 million as a CSL, depending on the substance.

Learn more about Indiana’s fleet statutes. 

Iowa commercial auto insurance requirements

In Iowa, the minimum liability coverage for commercial auto policies is a 20/40/15 split.

Passenger transport operators need to take out insurance on their vehicles with the following minimum liability levels:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Taxicabs 1-6 passengers and not operating on a regular route or between specified points: $1,001,000 CSL

Property and nonhazardous transport vehicles in Iowa have these requirements:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous substance carriers, you need liability coverage of $1 million or $5 million as a CSL, depending on the substance being transported. 

Learn more about Iowa’s motor carrier insurance law. 

Kansas commercial auto insurance requirements

Kansas commercial auto policies are set at minimum liability limit levels of 25/50/25. You’ll also need to take out PIP, UM and UIM coverages.

If you use vehicles to transport passengers or property, your insurance levels must be at least 100/300/50.

Learn more about Kansas’ motor carrier regulations.

Kentucky commercial auto insurance requirements

The minimum liability limit for commercial auto policies in Kentucky is 25/50/25 split and you’ll need PIP coverage.

Passenger-carrying vehicles in Kentucky have the following split liability minimums:

• 1-7 passengers: 100/300/50
• 8 or more passengers: 100/600/50

Vehicles used for property and nonhazardous transport in Kentucky must meet these requirements:

• Motor vehicles with a GVW of 18,000 pounds or less: 100/300/50 liability coverage
• Motor vehicles with a GVW over 18,000 pounds: 100/600/50 liability coverage
• Motor carriers of petroleum or petroleum products in amounts less than 10,000 pounds: 100/300/50 liability coverage

In Kentucky, motor carriers transporting less than 10,000 pounds of petroleum and petroleum products need 100/300/50 minimum coverage on their policies. Those carrying other hazardous materials require a $1 million CSL.

Learn more about Kentucky’s commercial vehicle law. 

Louisiana commercial auto insurance requirements

Louisiana mandates a minimum liability limit of 15/30/25 on commercial auto insurance policies. Interstate semi-trucks and other large vehicles with a USDOT or MC number are required to have insurance with a minimum CSL of $750,000.

For passenger-carrying vehicles (including buses) and trucks, the insurance liability minimum requirement is 250/500/10. Tow trucks or wreckers in Louisiana require a $500,000 CSL.

Learn more about Louisiana’s motor vehicle law.

Maine commercial auto insurance requirements

Maine’s minimum insurance liability limits are 50/100/25. You also need to take out UM, UIM and medical payments coverage.

Passenger-carrying transport operators have the following requirements:

• School bus seating 1-30: $500,000 CSL
• School bus seating more than 30: $1 million CSL
• Interstate vehicles seating 1-3 passengers: 50/100/25 or $125,000 CSL
• Intrastate vehicles seating 4-7 passengers: $300,000 CSL
• Intrastate vehicles seating 8-15 passengers: $750,000 CSL
• Intrastate vehicles seating 16-30 passengers: $1.5 million CSL
• Intrastate vehicles seating more than 30 passengers: $2 million CSL

If you carry interstate passengers, you’ll need:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

If you’re transporting property or nonhazardous goods, your minimum insurance limits are:

• Property carriers: $350,000 single limit
• Rental vehicles: 50/100/25 liability coverage
• Rental trucks with a registered gross weight of 26,000 pounds or less, rented or leased for fewer than 30 days: $125,000 single limit or 50/100/25 liability coverage

Learn more about Maine’s financial responsibility law. 

Maryland commercial auto insurance requirements

Maryland commercial auto policies have a minimum liability limit of 30/60/15 with a requirement to take out UM coverage.

The state requires all passenger transportation providers to meet the following criteria:

• 1-7 passengers: 50/100/20 or $120,000 CSL
• 8-15 passengers: 75/200/50 or $250,000 CSL
• 16 or more passengers: 75/400/100 or $500,000 CSL
• Taxicabs: 25/50/10

Vehicles carrying hazardous materials need insurance with a CSL of $1 million or $5 million, depending on the materials being transported.

Learn more about Maryland’s transportation laws.

Massachusetts commercial auto insurance requirements

In Massachusetts, the split is 20/40/5 split and drivers are required to take out PIP and UM coverage.

