Commercial Auto Insurance Requirements (2026 Guide)

Updated: September 7, 2026

Advertising & Editorial Disclosure

What Commercial Auto Insurance is Required?

Any mandated commercial auto insurance limits typically apply to the liability coverage portion of the policy, but some states may require PIP and Medpay. If limit requirements are higher in the case of federally required coverage, you may have to opt for a CSL or combined single limit policy with $1 million or higher coverage, depending on vehicle use.

In short, your business insurance requirements apply to the following parts of what a commercial vehicle policy covers:

Bodily Injury Liability: Pays for injuries to other people when you or an employee causes an accident while driving a covered business vehicle, with limits on a per accident and per person basis.
Property Damage Liability: Pays for damage you cause to another person’s vehicle, building or other property in a covered accident on a per accident basis.
Combined Single Limit (CSL): Provides one total liability limit that can be used for both bodily injury and property damage claims from the same accident.
Personal Injury Protection (PIP): Pays covered medical expenses and, depending on the state, lost wages and other accident-related costs for you and your passengers regardless of fault.
Medical Payments Coverage (MedPay): Pays reasonable medical and funeral expenses for you and your passengers after an accident, regardless of who caused it up to a certain limit per person.
Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage: Pays for covered injuries and, where available, property damage when an at-fault driver has no or insufficient auto insurance.

Commercial Auto Insurance Requirements by State

Each state sets its own rules for commercial auto insurance. Some require only basic liability coverage, while others require you to have uninsured motorist insurance or personal injury protection.

Find your state's minimums below:

State	Required Coverage and Minimum Limits	Special Requirements
Alabama	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Property carriers >10,000 lbs: $300,000–750,000 depending on cargo type
Alaska	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $25,000 per accident	Passenger carriers: $500,000 BI/$200,000 PD
Arizona	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Hazmat carriers: $1M–$5M CSL depending on substance
Arkansas	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Property carriers: 50/100/30
California	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $15,000 per accident	Interstate vehicles with USDOT/MC: $750,000 CSL minimum
Colorado	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Interstate vehicles: $750,000 CSL minimum
Connecticut	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident • Personal injury protection (PIP): $20,000 per person/$40,000 per accident	Passenger vehicles >8 passengers: $1.5M; >16 passengers: $5M
Delaware	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $15,000 per person/$30,000 per accident	Taxicabs: $26,000 BI/$11,000 PD minimum
Florida	• Property damage liability: $10,000 per accident • Personal injury protection (PIP): $10,000	No-fault state Bodily injury liability not required except for DUI convictions and taxis ($125,000/$250,000)
Georgia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Higher limits required for larger vehicles and interstate operations
Hawaii	• Bodily injury liability: $20,000 per person/$40,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $10,000 per person	Property carriers: 250/750/250
Idaho	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident (opt-out available in writing)	Property carriers: $750,000 CSL for non-hazardous materials
Illinois	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Indiana	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Higher limits for commercial carriers
Iowa	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Vehicles >10,000 lbs: $750,000 liability for non-hazardous; $5M for hazardous
Kansas	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): - $4,500 medical expenses - $900/month lost wages (12 months) - $4,500 rehabilitation - $25/day essential services - $2,000 funeral expenses	No-fault state requirements apply
Kentucky	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $10,000 per person per accident	No-fault state requirements apply
Louisiana	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Maine	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident • Medical payments coverage (MedPay): $2,000 per person	Higher baseline requirements
Maryland	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $15,000 per accident • Uninsured/underinsured motorist (UM/UIM): $30,000 per person/$60,000 per accident (includes property damage)	Baltimore area taxis: 30/60/15 or $75,000 CSL
Massachusetts	• Bodily injury liability: $20,000 per person/$40,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $8,000 per person • Uninsured/underinsured motorist (UM/UIM): $20,000 per person/$40,000 per accident	No-fault state; UM/UIM required
Michigan	• Bodily injury liability: $50,000 per person/$100,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): Options include unlimited, $500,000, $250,000, $50,000 (Medicaid enrollees), or opt-out (Medicare enrollees)	Freight vehicles >10,000 lbs have higher requirements
Minnesota	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $40,000 per person ($20,000 medical, $20,000 wage loss/replacement services)	No-fault state requirements apply
Mississippi	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Missouri	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured motorist (UM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Montana	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply
Nebraska	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Nevada	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply
New Hampshire	• Financial responsibility required, but insurance not mandatory • If insurance purchased: • Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Medical payments: $1,000 • Uninsured motorist: $25,000 per person/$50,000 per accident	Alternative to insurance: Financial responsibility may be demonstrated through other means. Commercial vehicles with USDOT numbers may need additional federal coverage requirements.
New Jersey	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $15,000 minimum (up to $250,000 available; automatic expansion to $250,000 for catastrophic injuries)	No-fault state; minimum limits increasing in 2026
New Mexico	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident	Standard commercial requirements apply
New York	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Personal injury protection (PIP): $50,000 • Uninsured motorist (UM): $25,000 per person/$50,000 per accident	No-fault state with additional requirements
North Carolina	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $30,000 per person/$60,000 per accident	Vehicles >26,000 lbs: 100/300/50
North Dakota	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $30,000 per person • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	No-fault state
Ohio	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Oklahoma	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
Oregon	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Pennsylvania	• Bodily injury liability: $15,000 per person/$30,000 per accident • Property damage liability: $5,000 per accident • Personal injury protection (PIP): $5,000 minimum medical benefits (up to $100,000+ available; optional add-ons for lost wages, funeral expenses)	No-fault state; lower baseline requirements
Rhode Island	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident	Standard commercial requirements apply
South Carolina	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
South Dakota	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Tennessee	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $15,000 per accident	Standard commercial requirements apply
Texas	• Bodily injury liability: $30,000 per person/$60,000 per accident • Property damage liability: $25,000 per accident • Personal injury protection (PIP): $2,500 minimum (automatically included unless waived in writing; higher limits available)	Additional requirements for vehicles with DOT numbers
Utah	• Bodily injury liability: $25,000 per person/$65,000 per accident • Property damage liability: $15,000 per accident • Personal injury protection (PIP): $3,000 minimum - Medical expenses - Lost wages up to $250/week or 85% of income for 52 weeks - Burial costs up to $1,500	No-fault state requirements apply
Vermont	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident	Standard commercial requirements apply
Virginia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident • Uninsured/underinsured motorist (UM/UIM): $50,000 per person/$100,000 per accident (effective Jan 1, 2025; includes property damage $25,000)	Standard commercial requirements apply
Washington	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident	Freight vehicles have weight-based requirements
West Virginia	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $25,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Passenger vehicles have capacity-based requirements
Wisconsin	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $10,000 per accident • Uninsured/underinsured motorist (UM/UIM): $25,000 per person/$50,000 per accident	Standard commercial requirements apply
Wyoming	• Bodily injury liability: $25,000 per person/$50,000 per accident • Property damage liability: $20,000 per accident	Standard commercial requirements apply

