If you are looking for a commercial auto quote, one of the first items that will need to be determined is your commercial auto insurance coverage requirements.  Specifically, your limit of liability that you will need to have for certain government regulations.

In certain businesses in NC, you are required to have commercial auto coverage and on those policies, there are certain minimum limits of liability that are required. To register a personal auto, you are required to have certain limits of liability on your insurance policy. These limits are $30,000 bodily injury each person, $60,000 bodily injury each accident, and $25,000 property damage each accident. This is commonly referred to as 30/60/25.

These minimum limits are quite low and it doesn’t take a large accident to go over these minimum limit requirements. I strongly urge insureds to choose higher limits than the minimum required. Every carrier offers higher limits and the change in premium is relatively low compared to the coverage offered. Just remember, where your limits of liability stop, you are responsible for the remainder. You can, and in most cases, will be sued by the other party if your limits are not sufficient to the actual damage done.

The NC Reinsurance Facility (NCRF) has other minimum requirements for certain businesses.

The Federal Motor Carrier Safety Administration (FMCSA) has their own requirements for certain vehicles. Federal guidelines take over on certain risks. If vehicles cross state lines, then they are held to certain minimum standards.

Auto Liability Requirements by Business Type

Taxi Cabs: Cabs carry the same minimum 30/60/25 requirements as do personal autos.

Uber, Lyft, and other Rideshares: Uber and Lyft drivers are currently under the same restrictions as the cab companies with 30/60/25 requirements. Uber, as a corporation, provides a $1,000,000 limit of liability for their drivers while passengers are being transported.  It will be up to you to make sure you choose the liability limits that cover you outside of the times the rideshare company picks up coverage.  You also want to make sure you have the endorsement on your policy for this, otherwise you may not be covered at all if your company excludes this.

Other Livery: Livery means simply, the transportation of passengers. The NCRF requirement for livery businesses with vehicles that can transport 15 or more passengers have a combined single limit (CSL) of $750,000.

Charter and Sightseeng Buses: The NCRF limit for buses is $1,500,000 due to the weight of the vehicle.

Limousines and Airport Shuttles: Passenger capacities up to 15 persons will require a $1,500,000 limit of liability for limousines and airport shuttles. This limit is increased to $5,000,000 if the passenger capacity is over 15.

Weighted Vehicles: Vehicles over certain weights that are not used to transport passengers have the following minimum required coverages: The gross vehicle weight of the vehicle and trailer combined has a minimum requirement of $750,000 if said weight is over 26,000 pounds.

Tractor Trailers: Unless transporting hazardous material, the minimum requirements for tractor trailers crossing state lines is $750,000.  There are very few companies that you will haul for that will be OK with this limit however.  Over 90% of the companies we see require their drivers to have at least $1,000,000 in auto liability limits.

Depending on your business and the vehicle you are driving, you will be required to have certain commercial auto coverage requirements either by NCRF guidelines or FMCSA guidelines. Your agent should know what limit are required if you are able to give the details of the vehicle, business type, gross vehicle weight, and radius you are driving. Keep in mind that higher limits are often available and you may want higher limits than the minimum requirements to protect yourself.