Passenger-carrying vehicle operators require insurance that complies with the following minimums:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Sightseeing or charters with seating for fewer than 32 passengers: $1.5 million CSL

For vehicles carrying property and nonhazardous goods, you’ll need:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous substance carriers, the required minimum coverage is a $1 million or $5 million CSL, depending on the substance you’re transporting.

Learn more about Massachusetts law. 

Michigan commercial auto insurance requirements

Michigan commercial auto policies have minimum liability limits of 50/100/25. Drivers also must take out PIP, property protection insurance and residual liability insurance.

Passenger transportation companies in Michigan must meet the following minimal coverages:

• 1-9 passengers: $1 million CSL
• 10-15 passengers: $2 million CSL
• 16 or more passengers: $5 million CSL plus property protection
• Limousines: $1 million CSL
• Taxicabs: $300,000 CSL

For vehicles transporting property or nonhazardous goods, the requirements are:

• Freight vehicles of 10,000 pounds or more: $500,000 CSL
• Freight vehicles under 10,000 pounds: 100/300/50 liability coverage

Freight vehicles in Michigan, regardless of weight, require a $1 million CSL if they’re transporting hazardous materials.

Learn more about Michigan’s motor bus law and its Limousine, Taxicab and Transportation Network Company Act. 

Minnesota commercial auto insurance requirements

Minnesota has a 30/60/10 split and requires drivers to take out a minimum of $40,000 in PIP as well as UM and UIM insurance.

If you’re transporting passengers, your vehicles will need to be insured to the following minimums:

• 1-15 passengers: $1,501,000 CSL, including limousines
• 16-plus passengers: $5.1 million CSL
• Limousines have a separate minimum insurance requirement of an aggregate coverage of at least $1.6 million for bodily injury and $101,000 for property damage.

Nonhazardous transport vehicles must be insured to a minimum of 100/300/50. For vehicles carrying hazardous materials, you’ll need a CSL of $1 million or $5 million, depending on what you’re transporting.

Learn more about Minnesota’s Motor Carrier Financial Responsibility Law.

Mississippi commercial auto insurance requirements

Mississippi’s minimum liability limits are 25/50/25 for commercial auto insurance.

If you provide passenger transportation in Mississippi, your insurance requirements are:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

Vehicles carrying property and nonhazardous goods have the following minimum insurance requirements:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For vehicles carrying hazardous substances, you’re required to have a $1 million or $5 million CSL policy, depending on the substance being transported.

Learn more about Mississippi’s financial responsibility law.

Missouri commercial auto insurance requirements

Passenger-carrying transport operations in Missouri must meet the following minimum insurance requirements:

• Interstate for 1-15 passengers: $1.5 million CSL
• Interstate for 16 or more passengers: $5 million CSL
• Intrastate for 1-12 passengers: 100/300/50
• Intrastate for 13 or more passengers: 100/500/50

For vehicles carrying property and nonhazardous goods, the requirements are:

• Interstate property carriers with a gross weight of 10,000 or more: $750,000 liability coverage
• Intrastate property carriers (except hazardous waste): 100/300/50 liability coverage
• Tow trucks: $500,000 CSL

For hazardous substance carriers in Missouri, your required minimum coverage level is a $1 million or $5 million CSL policy, depending on the substance.

Learn more about Missouri’s transport and tow truck laws.

Montana commercial auto insurance requirements

Montana’s minimum liability limit for commercial auto insurance is 25/50/20.

For companies operating passenger-carrying transport, your insurance will need to be at least:

• 1-7 passengers: $100,000 CSL
• 8-15 passengers: $500,000 CSL
• 16-26 passengers: $750,000 CSL

For companies transporting property and nonhazardous goods, your requirements are: 

• Under 10,000 pounds: $100,000 CSL
• 10,000 pounds or more: $500,000 CSL

For tow trucks, you’ll need:

• Class A: $300,000 CSL
• Class B: $500,000 CSL
• Class C: $750,000 CSL

Learn more about Montana’s motor carrier insurance law.

Nebraska commercial auto insurance requirements

In Nebraska, the minimum liability coverage for commercial auto policies is 25/50/25 with a requirement that you also take out UM and UIM coverage.

