###### Editorial Note on [Part 387](/current/title-49/part-387?toc=1)

#### Editorial Note:

Nomenclature changes to part 387 appear at [66 FR 49872](https://www.federalregister.gov/citation/66-FR-49872), Oct. 1, 2001.

#### § 387.303 Security for the protection of the public: Minimum limits.

(a) *Definitions.*

(1) *Primary security* means public liability coverage provided by the insurance or surety company responsible for the first dollar of coverage.

(2) *Excess security* means public liability coverage above the primary security, or above any additional underlying security, up to and including the required minimum limits set forth in [paragraph (b)(2)](/on/2024-09-24/title-49/section-387.303#p-387.303(b)(2)) of this section.

(b)

(1) Motor carriers subject to [§ 387.301(a)(1)](/on/2024-09-24/title-49/section-387.301#p-387.301(a)(1)) are required to have security for the required minimum limits as follows:

(i) *Small freight vehicles:*

| Kind of equipment | Transportation provided | Minimum limits |
| --- | --- | --- |
| Fleet including only vehicles under 10,001 pounds (4,536 kilograms) GVWR | Property (non-hazardous) | $300,000 |

(ii) *Passenger carriers.*

Passenger Carriers: Kind of Equipment

| Vehicle seating capacity | Minimum limits |
| --- | --- |
| (A) Any vehicle with a seating capacity of 16 passengers or more (including the driver) | $5,000,000 |
| (B) Any vehicle designed or used to transport 15 passengers or less (including the driver) for compensation | 1,500,000 |

(iii) *Limits applicable to transit service providers.* Notwithstanding the provisions of [paragraph (b)(1)(ii)](/on/2024-09-24/title-49/section-387.303#p-387.303(b)(1)(ii)) of this section, the minimum level of financial responsibility for a motor vehicle used to provide transportation services within a transit service area under an agreement with a Federal, State, or local government funded, in whole or in part, with a grant under [49 U.S.C. 5307](https://www.govinfo.gov/link/uscode/49/5307), [5310](https://www.govinfo.gov/link/uscode/49/5310) or [5311](https://www.govinfo.gov/link/uscode/49/5311), including transportation designed and carried out to meet the special needs of elderly individuals and individuals with disabilities, will be the highest level required for any of the States in which it operates. This paragraph applies to transit service providers who operate in a transit service area located in more than one State, as well as transit service providers who operate in only one State but interline with other motor carriers that provide interstate transportation within or outside the transit service area. Transit service providers conducting such operations must register as for-hire passenger carriers under part 365, subpart A and [part 390, subpart E of this subchapter](/on/2024-09-24/title-49/part-390/subpart-E), identify the State(s) in which they operate under the applicable grants, and certify on their registration documents that they have in effect financial responsibility levels in an amount equal to or greater than the highest level required by any of the States in which they are operating under a qualifying grant.

(2) Motor carriers subject to [§ 387.301(a)(2)](/on/2024-09-24/title-49/section-387.301#p-387.301(a)(2)) are required to have security for the required minimum limits as follows:

| Kind of equipment | Commodity transported | Minimum limits |
| --- | --- | --- |
| (i) Freight vehicles of 10,001 pounds (4,536 kilograms) or more GVWR | Property (non-hazardous) | $750,000 |
| (ii) Freight vehicles of 10,001 (4,536 kilograms) pounds or more GVWR | Hazardous substances, as defined in [§ 171.8 of this title](/on/2024-09-24/title-49/section-171.8), transported in cargo tanks, portable tanks, or hopper-type vehicles with capacities in excess of 3,500 water gallons, or in bulk explosives Division 1,1, 1.2 and 1.3 materials. Division 2.3, Hazard Zone A material; in bulk Division 2.1 or 2.2; or highway route controlled quantities of a Class 7 material, as defined in [§ 173.403 of this title](/on/2024-09-24/title-49/section-173.403) | 5,000,000 |
| (iii) Freight vehicles of 10,001 pounds (4,536 kilograms) or more GVWR | Oil listed in [§ 172.101 of this title](/on/2024-09-24/title-49/section-172.101); hazardous waste, hazardous materials and hazardous substances defined in [§ 171.8 of this title](/on/2024-09-24/title-49/section-171.8) and listed in [§ 172.101 of this title](/on/2024-09-24/title-49/section-172.101), but not mentioned in paragraph (b)(2)(ii) or [paragraph (b)(2)(iv)](/on/2024-09-24/title-49/section-387.303#p-387.303(b)(2)(iv)) of this section | 1,000,000 |
| (iv) Freight vehicles under 10,001 pounds (4,536 kilograms) GVWR | Any quantity of Division 1.1, 1.2, or 1.3 material; any quantity of a Division 2.3, Hazard Zone A, or Division 6.1, Packing Group I, Hazard Zone A material; or highway route controlled quantities of Class 7 material as defined in [§ 173.455 of this title](/on/2024-09-24/title-49/section-173.455) | 5,000,000 |

