Why Truck Insurance Is Different From Car Insurance
Key Takeaways
- Colorado requires drivers to carry only $25,000 per person in bodily injury liability coverage. Federal law requires most interstate freight carriers to carry at least $750,000.
- That $750,000 minimum was set by the Motor Carrier Act of 1980 and has never been raised, which means it buys far less medical care today than it did then.
- Serious injury claims frequently exceed the primary policy, which is why commercial coverage is usually layered across several insurers.
- A larger policy is not a larger offer. Commercial insurers defend these claims aggressively precisely because the exposure is high.
- When a public entity owns the vehicle, damages are capped by statute regardless of how much coverage exists.
How much insurance does a commercial truck have to carry?
Federal minimums are set in 49 CFR 387.9, and the required amount depends on what the truck is hauling.
| Type of carriage | Federal minimum |
|---|---|
| For-hire interstate, nonhazardous property, 10,001 lbs GVWR or more | $750,000 |
| Oil and certain hazardous materials and wastes in bulk | $1,000,000 |
| Hazardous substances in cargo tanks, portable tanks, or hopper vehicles, and certain explosives | $5,000,000 |
Compare that to what Colorado asks of an ordinary driver. According to the Colorado Division of Insurance, the required minimum is $25,000 per person for bodily injury, $50,000 per accident, and $15,000 for property damage. Uninsured and underinsured motorist coverage is optional and is included in a policy unless the driver rejects it in writing.
The gap between $25,000 and $750,000 is the single biggest structural difference between a car crash claim and a commercial claim. It changes how the case is investigated, how it is defended, and how long it takes.
Why does the $750,000 minimum matter so much?
Because it was set in 1980 and has never been increased. Congress established the figure through the Motor Carrier Act of 1980, and the regulation still carries it today.
A single hospitalization following a serious truck crash can consume a substantial portion of that amount before rehabilitation begins. Add surgical care, a period of inpatient rehabilitation, home modification, and lost earning capacity, and the primary policy stops being a ceiling on the injury and starts being a starting point for the claim.
This is why the size of the injury, not just the fact of it, drives strategy in commercial cases. Catastrophic injuries such as traumatic brain injury and spinal cord damage are the ones that routinely exceed the minimum, and they are also the injuries most commonly produced by an 80,000-pound vehicle.
What does a commercial insurance tower look like?
Commercial coverage is usually layered rather than sitting in a single policy. A carrier buys a primary policy and then stacks excess layers on top of it, sometimes through several different insurers.
A typical structure looks like this:
- Self-insured retention. An amount the carrier pays out of pocket before any insurer contributes.
- Primary layer. The policy that responds first and controls the initial defense.
- Excess layers. Additional coverage that attaches once the layer beneath it is exhausted.
The layering changes negotiation. Each insurer wants the case resolved within the layer below its own, which means a demand that exceeds the primary policy forces excess carriers into the conversation. Those carriers evaluate the claim independently, and they pay close attention to whether the case is likely to be tried.
Identifying every available layer requires knowing every responsible party. Our article on who is liable in a truck accident besides the driver covers how additional defendants bring additional coverage.
What is an MCS-90 endorsement?
The MCS-90 is a federally required endorsement attached to a motor carrier’s liability policy. Its purpose is to make sure the public is protected even when the underlying policy would otherwise exclude the claim.
In practical terms, it functions as a backstop rather than as ordinary coverage. The insurer that pays under an MCS-90 generally has the right to seek reimbursement from the carrier. For an injured person, its significance is that a coverage exclusion buried in a commercial policy does not automatically leave them with nothing.
Whether it applies in a given case is a legal question that turns on the specific facts, the type of commerce involved, and the policy language. It is worth having counsel evaluate rather than assuming it either applies or does not.
Does more insurance mean a bigger settlement?
No, and expecting otherwise leads to disappointment. A larger policy means larger exposure, and larger exposure means a more determined defense.
Commercial insurers behave differently from personal auto insurers in several observable ways:
- They deploy investigators to serious crash scenes within hours, sometimes before the vehicles have been cleared.
- They retain defense counsel immediately rather than after a claim is filed.