Nebraskan passenger transport company vehicles require coverage of at least:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Taxis and limousines: $500,000 CSL

Carriers of household goods (group 2) must have CSL liability coverage of $750,000.

Learn more about Nebraska’s motor carrier safety rules and regulations. 

Nevada commercial auto insurance requirements

In Nevada, the minimum liability coverage for commercial auto policies is a 25/50/20 split.

If you use your vehicles to transport passengers, they must be insured to the following minimum levels:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Taxicabs and horse-drawn vehicles: 250/500/50

For vehicles transporting property or nonhazardous materials, your requirements are:

• Nonhazardous property carriers: $500,000 or $750,000 CSL, depending on specifics
• Freight carriers with GVW 10,001 to 26,000 pounds: $300,000 CSL
• Freight carriers with GVW 26,001 to 80,000 pounds: $750,000 CSL

For hazardous property carriers in Nevada, the required coverage is either 300/2,500/1,000 or 300/2,500/5,000, depending on the specifics of the materials being transported.

Learn more about Nevada’s motor carrier laws. 

New Hampshire commercial auto insurance requirements

New Hampshire commercial auto policies have a legal minimum liability limit of 25/50/25. You’re also required to take out UM and UIM insurance.

Passenger-carrying vehicle split liability insurance policy minimums are:

• 1-7 passengers: 100/700/100
• 8-12 passengers: 100/1,500/100
• 13 or more passengers: 100/5,000/100

For vehicles used to transport property and nonhazardous, the minimum levels of insurance are:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

Hazardous substance vehicles require a policy with a $1 million or $5 million CSL, depending on the substance.

Learn more about New Hampshire’s motor vehicle laws.

New Jersey commercial auto insurance requirements

The minimum liability limit on New Jersey commercial auto insurance policies is 15/30/5 with a requirement to take out PIP coverage.

Passenger transportation providers’ insurance liability minimums are:

• 1-12 passengers: 25/100 bodily injury; 10/25 property damage
• 13-20 passengers: 25/200 bodily injury; 10/25 property damage
• 21-20 passengers: 25/400 bodily injury; 10/25 property damage
• 31 or more passengers: 25/600 bodily injury; 10/25 property damage
• Autocabs (limousines or livery service): $1.5 million CSL
• Jitneys (shared taxis that are for hire): 10/100/5 

Tow truck insurance requirements are based on their GVW:

• Up to 26,000 pounds: $750,000 CSL
• 26,000 pounds or more: $1 million CSL
• Garage keepers liability: $100,000 CSL

Learn more about New Jersey’s motor vehicle law. 

New Mexico commercial auto insurance requirements

The minimum liability limit for commercial auto policies in New Mexico is 25/50/10.

Passenger-carrying vehicles in New Mexico are subject to the following insurance liability minimums:

• 1-6 passengers: $1 million CSL
• 7-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

For vehicles transporting property or nonhazardous goods, the requirements are:

• Household goods: $750,000 liability coverage
• Carriers of property/towing services: $750,000 CSL

For hazardous material transport in New Mexico, the required coverage is $5 million.

Learn more about New Mexico’s commercial vehicle rules. 

New York commercial auto insurance requirements

New York requires all commercial auto policies to have a minimum liability limit of 25/50/10. They also require you to take out a minimum of $50,000 in basic PIP as well as UM coverage.

Passenger transportation providers in New York must insure their vehicles to these minimums:

• 1-12 passengers: 100/300/50
• 12 or more passengers: 100/500/50

Liability coverage on insurance policies taken out by common and contract motor carriers of property must be at least 100/300/50.

For hazardous materials carriers, you’ll need a policy that includes a $1 million or $5 million CSL, depending on what you’re transporting.

Learn more about New York commercial vehicle requirements. 

North Carolina commercial auto insurance requirements

The minimum liability limits on North Carolina commercial auto policies are 30/60/25 with a requirement to also take out PIP, UM and UIM coverage.

For passenger-carrying vehicles in the state, the requirements are:

• 1-15 passengers: $1.5 million CSL
• 15 or more passengers: $5 million CSL
• School buses: $1 million to $1.5 million CSL
• Taxis: 100/300/50

Minimum liability limits on vehicles transporting household goods are based on GVW:

• 26,000 pounds or less: 100/300/50 liability coverage (or a higher amount as may be required by federal law)
• Over 26,000 pounds: $750,000 CSL

Learn more about North Carolina’s motor vehicle regulations. 

North Dakota commercial auto insurance requirements

North Dakota law requires that all commercial auto policies have a minimum liability limit of 25/50/25. The state also requires business users to take out UM and UIM insurance.

Passenger transportation service providers in North Dakota need to meet the following insurance criteria:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

Vehicles transporting property and nonhazardous goods in North Dakota have the following minimums:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous substance carriers in North Dakota, the required coverage is a policy with a $1 million or $5 million CSL, depending on the substance being transported.

Learn more about North Dakota’s carriage of persons law. 

Ohio commercial auto insurance requirements

The minimum liability limit for commercial auto policies in Ohio is set at 25/50/25.

Passenger-carrying transport operators’ minimum insurance liability requirements are:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Intrastate for-hire carriers, no passengers: $751,000 CSL

For hazardous material transport, vehicles required a CSL minimum of $1 million or $5 million, depending on the substance in transit.

Learn more about Ohio’s motor carrier regulations. 

Oklahoma commercial auto insurance requirements

Oklahoma commercial auto policies must provide a minimum 25/50/25 liability.

For passenger-carrying transport, your insurance will need to satisfy the following conditions:

• 1-6 passengers: $100,000 CSL
• 7-9 passengers: $750,000 CSL
• 10-15 passengers: $1 million CSL
• 16 or more passengers: $5 million CSL

For property carriers, the minimums are:

• Under 10,000 pounds: $300,000 CSL
• 10,000 pounds or more: $750,000 CSL
• Household goods: $750,000 CSL
• Carriers of restricted property, including sand, rock, gravel and more: $350,000 CSL

For hazardous material transport in Oklahoma, you’ll need a policy with a $1 million to $5 million CSL, depending on the substance.

Learn more about Oklahoma’s motor carrier and private carrier regulations. 

Oregon commercial auto insurance requirements

Oregon requires all commercial auto policies to have a minimum liability limit level of 25/50/20. You also need PIP, motorist bodily injury and UIM coverage.

Passenger-carrying vehicles and property-carrying vehicles both have a liability coverage requirement of $750,000 in hazardous material transport in Oklahoma, you’ll need a policy with a $1 million to $5 million CSL.

Learn more about Oregon’s motor carrier liability laws. 

Pennsylvania commercial auto insurance requirements

Pennsylvania requires all commercial auto policies to have minimum split liability limits of 15/30/5.

If you’re transporting passengers in the state, your vehicles must be insured to the following minimums:

• 1-15 passengers: 15/30/5 
• 16-28 passengers: $1 million CSL
• 29 or more passengers: $5 million CSL

Property carriers must have liability coverage of a minimum of $300,000 CSL.

Learn more about Pennsylvania’s financial responsibility laws.

Rhode Island commercial auto insurance requirements

In Rhode Island, the minimum liability coverage for commercial auto policies is a 25/50/25 split.

Passenger-carrying transport vehicles have the following minimum requirements:

• Public motor vehicles (excludes charter carriers): $1.5 million bodily injury: $100,000 property damage
• Common and contract carriers: 250/500/25 liability coverage
• Taxicabs and public livery: $300,000 CSL or 250/500/100 split limit
• Jitneys: $300,000 CSL or equivalent split limit

Common and contract carriers in Rhode Island must have liability coverage of 250/500/25.

Public motor vehicles in Rhode Island require $1.5 million in bodily injury and $100,000 in property damage coverage.

Learn more about Rhode Island’s financial responsibility laws.

South Carolina commercial auto insurance requirements

South Carolina requires all commercial auto insurance policies to carry a 25/50/25 minimum liability limit split as well as UM coverage.

