How Much Insurance Is A Trucking Company Required To Have In North Carolina?
Key Takeaways:
- The answer to how much insurance must NC trucking companies carry is the minimum amount of $750,000 for freight trucks.
- A truck that hauls oil has a $1 million requirement, while a truck carrying other highly hazardous cargo has a $5 million requirement. Â
- The federal liability limit for hoisting interstate freight applies to NC intrastate trucking as well; there is no exception for purely local carriers.
- The minimum liability amount was established in 1980 and has not increased for inflation since then.
- The liability minimum on file is not the only coverage available. There are layers of coverage, and finding additional layers is the primary focus of the lawyer.
If you are wondering, “How much insurance is a trucking company required to have in North Carolina? The answer is to operate legally, with a minimum liability of $750,000. However, this figure is changed by two factors, which are what a truck carries and the weight of the truck.
The federal government establishes the minimums for trucks in all states, including North Carolina, where the minimum has been established for all trucks within the state. For example, a semi-truck driving freight from California to Tennessee via I-40 has the same $750,000 required minimum amount of liability insurance, regardless of whether the truck is traveling within the state of North Carolina or going outside the state to Tennessee. The only exception is when the truck is carrying hazardous materials, in which case the Hazmat truck insurance requirements can be as much as $5,000,000.
The exact amount of money and the requirements for commercial truck insurance in North Carolina will be discussed in greater detail when you call our truck accident lawyers at Tatum & Atkinson Law Firm. However, remember that in almost every case, North Carolina commercial truck insurance requirements are not the only factor that will determine the amount you will receive in compensation.
To schedule your free case consultation, please call our truck accident attorney at (800) 529-0804.Â
How Much Insurance Must NC Trucking Companies Carry
The Federal Motor Carrier Safety Administration outlines the minimum level of liability insurance in trucking for North Carolina as defined by 49 CFR § 387.9. The required limits for coverage vary with different types of cargo.
| What the truck hauls | Minimum liability |
| General (non-hazardous) freight, 10,001+ lbs | $750,000 |
| Oil and certain hazardous substances | $1,000,000 |
| Explosives, poison gas, large-quantity radioactive material | $5,000,000 |
| Light vehicles under 10,001 lbs, non-hazardous | $300,000 |
| Passenger carriers, 16 or more seats | $5,000,000 |
| Passenger carriers, 15 or fewer seats | $1,500,000 |
The FMCSA states that before an operating authority can be enabled, the carrier must have documentation indicating they have insurance coverage. If there’s no documented evidence, then there is no operating authority. Also, once the carrier has established insurance coverage, they are required to maintain that coverage for the duration of their operations.
One detail that most people fail to recognize is that brokers and shippers frequently expect the carriers to have higher levels of coverage than what is mandated by law. For example, if a carrier is only required to carry $750,000 of coverage legally, they may be compelled by a shipper to carry the standard $1 million limit in order to secure a load. That additional level of coverage can be very important to the carrier after an accident occurs.
How North Carolina Applies These Rules to Local Trucks
Does North Carolina require intrastate trucks to carry $750,000? North Carolina does want its in-state carriers to follow the same financial responsibility rules as the federal government requires of the interstate carriers. The owner of all commercial motor vehicles must have insurance coverage equal to what is required under the federal government, a minimum of $750,000 for the transport of non-hazardous property.
According to the North Carolina Division of Motor Vehicles, a truck that operates between Greensboro and Wilmington must have the same $750,000 minimum insurance as a truck that operates from North Carolina to Virginia. The NC Utilities Commission & NCDMV have worked together to ensure that both the intrastate rules and federal regulations are consistent. For example, if a truck rear-ends a vehicle on US-64 inside North Carolina, a claimant would have to prove that their damages would be the same if the truck had crossed the state line.
A hazardous waste vehicle requires minimum insurance for hazmat trucks in North Carolina coverage of $1 million for the transport of oil and $5 million for the transport of other hazardous material products.
How Much Liability Insurance Do Semi Truck Need in NC and Why $750,000 Often Falls Short
Another thing that the trucking industry doesn’t advertise properly is this: back in 1980, the $750000 trucking liability minimum amount was for the trucking industry. This figure was never adjusted for inflation, and now each year, if you factor in inflation, that 1980 figure would now equal over $2,800,000 today.
Trucking is getting more expensive these days, too. Just one spinal cord injury from a truck accident could cost more than $1,000,000 in lifetime medical care; then you have lost income, multiple surgeries, and non-economic damages for the family of the person killed in the accident. Hence, the $750,000 gets used up quickly!
