Hot shot insurance: coverage, requirements, cost
By Gustavo · Updated October 2026
Insurance is usually the first big bill a new hotshot authority pays, and it's often bigger than expected. It's also non-negotiable: your authority isn't active until a liability filing is on record, and no broker will tender a load without a certificate. This guide covers what you need, what it costs and how to bring the number down.
Coverages a hotshot carries
| Coverage | Required? | What it pays for |
|---|---|---|
| Primary auto liability | Yes, federal minimum $750,000 | Injury and damage you cause to others |
| Motor truck cargo | Brokers require it, usually $100,000 | Loss of or damage to the freight |
| Physical damage | Lender requires it if financed | Your truck and trailer |
| Non-trucking liability | Only when leased on | Driving the truck off dispatch |
| Trailer interchange | Only for others' trailers | A trailer you pull that you don't own |
| General liability | Some shippers ask | Non-auto claims, like at a customer's site |
| Occupational accident | Optional for owner-operators | Your own injuries, in place of workers' comp |
SOURCE: Federal minimum: 49 CFR 387.9 (checked Oct 2026).
What it costs
| Package | Per year | Per month |
|---|---|---|
| Liability only | $6,000 to $15,000 | $500 to $1,250 |
| Liability and cargo | $8,000 to $20,000 | $670 to $1,670 |
| Full package with physical damage | $12,000 to $30,000+ | $1,000 to $2,500+ |
SOURCE: Ranges: LogRock, hotshot insurance cost, 2026 (checked Oct 2026). Monthly figures are the yearly range divided by 12.
For a deeper cost breakdown, see hotshot insurance cost. For a fast estimate on your own numbers, try the truck insurance cost estimator.
What moves your premium
- Years in business. New authorities have no history, so most pay near the top of the range for the first one to three years.
- Driving record. Tickets, accidents and claims follow you for years.
- Garaging state and ZIP. Some states and cities cost much more.
- Radius. Long-haul and many-state operations cost more than regional ones.
- Freight. Equipment, vehicles and high-value cargo raise cargo premiums.
- Equipment value. Physical damage cost tracks what the truck and trailer are worth.
- Deductibles. Higher deductibles lower the premium and raise your risk.
- Drivers. Adding a driver under 25 or one with a thin commercial history can raise the premium sharply.
- Safety scores. Roadside inspections and violations show up in FMCSA data that underwriters check.
You can't change your state or your years in business quickly. You can control your record, your inspections, your deductibles and how you shop. Those add up over two or three renewals.
Worked example
EXAMPLE
- New authority, liability + cargo
- $16,800/yr
- Per month
- $1,400
- Miles per month
- 8,000
- Insurance per mile
- $0.18
This EXAMPLE new hotshot pays $1,400 a month. At 8,000 miles a month, that's 18 cents of every mile before fuel, truck payment or profit. Drop to 6,000 miles and it's 23 cents. Insurance is a fixed cost: it hurts most when the truck sits.
Non-CDL hotshot insurance
Non-CDL doesn't mean non-commercial. Once you haul for hire across state lines in a rig over 10,001 lb, the same $750,000 federal minimum applies, and brokers ask for the same limits. Some insurers price light rigs a little lower; many don't. What changes most is the rest of your compliance: non-CDL drivers aren't in the DOT drug and alcohol program.
Cargo coverage details
Cargo policies often exclude certain freight, set lower limits for some commodities, or require specific securement and tarping. Read the exclusions before you haul vehicles, electronics, machinery or anything high-value. Our hot shot cargo insurance guide covers the fine print.
Insurance when you lease on
If you lease on to a carrier instead of running your own authority, the carrier's liability policy usually covers you while you're under dispatch. You still pay for non-trucking liability (bobtail) for when you drive the truck off duty, and often physical damage and occupational accident coverage. Ask the carrier exactly which coverages they provide, which ones they charge back to you each week, and what the deductibles are. Those chargebacks belong in your cost per mile just like a premium you pay yourself.
How to lower the cost
- Shop with the same limits. Ask three or more agents who write trucking for identical coverage, so quotes compare.
- Pay in full if you can. Many policies cost less paid annually.
- Raise deductibles you can cover. Only as high as you could pay tomorrow.
- Keep the record clean. One accident can cost more than years of savings.
- Add telematics or dash cams if your insurer gives credit for them.
- Re-shop at every renewal. After a year of clean history, prices often drop.
- Run more paid miles. Insurance per mile falls as loaded miles rise.
Filings and certificates
Two pieces of paper prove your insurance, and they do different jobs.
- The federal filing (BMC-91 or 91X). Your insurer files it with FMCSA. Your MC authority can't become active without it, and if the policy lapses, FMCSA is notified and your authority can be revoked. Never let a payment slip.
- The certificate of insurance (COI). A one-page summary your agent sends to brokers and shippers. Most brokers want to be listed as certificate holder, and some ask to be notified if the policy is cancelled. Ask your agent how fast they turn around certificates: a slow agent can cost you a load.
Choosing an agent
Look for an agent who writes trucking every day, not a general agent who does a truck policy now and then. A good trucking agent knows which insurers take new authorities, which ones cover the freight you haul, and how to word your radius and operations correctly. Ask how they handle claims, whether they can issue certificates the same day, and whether they'll re-market your policy at renewal.
Be honest on the application. Understating your radius, your freight or your drivers can give an insurer grounds to deny a claim, which is far worse than a higher premium.
When you have a claim
Report it right away, take photos, get the police report number if there is one, and keep every document. Cargo claims move faster when you have photos of the load secured at pickup and a clean bill of lading. Claims raise your premium at renewal, so small cargo claims are sometimes cheaper to settle directly with the shipper; ask your agent before you decide.
Requirements by state
Most hotshots run interstate under federal minimums, but intrastate carriers follow state rules, and some states set different limits or filings. See hotshot insurance requirements by state.
What insurance doesn't cover
None of these coverages pay for a failed engine, transmission or emissions system. That's the job of a repair fund or a breakdown protection plan. See hotshot truck warranty.
Keeping the truck earning
The best way to make a big premium manageable is to keep the truck loaded at good rates. With hotshot dispatch, we find loads that fit your rig, negotiate the rate and plan the reload so fewer miles are empty. You approve every load, and the broker sends the rate confirmation straight to you. Price your runs with the hotshot rate calculator, and see where loads come from in hot shot loads.
Questions people ask
Q01How much is hot shot insurance?
A 2026 industry estimate puts most for-hire hotshots at about $7,000 to $30,000 a year in total. Liability alone often runs $6,000 to $15,000; a full package with cargo and physical damage costs more. Your state, record, years in business and coverage limits decide where you land.
Q02What are the hotshot insurance requirements?
Federal rules require at least $750,000 in public liability for interstate for-hire carriers hauling general freight in vehicles over 10,001 lb. Brokers usually require $1,000,000 auto liability and $100,000 cargo. Some states and some freight add more.
Q03Is non-CDL hotshot insurance cheaper?
Sometimes, because the rig and the loads are lighter, but the federal liability minimum is the same once you're over 10,001 lb for hire across state lines. Insurers look more at your record, years in business and radius than at the CDL itself.
Q04Does hotshot insurance cover a blown engine?
No. Liability, cargo and physical damage pay for accidents and losses, not mechanical failure. Breakdown protection plans or a repair fund cover that.
Q05How can I get cheaper hotshot insurance quotes?
Keep a clean record, choose higher deductibles you can afford, pay in full if you can, ask several agents who write trucking for the same limits, and shop again at every renewal once you have history.