Texas is home to some of the busiest highways in the United States, with thousands of commercial trucks transporting goods across state lines every day. Because these large vehicles pose unique risks on the road, both federal and state authorities require strict insurance coverage for interstate motor carriers.
If you operate a trucking business in Texas, hire carriers to transport freight, or are involved in a truck accident, it’s crucial to understand the minimum insurance requirements, the different coverage ranges, and the role of the MCS-90 endorsement.
Federal vs. State Oversight
When it comes to insurance for commercial motor carriers, federal law sets the baseline. The Federal Motor Carrier Safety Administration (FMCSA) oversees interstate trucking companies and requires them to file proof of financial responsibility before they can operate legally.
In Texas, the Texas Department of Motor Vehicles (TxDMV) enforces additional requirements for intrastate carriers. However, any motor carrier operating across state lines must comply with FMCSA rules first and foremost. Proof of coverage is filed with the FMCSA through forms such as the BMC-91X, which confirms the carrier has the required levels of liability insurance.
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Minimum Insurance Coverage Amounts
The amount of insurance an interstate motor carrier needs depends on the type of cargo and the weight of the vehicle. These requirements are designed to ensure the public is protected if an accident occurs.
Here’s a breakdown of the federal minimums that apply:
- $750,000 – For carriers transporting non-hazardous property in vehicles over 10,000 pounds.
- $1,000,000 – For carriers transporting oil.
- $5,000,000 – For carriers transporting hazardous materials, explosives, or certain dangerous substances.
These amounts represent the minimum required public liability coverage. Many carriers choose to purchase higher limits, especially if hauling high-value cargo or working with shippers who demand additional protection.
Required Types of Coverage
Insurance requirements aren’t just about dollar amounts—they also specify the types of coverage carriers must hold.
- Public Liability Insurance – Covers bodily injury, property damage, and environmental restoration from accidents. This is the core federal requirement for interstate carriers.
- Cargo Insurance – Not always required by the FMCSA, but often mandated by shippers or brokers to protect the goods in transit.
- Workers’ Compensation – Governed by state law. While Texas does not mandate workers’ compensation for all employers, many carriers opt in for employee protection.
Together, these coverage types ensure that both the public and the carrier’s business are protected, creating a safer and more reliable trucking industry.
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The Importance of the MCS-90 Endorsement
Perhaps the most unique requirement for motor carriers is the MCS-90 endorsement. This form is attached to a carrier’s liability policy and ensures financial responsibility even in situations where the policy might not otherwise provide coverage.
What the MCS-90 Does
The MCS-90 endorsement plays a crucial role in motor carrier insurance, providing protections that go beyond standard policy language in three key ways:
- Guarantees Payment – If a motor carrier causes an accident resulting in injury or property damage, the insurer must pay any judgment, even if the loss is excluded by the policy.
- Protects the Public – Accident victims are not left uncompensated simply because of a policy exclusion.
- Carrier Reimbursement – If the insurer pays under MCS-90 for a claim not covered by the policy, the carrier must reimburse the insurer.
In short, the MCS-90 endorsement acts as a safety net for the public, ensuring that someone injured in a trucking accident has access to compensation. For carriers, it is a compliance requirement that they cannot operate without.
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Compliance Risks and Penalties
Failing to maintain the proper insurance coverage—or neglecting to keep MCS-90 endorsements active—can lead to serious consequences for motor carriers in Texas:
- Revocation of Operating Authority – Carriers may lose their FMCSA registration.
- Civil Penalties and Fines – Noncompliance can result in thousands of dollars in fines.
- Business Risk – Shippers and brokers routinely check carrier compliance before awarding contracts. Lack of proper filings can mean lost business opportunities.
In short, noncompliance with federal and Texas insurance requirements doesn’t just threaten a carrier’s legal authority—it can jeopardize financial stability and long-term business success.
Staying Compliant in Texas
For Texas-based motor carriers operating interstate, compliance comes down to careful planning and regular monitoring.
Some best practices include:
- Work with Experienced Insurance Providers – Choose insurers who understand FMCSA requirements.
- Review Coverage Regularly – Ensure limits still meet federal minimums and business needs.
- Keep Records Updated – Maintain up-to-date MCS-90 endorsements and liability forms.
- Consult With a Lawyer – An attorney familiar with transportation law can help interpret regulations, review contracts, and ensure filings are legally sound.
Being proactive not only avoids legal trouble but also builds trust with shippers, brokers, and the communities carriers serve.
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Interstate operations in Texas demand more than just a policy—they require the right limits, the right filings, and an active MCS-90 to protect the public and keep your authority intact. By understanding federal minimums, maintaining proper public liability coverage, and proactively auditing your documents, you reduce risk and strengthen your business.
If questions arise about coverage tiers, filings, or compliance pitfalls, getting tailored legal guidance can save time and money.
Contact the Houston personal injury law firm of Attorney Brian White Personal Injury Lawyers by calling (713) 500-5000.
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About the Author Brian White
Brian White earned his J.D. from South Texas College of Law in Houston and is licensed to practice in Texas. As a Board-Certified Personal Injury Trial Lawyer, Brian represents clients throughout Houston in cases involving car accidents, truck accidents, motorcycle accidents, brain injuries, wrongful death, and more.
Dedicated to giving back, he actively supports local charities and community initiatives across Houston. Client testimonials highlight Brian’s compassion, open communication, and dedication to achieving the best outcomes for those he represents.
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