Here’s our position: the federal minimum coverage amount is only the minimum that your trucking company must carry; it’s not the maximum amount that you can recover. The insurance companies want you to assume that the policy limit that is on file with their company is the most you can recover. The correct question is NOT “What is the minimum amount of coverage that the law requires the trucking company to have?” But how much total coverage actually exists?
How To Find All Insurance Coverage After A Truck Accident
Many people may ask, “What if a truck’s insurance isn’t enough to cover my injuries, Then it’s worth noting that the FMCSA minimum insurance for trucks is the minimum amount, not the whole picture.Â
Primary and Excess Layers
The freight carrier you may be dealing with may have $10 million or more in total coverage available through a variety of excess and umbrella policies. Claimants must exhaust the lower layers of coverage before any claim can be presented to the subsequent layer. While every layer will dictate how much insurance coverage is available for a claimant’s loss, triggering the top layers requires detailed documentation proving that the claimant’s damages truly exceed the limits of the underlying coverage.
The MCS-90 Endorsement
Your personal uninsured motorist coverage, along with the trucking company’s liability insurance policy, can provide critical protection during an MCS-90 endorsement truck accident claim. This safety net provides further assurance if the trucking company attempts to deny responsibility through technicalities and/or to deny coverage under its primary policy.
While the MCS-90 is not an alternative to any primary policy, it is an additional source of security when a trucking company may seek to deny its liability to a third party.
Other Companies That May Owe You
In addition to seeking compensation from the driver’s employer, other parties could also be liable to pay you as a result of the truck accident, including freight brokers, shippers who loaded trailers incorrectly, leasing companies that own tractors, and maintenance contractors who failed to perform inspection services. Identifying which parties are responsible and carrying the applicable insurance will turn a minimum truck accident insurance limits NC case into a full-value one.
The 1% Rule Changes the Math
North Carolina follows pure contributory negligence. If a trucking adjuster can pin even one percent of the responsibility of the crash on you, you will not receive any money in your case, regardless of the amount of insurance available from the other side. This is why the trucking company’s claim adjuster is likely to show up at the accident site as soon as possible in order to search for any statements, evidence, or inconsistencies made by you.
In summary, both the coverage issue and the fault issue are interrelated. A $10 million insurance tower is useless if the defense can prove you had part of the responsibility for the truck accident. Do not hand them the 1%.
Talk to a North Carolina Truck Accident Lawyer
If you are trying to figure out how much insurance is a trucking company required to have in North Carolina, that question alone is a reason enough to call us! The weeks following a truck accident involve medical appointments, missed days from work, and an insurance adjuster who has already studied his game plan. You can reach out to us without having to know everything before making the call.
At Tatum & Atkinson Law Firm, we have been handling trucking cases in North Carolina since 2006. Our attorneys have been members of the Academy of Truck Accident Attorneys for almost half a decade, and our Heavy Hitters understand what the trucking carrier’s insurance company does first: records your statement on tape, works diligently looking for a way out of paying 1% or more, and attempts to settle your claim at the lowest insurance policy limit available. We pull the FMCSA records, send preservation letters, and draw the complete insurance tower at the earliest opportunity.Â
Call (800) 529-0804 for a free consultation. We work on contingency only; there is no fee unless we recover for you. The first call takes about 20 minutes, and it costs you nothing.
Frequently Asked Questions!
Does a bigger insurance policy mean my case is worth more?
The value of a claim for an injured person does not depend on the limits of an insurance policy but instead will depend on their medical bills, lost earnings, and the injuries themselves. Therefore, larger policy limits make it easier to access the funds to pay for damages than smaller policy limits.Â
What if the truck’s insurance is not enough to cover my injuries?
In many cases, catastrophic injury claims will exceed the limits of one’s primary insurance. In order to obtain full compensation for a catastrophic injury, it is important to identify and pursue all available sources of coverage, including multiple levels of coverage (primary insurance policies, excess or umbrella insurance, and additional defendants), as well as underinsured motorist options.
Will my truck accident case go to trial?
The majority of cases will settle; however, to achieve a good result, you should be prepared to go to trial. Insurance companies track how many litigation attorneys represent claimants as compared to those who just settle. A solidly built, trial-ready case will lead to the largest possible settlements.
How much does it cost to hire a truck accident lawyer?
We work on a contingency basis, which means we will collect our fee from your recovery, and you will not have a fee to pay until you make a recovery. Additionally, if there is no recovery, then you owe us nothing.Â
What evidence disappears after a truck crash, and how fast?
Timely action will protect important truck evidence such as data from electronic logging device, dash camera video, and engine data before they are erased. A timely preservation letter will prevent the destruction of evidence you need to prove your case.
