Truck Insurance Limits in Arizona: $750K, $1M and $5M Explained

Truck insurance limits shape almost every serious truck accident claim in Phoenix. A crash with an 80,000-pound tractor-trailer can cause injuries and losses far beyond what a typical car insurance policy covers. That is one reason federal and Arizona law require trucking companies to carry much higher minimum coverage than ordinary drivers. This guide explains those minimums, who must carry them, and why the minimum is often just the starting point. (80,000 pounds is the general federal gross weight limit on Interstate highways under 23 CFR 658.17 (opens in a new tab).)

Why truck insurance matters in Phoenix

The Phoenix area handles a lot of freight. Trucks travel I-10 between Southern California and the Valley, I-17 toward Flagstaff, and the Loop 303 and Loop 202 corridors that serve warehouses and distribution centers. Some of these trucks belong to large national carriers. Others belong to small Arizona companies that never leave the state.

That difference matters. A national for-hire carrier crossing state lines falls under federal insurance rules. A small local company may fall under Arizona rules instead. The type of cargo matters too. A tanker hauling fuel on I-10 is held to a higher minimum than a box truck carrying furniture.

For comparison, Arizona's basic minimum for a regular car policy issued or renewed since July 1, 2020 is $25,000 per person and $50,000 per accident for bodily injury (A.R.S. 28-4009 (opens in a new tab)). Serious truck crash injuries can easily exceed limits like that.

The federal minimums: $750,000, $1 million and $5 million

Federal rules in 49 CFR 387.9 (opens in a new tab) set minimum levels of "public liability" coverage. Public liability means liability for bodily injury or property damage, including liability for environmental restoration (49 CFR 387.5 (opens in a new tab)).

The schedule in 387.9 has four entries:

Source: 49 CFR 387.9, Table 1 (opens in a new tab).

Who must carry these minimums

The federal financial responsibility rules apply to for-hire carriers hauling property in interstate or foreign commerce. They also apply to carriers hauling hazardous materials, hazardous substances or hazardous wastes in interstate, foreign or intrastate commerce (49 CFR 387.3 (opens in a new tab)).

There are limits. The rules generally do not apply to vehicles under 10,001 pounds GVWR, except for certain high-hazard loads. They also do not apply to non-bulk oil or non-bulk hazardous materials moved within one state, except highway route controlled quantities of radioactive material (49 CFR 387.3(c) (opens in a new tab)).

A private carrier hauling its own nonhazardous goods across state lines is not listed in the $750,000 row of the federal table. Whether and how much coverage such a carrier must have may depend on other law, such as Arizona's own requirements described below.

Arizona state minimums

Some trucks never leave Arizona. A gravel hauler in the East Valley or a local delivery company may operate only within the state. Arizona has its own financial responsibility law for the commercial vehicle operators it covers.

Under A.R.S. 28-4033 (opens in a new tab), minimum coverage includes:

Arizona's law describes these as combined single limit liability coverage. It also sets separate minimums for passenger carriers.

Under A.R.S. 28-4032 (opens in a new tab), these requirements apply to people who operate a vehicle or combination with a declared gross weight over 20,000 pounds in Arizona in the furtherance of a commercial enterprise, people transporting certain hazardous materials, and certain passenger carriers. Interstate for-hire carriers must also meet the federal minimums described above.

Umbrella and excess policies

The federal and state numbers are minimums. Many trucking companies buy more coverage, often through layers:

• Primary policy. The first layer, which pays first up to its limit.

• Excess or umbrella policy. Additional layers that may apply once the primary limit is used up.

Excess policies can have their own terms, conditions and exclusions. Whether a particular layer applies depends on the policy language.

Some carriers may also be authorized by FMCSA to self-insure, if they keep a satisfactory safety rating (49 CFR 387.7(d)(3) (opens in a new tab)). That can change who pays and how a claim is handled.

Multiple policies: broker, shipper and others

A single truck crash can involve several businesses. Each may carry insurance, and each may share fault:

• The motor carrier that operated the truck.

• The owner of the tractor or the trailer, if different from the carrier, such as a leasing company.

• A freight broker that arranged the load and chose the carrier.

• A shipper or loader that packed or secured the cargo.

• A maintenance shop that worked on the brakes or tires.

Whether any of these companies is responsible depends on the facts. Our guide to who is liable in a truck accident explains each one in more detail.

Finding every policy takes investigation. Federal insurance filings for interstate carriers may show some coverage. Full details, including excess layers, often come out only through formal requests in the claim or lawsuit. Evidence also matters here. Records such as bills of lading and dispatch documents can identify the broker, shipper and other parties. See our guide to truck accident evidence.

The MCS-90 endorsement

Interstate motor carriers must keep proof of their required financial responsibility. One accepted form of proof is the MCS-90 endorsement attached to the carrier's insurance policy (49 CFR 387.7(d)(1) (opens in a new tab)). Endorsements must be in the form FMCSA prescribes and must say that coverage stays in effect continuously until terminated (49 CFR 387.15 (opens in a new tab)).

In plain terms, the MCS-90 is a safety net for the public. Under the form, the insurer agrees to pay a final judgment against the carrier for public liability caused by negligence in operating, maintaining or using vehicles subject to the federal rules. This can apply whether or not the specific vehicle is listed on the policy. The carrier then generally must repay the insurer for amounts the insurer would not otherwise have owed.

The MCS-90 obligation is limited to the amounts stated in the endorsement, which generally track the federal minimum, and courts have not always agreed on when it applies.

Can a trucking company cancel coverage right before a crash? Federal rules require 35 days' written notice to cancel a required policy (49 CFR 387.7(b)(1) (opens in a new tab)).

What this means for your claim

1. The minimum is not a cap. Federal and Arizona amounts are floors. Your claim is based on your actual losses, not the minimum coverage.

2. Know the cargo and route. Whether the truck was interstate or intrastate, for-hire or private, and what it was hauling can change which minimum applies.

3. Look for every policy. Excess coverage and other companies' policies may be available.

4. Arizona does not cap damages in injury cases. The Arizona Constitution says the amount recovered for injury or death shall not be subject to any statutory limit (Ariz. Const. art. 2, § 31 (opens in a new tab); art. 18, § 6 (opens in a new tab)), with a narrow exception for people harmed while engaged in felony conduct. Insurance limits are a practical issue, not a legal cap.

5. Workers' comp may also be involved. If you were hit while working, see our guide for people hurt on the job by a truck.

6. Mind the deadlines. Most Arizona injury lawsuits must be filed within two years (A.R.S. 12-542 (opens in a new tab)).

How insurance limits affect what a claim may be worth is covered in our guide to truck accident settlement value in Arizona. If you are wondering how legal fees fit in, our fee calculator shows how a contingency fee works. The fee percentage and how case costs are handled depend on the case, and if there is no recovery you may still owe case costs., and the written fee agreement controls.

To learn more about how a Phoenix truck accident lawyer can help identify all available coverage, start with a free case review.