04/10/2025
With over $2 billion in trade crossing daily, Laredo is a powerhouse for U.S.-Mexico trucking. But with opportunity comes risk:
- strict insurance regulations,
- cross-border coverage challenges, and
- high cargo theft rates
These risks make navigating commercial trucking insurance in this region complex. Whether you’re an owner-operator or manage a large fleet, having the right insurance is essential to staying compliant and protecting your business. This guide breaks down everything you need about coverage requirements, legal considerations, cross-border insurance, and risk management strategies to keep your operations safe and profitable.
Coverage Requirements for Fleets
All commercial trucking businesses must carry minimum liability insurance as required by Texas and federal regulations.
Texas Minimum Insurance Requirements
For general vehicles, Texas law requires:
- $30,000 per person for bodily injury
- $60,000 per accident
- $25,000 for property damage
For commercial trucks operating within Texas (intrastate):
- $500,000 minimum liability coverage
For interstate trucking (across state lines), the Federal Motor Carrier Safety Administration (FMCSA) mandates:
| Type of Carrier | Minimum Coverage Required |
| General freight carriers | $750,000 |
| Oil transporters & specific hazardous materials | $1,000,000 |
| Hazardous substances | $5,000,000 |
In high-traffic areas like Laredo, most brokers and shippers require at least $1,000,000 in liability coverage to secure contracts.
Legal Requirements & Essential Coverages
Aside from liability insurance, Laredo carriers should consider additional coverage for complete protection.
| Insurance Type | What It Covers | Why It’s Important in Laredo |
| Commercial Auto Liability | Third-party bodily injury & property damage | Required by law; essential for protecting against accident claims |
| Physical Damage | Damage to your truck (accidents, fire, theft) | Protects your fleet investment in a high-traffic area |
| Motor Truck Cargo | Loss, theft, or damage to cargo | Crucial due to high-value goods crossing the border |
| Bobtail Insurance | Covers trucks without a trailer | Needed when trucks operate between loads |
| Non-Trucking Liability (NTL) | Covers trucks when not under dispatch. It provides coverage for a truck that is not used for business purposes. It means it protects the truck when the driver is using it for personal use, such as travelling home or running personal errands | Helps independent owner-operators stay protected |
| Occupational Accident Coverage | Employee injuries & medical expenses | Protects drivers & businesses from unexpected costs |
| Commercial Trucking Insurance | Comprehensive coverage for trucking businesses, including liability, cargo, and physical damage | Essential for Laredo’s trucking hub, ensuring full protection for fleets and cargo |
| Solo Trucking Insurance | Coverage for independent owner-operators, including liability and physical damage | Vital for solo drivers navigating the busy cross-border routes |
Work with an experienced insurance agent who understands the unique challenges of cross-border trucking.
Tailoring Coverage Needs for Your Fleet
After understanding the basic insurance requirements, the next crucial step is tailoring coverage that fits your specific fleet operations.
Factors Affecting Insurance Needs and Costs
- Fleet size and operational scope impact coverage requirements.
- Small owner-operators need different policies from large carriers.
- Texas-only carriers have different risks than those crossing into Mexico.
- Key considerations: fleet size, vehicle types, cargo value, operational radius, and driver experience.
Essential Insurance Coverages
- Commercial auto liability – Covers damages your vehicles cause to others.
- Physical damage insurance – Protects your vehicles from accidents, theft, fire, and natural disasters.
- Cargo insurance – Safeguards transported freight against damage, theft, or loss.
| Insurance Type | What It Covers | Why It’s Important for Laredo Carriers |
| Commercial Auto Liability | Third-party bodily injury and property damage caused by your vehicles | Mandated by law; protects against lawsuits and claims in high-traffic border areas |
| Physical Damage | Damage to your vehicles from accidents, theft, fire, or other events | Protects fleet investments in an area with high traffic density and variable road conditions |
| Motor Truck Cargo | Loss, theft, or damage to cargo during transport | Essential given the high value of cross-border commerce through Laredo |
Beyond these core coverages, Laredo carriers should evaluate additional protection options.
- Bobtail insurance covers your trucks when operating without trailers or when they are not actively hauling loads.
- Non-trucking liability provides coverage during personal use or when not under dispatch.
- Occupational accident coverage is crucial for carriers with employees, protecting against workplace injuries and related expenses.
Cross-Border Insurance Considerations
Laredo carriers transporting goods into Mexico must consider special insurance policies, as U.S. coverage often does not extend across the border.
Cross-Border Trucking Challenges
🔴 Cargo theft risk – Over 17,000+ thefts annually in Mexico vs. 721 in the U.S.
🔴 Coverage limitations – Mexican law only requires $2 per pound of cargo in liability coverage
🔴 Road conditions – Poor infrastructure increases accident risks
Recommended Cross-Border Insurance
To avoid coverage gaps, trucking companies should invest in bi-national policies that provide continuous protection in both the U.S. and Mexico.
Key Features of Cross-Border Coverage:
✅ Covers accidents & liability on both sides of the border
✅ Protects against cargo theft risks
✅ Meets U.S. and Mexican insurance requirements
Work with specialized providers who understand customs regulations and legal differences for reliable cross-border insurance.
Risk Management Strategies for Lower Insurance Costs
Beyond meeting legal requirements, implementing risk management practices can help reduce premiums and improve safety. The strategies and processes used to identify, assess, and mitigate potential risks that could impact their operations, finances, or reputation, can help fleets to minimize losses, improve safety, and ensure long-term success.
Fleet Safety Program Essentials
- Regular driver training – