Louisiana Commercial Auto Insurance Requirements (2026)

Louisiana's minimum commercial auto liability limits

Louisiana law sets a liability floor for every motor vehicle registered in the state. The ordinary minimum is a split limit: $15,000 for bodily injury or death to one person, $30,000 for bodily injury or death to two or more people in one accident, and $25,000 for property damage in one accident.

In a split limit, each number has a different scope. The $15,000 bodily injury limit is the most the policy will pay for one injured person. The $30,000 bodily injury limit is the total available when two or more people are hurt in the same accident. It is not $30,000 for each injured person. The $25,000 property damage limit is the most the policy will pay for property damage in one accident.

These numbers are a legal floor, not a recommended coverage level. One accident involving several occupants or an expensive vehicle can exhaust the entire bodily injury and property damage pool at the minimum. Contractors should compare limits against their actual loss potential and any contract requirements before treating the statutory floor as enough.

The required liability policy does not cover every exposure. Louisiana law specifically says the required policy need not cover workers' compensation liability, employee bodily injury arising in employment, or damage to property owned by, rented to, controlled by, or transported by the insured. That means the statutory minimum protects other people. It does not pay for your truck, your tools, or your employees' injuries.

Louisiana law expressly permits a motor vehicle policy to provide coverage above or in addition to the required minimum. Higher limits, commercial auto endorsements, and umbrella policies are all available and commonly purchased by contractors who need to satisfy contract requirements or protect against larger claims.

Which requirement applies to your vehicles

The 15/30/25 floor is not the only rule. Vehicle weight, cargo type, for-hire status, and interstate travel can each trigger a different minimum. Identifying which authority controls the limit for each vehicle in your fleet is the first step before selecting coverage.

Vehicles over 50,000 pounds gross vehicle weight

Louisiana Revised Statutes 32:900 includes a $300,000 combined single limit for vehicles with gross vehicle weight over 50,000 pounds. The statute's heavy-vehicle provisions contain categories and exceptions, so this should not be applied as a blanket rule to every heavy truck. Check the current provision against the specific vehicle and operation.

Federal requirements for for-hire property carriers

The Federal Motor Carrier Safety Administration sets separate financial-responsibility requirements for entities with federal operating authority. Those requirements vary by entity type, authority, cargo, and vehicle type. The agency will not grant operating authority until the required financial responsibility is on file.

A common error is applying the federal $750,000 figure to every vehicle over 10,001 pounds. That number applies specifically to non-hazardous for-hire property carriers using vehicles with a gross vehicle weight rating of at least 10,001 pounds. A contractor hauling only its own tools to its own jobs is not necessarily in the same federal category as a for-hire property carrier.

The MCS-90 endorsement and federal filings

The Federal Motor Carrier Safety Administration's endorsement chart identifies the MCS-90 insurance endorsement or MCS-82 surety endorsement for all for-hire and interstate motor carriers in its chart. Whether a contractor needs this endorsement depends on whether the business holds federal operating authority or operates as a regulated motor carrier. A certificate showing a large limit does not substitute for the correct federal filing or endorsement.

Before selecting limits, classify each vehicle by weight, cargo, for-hire status, and interstate travel. The answers determine which authority controls the minimum and whether federal filings are required.

Coverage gaps the state minimum leaves open

Louisiana's liability requirement protects other people. It does not pay for damage to your truck, stolen tools, a rented vehicle, or an employee's personal car used for a work errand. These are the exposures the minimum leaves uncovered.

Own-vehicle damage: collision and comprehensive

Collision and comprehensive coverage are not part of the statutory liability minimum. Collision generally covers damage from impact or overturn, subject to a deductible. Comprehensive covers causes such as theft, vandalism, weather, glass breakage, or animal contact. A lender or lessor may require collision and comprehensive coverage on a financed or leased vehicle even though the state does not.

Hired auto and non-owned auto liability

An owned-auto schedule does not automatically cover every vehicle your business uses. Hired and non-owned auto liability addresses two common exposures. Hired auto covers vehicles the business rents, leases, or borrows for a job. Non-owned auto covers the business's liability when an employee uses a personal vehicle for a work errand. Neither replaces the vehicle owner's personal insurance or pays for damage to the employee's car.

Tools, materials, and cargo in transit

Louisiana's required liability policy need not cover damage to property owned by, rented to, controlled by, or transported by the insured. Loose tools, materials, and customer property inside the truck are typically excluded from both liability and physical damage coverage. A separate tools and equipment policy or inland marine coverage is usually needed for those items.

Identifying which exposures your fleet actually has is the first step toward the right coverage. Trades Coverage can compare your account against a marketplace with 400+ carrier and market options, and licensed support is available in 30 states. A free quote request takes about two minutes and creates no obligation.