Passenger transportation providers must comply with the following insurance criteria:

• 1-15 people (interstate): $1.5 million CSL
• 16 or more (interstate): $5 million CSL
• 1-7 people (intrastate): 25/50/25
• 8-15 people (intrastate): 25/100/25
• 16 or more people (intrastate): 25/300/25

For vehicles carrying property and nonhazardous goods, the minimums are:

• Public Service Commission (intrastate) for freight under 10,000 pounds: $500,000 single limit
• Public Service Commission (intrastate) for 10,000 pounds or more GVW: $750,000 single limit
• Interstate (Department of Public Safety) for GVW 10,000 pounds or more: $750,000 liability coverage
• Interstate (DPS) for freight GVW less than 10,000 pounds: $300,000 liability coverage

For vehicles transporting hazardous material, you need:

• Public Service Commission (intrastate) for freight under 10,000 pounds: $5 million liability coverage
• Public Service Commission (intrastate) for 10,000 pounds or more GVW: $5 million liability coverage
• Interstate (DPS) for GVW 10,000 pounds or more: $1 million or $5 million, depending on the substance
• Interstate (DPS) for freight GVW less than 10,000 pounds: $5 million liability coverage

Learn more about South Carolina’s financial responsibility laws. 

South Dakota commercial auto insurance requirements

The minimum liability limit for commercial auto policies in South Dakota is 25/50/25 with a requirement to take out coverage against uninsured UM and UIM.

If you’re operating passenger-carrying vehicles, your minimum levels are:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

Property and nonhazardous transport vehicles have the following insurance requirements:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

Hazardous substance carriers require a minimum coverage of $1 million or $5 million CSL, depending on the substance.

Learn more about South Dakota’s financial responsibility laws. 

Tennessee commercial auto insurance requirements

Tennessee’s minimum liability limit splits on commercial auto policies are 25/50/15.

Passenger transportation companies in Tennessee must meet the following minimums:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

Property carrier vehicle operators’ minimum liability coverage per vehicle is $750,000 CSL. For vehicles under 10,000 pounds, the limit is $300,000.

A $1 million to $5 million CSL is required for hazardous materials carriers in Tennessee. The actual level depends on the materials being transported.

Learn more about Tennessee’s financial responsibility laws. 

Texas commercial auto insurance requirements

Texas requires all commercial auto policies to have a minimum liability limit of 30/60/25. There is also a mandatory requirement to take out PIP; however, you can avoid this by signing a waiver.

For passenger-carrying vehicles in the state, the minimums are:

• 16-26 passengers: $500,000 CSL
• 27 or more passengers: $5 million CSL

Vehicles used for property and nonhazardous transport in Texas require insurance policies with liabilities of at least the following:

• 26 pounds or less: $300,000 CSL
• Over 26 pounds: $500,000 CSL

Hazardous materials carriers require minimum insurance coverage of $1 million or $5 million CSL, depending on the materials being transported.

Learn more about Texas’ motor carrier insurance requirements. 

Utah commercial auto insurance requirements

Utah’s minimum liability limits are 25/65/15. Drivers are also required to take out PIP.

Passenger transport operator minimum requirements are:

• 1-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL

The minimums for vehicles transporting property and nonhazardous goods in Utah are:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous substance carriers in Utah, the required coverage is $1 million or $5 million CSL, depending on the substance being transported.

Learn more about Utah’s requirements for motor carriers.

Vermont commercial auto insurance requirements

In Vermont, the minimum liability coverage for commercial auto policies is set at a 25/50/10 split. This also must include coverage against uninsured UM and UIM.

Passenger-carrying transport operators in the state are required to take out policies with the following minimums:

• 1-7 passengers: 50/100/50
• 8-12 passengers: 50/250/50
• 13-20 passengers: 50/300/50
• 21-30 passengers: 50/350/50
• 31 or more passengers: 50/300/50

For school buses, the requirement is:

• 1-9 passengers: 100/300/50
• 10 or more passengers: 300/500/50

When operating a vehicle you use for property or nonhazardous goods transport in Vermont, buy insurance that meets the following:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For vehicles carrying hazardous substance carriers, the required minimum level of coverage is $1 million or $5 million CSL, depending on the substance being transported.

Learn more about Vermont’s financial responsibility laws. 

Virginia commercial auto insurance requirements

Virginia’s split is 25/50/20 and policies must provide coverage for UM and UIM.