Note: Requirements shown are state minimums. Many businesses need higher limits and additional coverage types not listed here. Always verify current requirements with your state's insurance department or a licensed agent before purchasing coverage.

Below you can look deeper into your state's commercial auto insurance requirements with our dedicated guides.

California Commercial Auto Insurance Requirements

Connecticut Commercial Auto Insurance Requirements

Florida Commercial Auto Insurance Requirements

Georgia Commercial Auto Insurance Requirements

Illinois Commercial Auto Insurance Requirements

Michigan Commercial Auto Insurance Requirements

New Jersey Commercial Auto Insurance Requirements

New York Commercial Auto Insurance Requirements

North Carolina Commercial Auto Insurance Requirements

Ohio Commercial Auto Insurance Requirements

Pennsylvania Commercial Auto Insurance Requirements

Texas Commercial Auto Insurance Requirements

Federal Commercial Vehicle Requirements

Most states treat commercial and personal vehicles the same when it comes to liability minimums. But if your business falls into certain categories, you'll face much higher federal requirements from the Federal Motor Carrier Safety Administration (FMCSA):

Interstate commerce
Transporting goods or passengers across state lines for compensation requires motor carrier numbers (MC numbers) and higher insurance minimums. General freight carriers operating vehicles over 10,001 lbs need $750,000 minimum liability coverage.
Hazardous material transport
Any business hauling hazmat faces federal oversight regardless of whether they cross state lines. These operations require $5,000,000 minimum liability coverage, making this the highest federal requirement.
High-capacity passenger transport
The federal government requires higher coverage for vehicles that carry multiple passengers in interstate service. Buses and vans built for 16 or more passengers need $5,000,000 liability, while smaller passenger vehicles (those that can seat between nine and 15 passengers) require $1,500,000.

Federal requirements can change and may have additional conditions. Consult with FMCSA or a commercial insurance specialist for current regulations affecting your specific business operations.

Federal liability requirements represent minimum coverage amounts and don't include deductibles, which vary by insurer and policy terms.

Is Minimum Commercial Auto Insurance Enough?

Minimum commercial auto insurance rarely provides adequate protection for most businesses. Some states only require $25,000 per person, which may not be sufficient protection. The Centers for Disease Control and Prevention (CDC) put the average cost of medical bills from motor vehicle accidents at $14,126 in 2023. Severe cases requiring hospitalization can cost much more.

Commercial Auto Insurance Requirements: Bottom Line

Commercial auto insurance requirements vary by state and business type, with most states requiring liability coverage ranging from $15,000 to $50,000 per person for bodily injury, while businesses using vehicles commercially need coverage that exceeds personal auto policy limits.

Most small businesses should buy more than state minimums and consider general liability coverage plus industry-specific protection. Obtain coverage by gathering documentation on your vehicles and drivers, then work with insurers to get the required certificates for compliance and comprehensive protection.

About Mark Flores

Mark Flores is a Business Insurance Content Writer at MoneyGeek, where he focuses on commercial auto, commercial property, cyber and specialty business insurance coverage. His work simplifies coverage terms, gives business owners a strong baseline for expected costs, and narrows down policies and providers tailored to your operation, regardless of complexity.

Before joining MoneyGeek’s business insurance team, Mark worked as a Senior Content Writer at Clutch.co, where he produced structured B2B reviews and provider analyses based on client interviews, company research and service evaluation. That experience shaped his approach to business insurance content, especially when comparing insurers, explaining coverage differences and translating complex policy features into practical guidance for small business owners.

Mark also spent nearly 4 years as a digital marketing specialist serving small-business clients across industries such as home services, manufacturing and education. That background gives him practical context for how businesses evaluate vendors, manage operational needs and make purchasing decisions.

At MoneyGeek, he applies this research and evaluation experience to build guides that help transportation sectors, those with complex property-related risks (such as hotels and retail stores), and those most at risk of a cyberattack get the coverage they need at a reasonable price.

Linkedin: https://www.linkedin.com/in/mark-jason-flores-7844634a/

Contact Email: mark.flores@moneygeek.com

Read Full Bio »

Sources