Contract and certificate requirements above the state minimum

Construction agreements often impose insurance conditions well above Louisiana's statutory floor. A general contractor, project owner, lender, or landlord may require a combined single limit instead of split limits, an umbrella or excess policy, additional insured status on the auto policy, waiver of subrogation wording, or primary and noncontributory language.

A certificate of insurance shows evidence of coverage at a moment in time. It cannot add a covered-auto category, change an exclusion, add a party, or extend a limit by itself. Any required status or wording must be supported by the actual policy or endorsement before the certificate is issued.

An umbrella or excess policy also requires alignment. The underlying commercial auto policy must be scheduled where required, carry the necessary underlying limit, and avoid a gap in covered autos or drivers. Louisiana law permits coverage above the minimum, but that does not establish that a particular umbrella follows every term of the auto policy.

Uninsured and underinsured motorist coverage in Louisiana

Louisiana automobile liability policies generally include bodily-injury uninsured motorist (UM) coverage at the policy's liability limits unless the named insured takes a specific action. The named insured may reject UM, select lower limits, or select economic-only coverage on the prescribed form. The selected UM limit generally cannot be below the motor-vehicle minimum unless economic-only coverage is chosen.

A properly completed selection or rejection can persist through renewals, reinstatements, substitute policies, and amendments issued to the same named insured by the same insurer or affiliate. The insured can change the choice during the policy term by submitting a new prescribed selection form. Changes to liability limits may require a new selection.

UM coverage can protect insured people who are legally entitled to recover bodily-injury damages from an uninsured or underinsured driver, subject to the statute and policy terms. The statute contains rules about owned vehicles not described in the policy and about no-contact accidents, so UM does not automatically follow every employee or cover every hit-and-run. Review the signed Louisiana selection form, limits, economic-only choice, covered persons, and covered vehicles with your agent.

How carriers price a Louisiana commercial auto policy

No two commercial auto quotes are the same. Carriers in Louisiana use specific details about your vehicles, drivers, operations, and claims history to set the premium. Having these details ready when you request a quote helps you get accurate comparisons.

Vehicle details

Carriers ask about each vehicle's year, make, model, body type, gross vehicle weight rating, current value, and permanently attached equipment. A service body truck with a crane is rated differently from a standard pickup. The number of vehicles, their garaging locations, and whether they are owned, leased, or financed all affect the premium.

Driver records and fleet size

Every driver's license history, experience, violations, and accident record is part of the underwriting review. A fleet with clean driving records pays less than one with recent violations or at-fault accidents. The number of drivers and their assignments to specific vehicles also matter.

Operating radius, loss history, and limits

Carriers consider where the vehicles operate: local, regional, or interstate. A contractor working within a 50-mile radius of a single Louisiana parish is rated differently from one that crosses state lines regularly. Prior claims, the size of those claims, and the number of years of loss history all influence the premium. Higher limits and lower deductibles cost more. The specific coverages selected (liability only, liability plus physical damage, hired and non-owned auto) each add to the total.

Common commercial auto mistakes Louisiana contractors make

These are the mistakes that lead to denied claims, rejected certificates, and audit surprises. Each one is preventable if you check the details before requesting a quote or certificate.

Wrong named insured on the policy

Louisiana's owner's policy statute requires the policy to designate covered vehicles and insure the named insured and permissive users. If the trucks are registered to an LLC but the policy names the individual owner, or vice versa, the mismatch can create problems at claim time and on certificates. The named insured on the policy should match the entity that owns or registers the vehicles.

Undisclosed or excluded drivers

Louisiana law permits a named-person exclusion on a commercial policy if the owner maintains a separate policy for that person with equal coverage. An excluded driver who operates a company vehicle without the required alternative coverage can create a serious claim problem. Likewise, an employee whose driving record was never disclosed to the carrier may not be covered the way the business expects.

Applying the federal $750,000 limit to every heavy vehicle

The $750,000 FMCSA requirement applies to non-hazardous for-hire property carriers using vehicles with a gross vehicle weight rating of at least 10,001 pounds. A contractor hauling its own tools and materials to its own jobs is not automatically a for-hire property carrier. Buying $750,000 in coverage is not harmful, but assuming the federal rule applies when it does not can lead to confusion about filings, endorsements, and the correct policy structure.

Frequently asked questions about Louisiana commercial auto insurance

These questions cover the situations Louisiana contractors ask about most often when shopping for commercial auto insurance.

One quote request lets you compare available options from carriers that insure commercial vehicles in Louisiana. Actual quotes depend on carrier review of your vehicles, drivers, operations, and loss history. The request is free and creates no obligation. Prefer to talk? Call (888) 698-7698 to speak with a licensed representative.