(3) Motor carriers subject to the minimum limits governed by this section, which are also subject to Department of Transportation limits requirements, are at no time required to have security for more than the required minimum limits established by the Secretary of Transportation in the applicable provisions of [49 CFR Part 387](/on/2024-09-24/title-49/part-387)—Minimum Levels of Financial Responsibility for Motor Carriers.

(4) *Foreign motor carriers and foreign motor private carriers.* Foreign motor carriers and foreign motor private carriers (Mexican), subject to the requirements of [49 U.S.C. 13902(c)](https://www.govinfo.gov/link/uscode/49/13902) and [49 CFR part 368](/on/2024-09-24/title-49/part-368) regarding obtaining certificates of registration from the FMCSA, must meet our minimum financial responsibility requirements by obtaining insurance coverage, in the required amounts, for periods of 24 hours or longer, from insurance or surety companies, that meet the requirements of [49 CFR 387.315](/on/2024-09-24/title-49/section-387.315). These carriers must have available for inspection, in each vehicle operating in the United States, copies of the following documents:

(i) The certificate of registration;

(ii) The required insurance endorsement (Form MCS-90); and

(iii) An insurance identification card, binder, or other document issued by an authorized insurer which specifies both the effective date and the expiration date of the insurance coverage.

(5) Notwithstanding the provisions of [§ 387.301(a)(1)](/on/2024-09-24/title-49/section-387.301#p-387.301(a)(1)), the filing of evidence of insurance is not required as a condition to the issuance of a certificate of registration. Further, the reference to continuous coverage at [§ 387.313(a)(6)](/on/2024-09-24/title-49/section-387.313#p-387.313(a)(6)) and the reference to cancellation notice at [§ 387.313(d)](/on/2024-09-24/title-49/section-387.313#p-387.313(d)) are not applicable to these carriers.

(c) *Household goods motor carriers: Cargo liability.* Security required to compensate individual shippers for loss or damage to property belonging to them and coming into the possession of household goods motor carriers in connection with their transportation service;

(1) For loss of or damage to household goods carried on any one motor vehicle—$5,000,

(2) For loss of or damage to or aggregate of losses or damages of or to household goods occurring at any one time and place—$10,000.

[[47 FR 55944](https://www.federalregister.gov/citation/47-FR-55944), Dec. 14, 1982]

###### Editorial Note

#### Editorial Note:

For Federal Register citations affecting [§ 387.303](/on/2024-09-24/title-49/section-387.303), see the List of CFR Sections Affected, which appears in the Finding Aids section of the printed volume and at *[www.govinfo.gov](http://www.govinfo.gov).*

###### Effective Date Note

#### Effective Date Note:

At [82 FR 5307](https://www.federalregister.gov/citation/82-FR-5307), Jan. 17, 2017, [§ 387.303](/on/2024-09-24/title-49/section-387.303) was suspended, effective Jan. 14, 2017. At [84 FR 51433](https://www.federalregister.gov/citation/84-FR-51433), Sept. 30, 2019, the suspension was lifted and amendments were made to [§ 387.303](/on/2024-09-24/title-49/section-387.303). In that same document, [§ 387.303](/on/2024-09-24/title-49/section-387.303) was again suspended indefinitely.