How Your Report Affects Your Insurance
Your insurance profile tells underwriters, brokers, and shippers what kind of risk your carrier represents. This section of your report shows your current coverage, your authority status, and your insurance history; all of which affect whether you can get loads and what you pay for coverage.
What the Insurance Profile Shows
Your profile includes:
- Coverage on file with FMCSA; what policies FMCSA has on record for you right now
- Authority status; whether you are federally authorized, state-only, or inactive
- Insurance history; your total policies, cancellations, replacements, and distinct insurers over time
What Is BIPD Coverage?
BIPD stands for Bodily Injury and Property Damage. It is the liability coverage required by federal law for all for-hire motor carriers. The federal minimum has been $750,000 since 1980 (49 CFR §387.9) and has never been adjusted for inflation. Many brokers and shippers now require more than the federal minimum.
What Happens When BIPD Is Not on File
If FMCSA does not have active BIPD coverage on file for your carrier:
- Your authority can be flagged or suspended
- Your ISS score is negatively affected
- Brokers will not dispatch loads to you
- You may be unable to renew your operating authority
Always keep your BIPD coverage active and make sure your insurance company files the correct forms (Form BMC-91 or BMC-91X) with FMCSA.
What "Active Coverage" Means
Active coverage means your policy is current, paid, and properly filed with FMCSA. Gaps in coverage; even for a few days; create red flags. Underwriters see gaps as signs of financial stress or administrative problems. Some brokers will not work with carriers who have had a coverage gap in the past 12 months.
Understanding Your Authority Status
| Status | What It Means | Practical Impact |
|---|---|---|
| Federal Authorized | You have active FMCSA authority to haul freight across state lines | Full access to interstate loads and major brokers |
| State-Only | You are authorized only for intrastate commerce within your state | Limited to loads that do not cross state lines |
| Federal Inactive | Your federal authority is suspended or revoked | Cannot legally haul interstate freight; brokers will blacklist you |
What Authority Revocations Mean
If your federal authority is revoked, you lose your right to operate as a for-hire carrier. Revocations happen for reasons like failure to maintain insurance, failure to update your MCS-150 form, or serious safety violations. A revocation shows up publicly on FMCSA's website and is visible to every broker and shipper you try to work with.
Insurance History (InsHist)
Your insurance history tracks the total number of policies you have held, how many were cancelled, how many were replaced, and how many different insurers you have used. Underwriters use this to spot patterns:
- Frequent cancellations suggest you are shopping because of rate increases or non-renewals
- Many different insurers suggest you have been bounced around the market
- Replacements without gaps are less concerning than cancellations with gaps
What the Volatility Score Means
Your volatility score is calculated as:
100 × cancellations / total policies
A high volatility score; generally over 40; is a red flag for underwriters. It tells them your coverage history is unstable, which usually leads to higher premiums or outright declination. Keeping the same insurer for multiple years and avoiding cancellations keeps this score low.
Per-Carrier Insurance Estimate
Based on your BASIC percentile profile, this section shows what renewal impact range carriers like yours have historically seen. If your BASICs are clean, you are likely to see standard or preferred rates. If you have flagged BASICs, especially Unsafe Driving or Crash Indicator, expect significant increases at renewal.
Why Tier 1 Brokers Require $1M+ Coverage
Major brokers like Amazon Relay, TQL, C.H. Robinson, Uber Freight, J.B. Hunt, and Coyote (RXO) require $1,000,000 or more in liability coverage, even though the federal minimum is only $750,000. This is their risk management policy, not a federal rule. If you want access to their freight networks, you must meet their requirements. Some also require specific cargo coverage limits.
The Texas Rate Context
If you operate in or are based in Texas, you should know that commercial trucking insurance rates in the state rose 72.9 percent between 2017 and 2024 TDI Commercial Auto Biennial Report, Nov 2024. The combined ratio; a measure of whether insurers are making or losing money; has averaged 116 percent since 2011 TDI Commercial Auto Biennial Report, Nov 2024. (Source: Texas Department of Insurance, Commercial Auto Biennial Report, November 2024.) A combined ratio over 100 percent means insurers are paying out more in claims than they collect in premiums. This is why rates keep climbing and why underwriters are getting pickier about which carriers they cover.
National Context
Per ATRI's Operational Costs of Trucking: 2025 Update, auto liability insurance costs for small-fleet specialized carriers rose from $0.102 per mile (industry average) ATRI 2025 OC p.42 → ATRI-Operational-Costs-of-Trucking-07-2025.md:744 to $0.210--$0.213 per mile for small specialized fleets ATRI 2025 OC p.43 → ATRI-Operational-Costs-of-Trucking-07-2025.md:1985. The industry combined ratio reached 108.5 percent AM Best via ATRI 2025 OC p.45 → ATRI-Operational-Costs-of-Trucking-07-2025.md:2093, and trucking insurance costs per mile have risen 36 percent over the past eight years ATRI 2025 TII p.12 → ATRI-Top-Industry-Issues-2025.md:484; even as truck crash rates declined over the past four years. These figures reflect the market environment every for-hire carrier operates in regardless of individual safety record.
What You Can Do
| What Underwriters Look At | What High Risk Looks Like | What To Do |
|---|---|---|
| Coverage gaps | Any lapse in BIPD coverage | Set up autopay and calendar reminders 30 days before renewal |
| Volatility score | Over 40 cancellations-to-policies ratio | Avoid switching insurers unless necessary; never let a policy cancel for non-payment |
| BASIC percentiles | Flagged Unsafe Driving or Crash Indicator | Retrain drivers, invest in dash cams, and challenge incorrect violations |
| Authority status | Inactive or revoked authority | Keep MCS-150 current, maintain insurance filings, and respond to FMCSA notices immediately |
| Insurance history | Multiple insurers in short time | Build a relationship with one insurer and improve your safety record to earn loyalty discounts |
Your insurance profile is just as important as your safety score. Underwriters and brokers look at both before they decide to work with you. Keeping your coverage continuous, your authority active, and your BASICs clean is the best way to control your costs and keep your trucks moving.
Sources: 49 CFR §387.9 (federal minimum financial responsibility for for-hire property carriers); Texas Department of Insurance, Commercial Auto Biennial Report (November 2024); ATRI, Operational Costs of Trucking: 2025 Update (pp. 42--45); FMCSA Volpe Center Financial Responsibility Study.
See also: How we built this: a plain-English walkthrough of the ISS recreation and how the per-carrier insurance impact projection is computed.