- They control access to the truck, the driver, and the records, which is why preserving evidence after a Colorado truck crash has to happen fast.
- They invest heavily in comparative fault, because every percentage point assigned to the injured person reduces what they pay.
That last point is worth dwelling on. Under Colorado’s modified comparative negligence rule, an injured person found 50 percent or more at fault recovers nothing at all. Against a $750,000 policy, moving fault from 30 percent to 50 percent is not a discount for the insurer. It is a complete defense.
How do commercial adjusters value a truck injury claim?
On the same core variables as any personal injury claim, with one addition. Medical expenses, future care, lost income, lost earning capacity, permanence, and the strength of the liability evidence all drive the number, as covered in how insurance adjusters decide what your claim is worth.
The addition is trial risk. When a carrier’s exposure runs into seven figures, the insurer’s evaluation includes whether the firm on the other side actually tries cases or settles them. That assessment is not speculation on our part. It is discussed openly in the industry, and our article on why insurance companies track which law firms actually go to trial explains how it shows up in an offer.
What if the truck was uninsured or underinsured?
It happens, particularly with small carriers, unregistered operators, and hit-and-run cases where the truck is never identified.
Colorado drivers who carry uninsured and underinsured motorist coverage can pursue their own policy in those situations. Because UM and UIM coverage is included unless it was rejected in writing, many people have it without realizing. Our guide to uninsured motorist claims after a Colorado crash covers how those claims work, and our page on hit and run accidents addresses the situation where the vehicle leaves the scene.
What if a government vehicle was involved?
Then insurance limits stop being the ceiling and statute takes over. Public entities in Colorado are shielded by the Colorado Governmental Immunity Act, which caps recovery regardless of available coverage.
For claims accruing on or after January 1, 2026 and before January 1, 2030, the Colorado Secretary of State’s certified limitation on judgments is $505,000 for injury to one person in a single occurrence and $1,421,000 where two or more people are injured, with no individual recovering more than $505,000.
There is also a hard notice deadline. C.R.S. 24-10-109 requires written notice to the correct public entity within 182 days of discovering the injury. The details are covered in injured by a government vehicle in Colorado.
Do I pay anything to pursue a truck insurance claim?
Not upfront. Personal injury firms in Colorado generally work on a contingency fee, meaning the fee comes out of a recovery and there is nothing owed if there is no recovery.
That structure matters more in commercial cases than in ordinary claims, because the costs are higher. Downloading engine data, retaining an accident reconstruction expert, hiring a trucking safety expert, and building a life care plan are expensive. A firm that advances those costs is making a judgment about the case. Our explanation of how contingency fees work covers the arrangement in detail.
For the full framework on how these claims are built, see our overview of truck accident claims in Colorado.
Frequently Asked Questions
How much insurance does a semi truck carry?
Federal law requires most for-hire interstate carriers hauling nonhazardous property to maintain at least $750,000 in liability coverage. Trucks carrying hazardous substances in cargo tanks must carry $5,000,000. Many carriers hold considerably more through excess layers.
Will the trucking company’s insurer offer more because the policy is large?
No. A larger policy generally produces a more aggressive defense, not a more generous offer, because the insurer’s exposure is greater.
What happens if my damages exceed the truck’s insurance?
Excess layers may apply, and additional responsible parties such as a shipper, broker, maintenance contractor, or manufacturer may bring separate coverage. Your own underinsured motorist coverage may also be available.
Does Colorado require uninsured motorist coverage?
No. The Colorado Division of Insurance describes uninsured and underinsured motorist coverage as optional, though it is included in a policy unless the driver rejects it in writing.
Is there a cap on what I can recover in a truck accident case?
Not for claims against private carriers. Claims against public entities are capped by the Colorado Governmental Immunity Act at the amount certified by the Secretary of State for the year the claim accrued.
Talk to a Denver truck accident lawyer
Finding every available layer of coverage is part of building the claim, and it starts with identifying every responsible party. Chalat Hatten & Banker represents seriously injured people and their families throughout Colorado, and there is no fee unless we recover on your behalf. Schedule a free consultation.