For passenger-carrying transport in Virginia, your insurance will need to satisfy the following conditions:

• 1-6 passengers: $350,000 CSL
• 7-15 passengers: $1.5 million CSL
• 16 or more passengers: $5 million CSL
• Taxicabs: $125,000 CSL

For vehicles you use to transport property or nonhazardous materials, the requirements are:

• Intrastate property carriers: $750,000 liability coverage
• Vehicles with GVW over 10,000 pounds: $750,000 liability coverage
• Vehicles with GVW in excess of 7,500 but less than 10,000: $300,000 liability coverage
• Household goods carriers: $750,000 liability coverage

Learn more about Virginia’s insurance regulations. 

Washington commercial auto insurance requirements

The minimum liability limit for commercial auto insurance in Washington is 25/50/10 with a requirement for policies to provide UM and PIP coverage.

Passenger-carrying vehicles in Washington must meet the following minimums:

• 1-15 passengers: 101/301/51 liability coverage
• 16-plus passengers: 101/501/51 liability coverage
• Auto transportation companies, 1-16 passengers: $1,501,000 CSL
• Auto transportation companies, 17-plus passengers: $5 million CSL
• Private nonprofit bus transportation providers, 1-15 passengers: $501,000 CSL
• Private nonprofit bus transportation providers, 16-plus passengers: $1 million CSL

The minimum liability coverage for vehicles transporting property and nonhazardous transport is:

• Trucks hauling household goods under 10,000 pounds: $300,000 CSL
• Trucks hauling household goods 10,000 pounds or more: $750,000 liability coverage
• Property nonhazardous over 10,000 pounds: $750,000 CSL

For vehicles under 10,000 pounds, the minimum CSL insurance requirement is $300,000. For garbage and refuse collection vehicles, it’s $1 million or $5 million, depending on the substance being transported.

Learn more about Washington’s motor carrier insurance regulations. 

Washington, D.C., commercial auto insurance requirements

For passenger-carrying transport in Washington, D.C., the minimum insurance requirements are:

• Taxicabs: 26/51/11
• Seating capacity of 15 or less: $1.5 million CSL 
• Unrestricted seating capacity: $5 million CSL

For property and nonhazardous transport, they are:

• Under 10,000 pounds: $300,000 CSL
• 10,001 pounds or greater: $750,000 CSL

For hazardous material transport in Washington, D.C., you’re required to have minimum coverage of $1 million or $5 million on a CSL policy, depending on the substance.

Learn more about Washington, D.C.’s laws.

West Virginia commercial auto insurance requirements

West Virginia requires all commercial auto policies to have a minimum liability limit of 25/50/25. They also require UM insurance to provide protection against accidents caused by uninsured or hit-and-run drivers.

For passenger-transport vehicles in the state, vehicles must be insured to the following minimums:

• 1-5 passengers: 100/200/25
• 6-12 passengers: 200/500/25
• 13-20 passengers: 200/600/50
• 21-30 passengers: 200/750/50
• 31 or more passengers: 200/900/75

Nonhazardous property carriers are required to have minimum liability coverage of 200/600/100.

Learn more about West Virginia’s motor carrier rules. 

Wisconsin commercial auto insurance requirements

Wisconsin’s minimum liability limit on commercial auto policies is 25/50/10.

For passenger-carrying vehicles, the minimal requirements are:

• 1-7 passengers: 100/300/50
• 8-12 passengers: 100/350/50
• 13-20 passengers: 100/400/50
• 21-30 passengers: 100/450/50
• 31 or more passengers: 100/500/50
• School buses with 37 or more passengers: $1 million CSL

Vehicles used to transport property and nonhazardous in Wisconsin must have the following:

• Vehicles under 10,000 pounds: $300,000 CSL
• Vehicles over 10,000 pounds: $750,000 CSL

Vehicles transporting hazardous substances need a minimum coverage of $1 million or $5 million CSL, depending on the type of substance.

Learn more about Wisconsin’s motor carrier insurance regulations.

Wyoming commercial auto insurance requirements

The minimum liability limit for commercial auto policies in Wyoming is 25/50/20.

Wyoming requires businesses to take out a policy that covers bodily injury and property damage up to the sum of $750,000 or more if federal law requires it.

Learn more about Wyoming’s financial responsibility requirements. 

Kimberlee Leonard contributed to this article.