Commercial Vehicle Insurance Requirements

When operating a vehicle as a business you will be required to have different insurance than when using a vehicle for personal use. Generally it will cost more plus it will cover things not usually covered in personal insurance policies. You need to check your states requirements for commercial insurance.

• Whether or not you are a business that employs commercial driver license (CDL) holders or you personally have a CDL it is your responsibility to keep abreast of state and federal requirements that affect your license at all times.


• The federal CDL licensing requirements apply to all commercial drivers no matter where they live or work. These regulations will include age limits, written and skills testing, licensing, traffic violations, physical fitness and transporting hazardous materials.


• Each state has its own set of laws regarding commercial insurance. Those will be in the area of damage liability and bodily injury liability and other items. Keep in mind that penalties for not having proper coverage can be placed against both the driver and the parent company.


• It is different by state but most have some type of reporting requirements as well. You may be required to list all potential drivers for them to be covered. A result of this can be that your premiums may rise due to the records of your drivers. Some drivers may even be uninsurable. This will directly affect how you hire new drivers for your company.


• The type of freight that your drivers haul will also affect your insurance and its cost. You could be just a limousine service or you could be hauling hazardous waste from a nuclear plant. Those two types of insurance will be vastly different in both cost and coverage.