Trucking insurance in Kentucky

Kentucky intrastate trucking insurance requirements

Hauling intrastate means picking up and delivering the same cargo within Kentucky, with no state line crossed. Any business that gets paid to haul someone else's property counts as a for-hire carrier. Carriers paid to haul within the state (intrastate or interstate alike) must purchase a Kentucky Intrastate Authority Certificate. To verify which credentials your operation needs, you can get in touch with the Kentucky Division of Motor Carriers.

A Kentucky-based carrier working only inside the state owes an application fee and another $10 for every vehicle in the fleet. If you haul both inside and outside the state, a $25 application fee is required (whatever your base state). For-hire carriers from out of state that do both kinds of hauling must also fill out Section 6 and file Form E. Your insurance company sends Form E straight to the state as official proof of coverage, by mail or via the National Online Registries website.

Send Form E rather than an insurance card, since the Division of Motor Carriers won't take the card; the state finishes applications within 7 to 14 working days of receipt. Because an agent who writes trucks daily can get your insurer to file Form E electronically, working with one keeps your paperwork moving.

County clerk rules for Kentucky commercial truck insurance

The county clerk requires proof of insurance with a commercial designation when you register a commercial vehicle. Kentucky mandatory insurance rules set the base state liability minimums: bodily injury, $25,000 per person; everyone in 1 accident, $50,000; property damage, $25,000. A $60,000 single-limit policy works in place of split limits, too.

At registration time, Kentucky won't take coverage placed with surplus lines carriers, whether it's commercial or personal auto liability. A surplus lines insurer is a specialty company that the state guaranty fund doesn't back. Before putting down a policy deposit, we always suggest consulting a commercial truck insurance agent; the right agent can arrange coverage with a standard insurer approved by the county clerk.

Credentials and weight taxes by truck size

A USDOT number is required for any vehicle used in commerce rated at 10,001 pounds or more gross weight. Past 26,000 pounds, or with 3 or more axles on the truck, Kentucky adds credentials for fuel and registration, and they depend on where you drive:

• Above 26,000 pounds, or running 3 or more axles, while staying inside Kentucky: reporting fuel use tax calls for a Kentucky Intrastate Tax License (the KIT license).
• Crossing state lines above 26,000 pounds or on 3 or more axles: fuel tax means an IFTA license, and IRP filing is required of Kentucky-based interstate carriers working in 2 or more member jurisdictions.
• At 60,000 pounds or heavier: any carrier past 59,999 pounds on Kentucky roads owes Kentucky Weight Distance Tax and must carry a KYU number (the Kentucky Highway Use License). Getting a KYU number costs $0, but you still owe the quarterly mileage tax and IFTA too.

What are the federal limits for Kentucky trucking insurance?

Crossing a state line to haul for-hire means federal rules replace state minimums. To activate your interstate authority, your insurer must submit Form BMC-91, Form BMC-91X, or a BMC-82 bond to the Federal Motor Carrier Safety Administration. Vehicle weight rating and what you haul set the liability minimum you're required to carry.

Meeting the coverage standards freight brokers set

Freight brokers often want higher limits before you're able to haul their loads, even though federal requirements ask for only $750,000 on file, and $300,000 for lighter fleets below 10,001 pounds.

As one example, C.H. Robinson asks carriers for auto liability of $1,000,000 and cargo liability of $100,000. Talking with a trucking-policy agent helps you line up limits and filings with the brokers you'd like to haul for.

Questions people ask