Commercial Truck Insurance Requirements in Texas
When you’re hurt in a crash involving a commercial truck, your first question is often: who’s going to pay for this? Between medical bills, car repairs, and time off work, the costs add up fast. That’s where trucking insurance comes in.
But commercial trucking insurance isn’t simple. Between federal and Texas laws, multiple coverage types, and layered policies, understanding what a trucking company’s insurance will actually cover—and how much—is critical to your recovery.
Let’s walk through what every truck accident victim should know.
Key Takeaways
- Commercial truck insurance varies by cargo and route, with minimums from $300K for local household movers to $5M for interstate haulers carrying hazardous materials.
- Policy limits matter—especially in multi-victim crashes, where one insurance policy must stretch across everyone’s damages.
- Large trucking companies often use layered insurance or self-insured retention (SIR), which complicates claims and can delay payment without legal help.
What Are the Minimum Insurance Requirements for Commercial Trucks in Texas?
Commercial truck operators must carry liability insurance, but the amount depends on what kind of truck it is, what it’s carrying, and whether it operates across state lines or just within Texas.
FMCSA Federal Insurance Requirements
Federal law requires interstate commercial vehicles to carry minimum liability coverage:
- $750,000 for most general freight haulers
- $1 million or more for vehicles transporting oil or hazardous materials
- $5 million for highly dangerous cargo (e.g., explosives)
Minimum liability coverage standards are set by the Federal Motor Carrier Safety Administration (FMCSA).
Texas-Specific Insurance Requirements
For trucks that operate only within Texas (intrastate carriers), the Texas Department of Motor Vehicles (TxDMV) enforces separate rules:
- $300,000 for household goods movers
- $500,000–$1 million for cargo or passenger vehicles
Other state agencies, like the Texas Department of Insurance (TDI), also oversee compliance. Many trucking companies exceed these minimums through additional or umbrella coverage.
Additional Insurance Types Carriers May Hold
- Cargo insurance (covers lost/damaged goods)
- General liability (covers property damage or non-driving injuries)
- Umbrella/excess coverage (kicks in above base policies)
- Workers’ compensation (covers driver injuries)
Want to see how this applies to your case? Visit our Texas Truck Accident Attorney page.
How Insurance Policy Limits Affect Truck Accident Injury Claims
Understanding truck insurance policy limits helps set expectations for how much compensation is realistically available. Trucking policies often cap the total payout, especially when multiple victims are involved.
What Happens When Medical Costs Exceed the Policy Limit?
If your injuries exceed the available policy, you may need to look elsewhere for compensation. This could include:
- Filing a claim through your own underinsured motorist (UIM) coverage
- Pursuing a civil lawsuit against the trucking company or third parties
- Tapping into the company’s umbrella or excess policies, if available
Impact of Multiple Victims on Shared Coverage
A single policy often covers all injured parties in the truck wreck. This can quickly exhaust the available funds, especially in catastrophic accidents. Lawsuit settlements may need to be split between victims, reducing each person’s share.
Worried the trucking company’s insurance won’t cover your expenses? Contact us for a free case review.
What Is Self-Insured Retention (SIR) and Layered Coverage in Trucking?
Some large trucking companies use alternative insurance models that can complicate the claims process.
Understanding SIR
Self-insured retention (SIR) means the trucking company pays claims out of pocket up to a set amount—often hundreds of thousands of dollars. The insurer doesn’t get involved until that threshold is hit.
This setup can delay payments or create disputes, especially when the company wants to fight liability to avoid dipping into their own funds.
Layered and Umbrella Coverage Structures
Many carriers use a tiered system: one primary policy with additional layers that only activate if the claim amount passes a certain level. These complex structures often require a lawyer to:
- Identify each layer of coverage
- Negotiate with multiple insurance companies
- Ensure no responsible party avoids payment
Why You Need Legal Help to Navigate Commercial Truck Insurance
When serious money is at stake, insurance companies work hard to pay less or nothing at all. A lawyer helps protect your rights and uncover every available source of compensation.
What a Truck Accident Attorney Can Do
- Investigate every available insurance policy
- Uncover exclusions or tactics used to avoid payout
- Push back against low offers or delay tactics
- File suits against multiple liable parties when needed
Common Challenges Victims Face Without Legal Support
- Confusing or misleading policy language
- Insurance company delays or denials
- Complex fault scenarios involving subcontractors or multiple vehicles
Let us help you understand your rights. Schedule a free consultation with a Texas truck accident lawyer today.
Commercial Truck Insurance FAQs
What is the minimum liability insurance required for commercial trucks in Texas?
It depends. Intrastate carriers may need as little as $300,000 in coverage, while federal law requires up to $5 million for hazardous freight.
How do FMCSA insurance requirements affect accident claims?
FMCSA sets a baseline for how much compensation may be available after a crash involving an interstate commercial truck.
What is self-insured retention in trucking?
SIR is when a trucking company pays out-of-pocket for claims up to a certain amount before their insurance coverage kicks in.
Can I recover damages above the policy limit?
Yes—sometimes. It depends on whether there are additional policies, umbrella coverage, or other liable parties involved.
Do policy limits apply differently if multiple people are injured?
Yes, policy limits apply differently if multiple people are injured. A single liability policy may be shared across all victims, which can reduce the amount available to each person.
Final Thoughts
Commercial truck accidents are complex, and insurance is often at the heart of the confusion. At Angel Reyes & Associates, we help victims cut through the red tape to understand their options and fight for what they deserve.
Need help making sense of a trucking company’s insurance? Contact us today for a free, no-obligation consultation.
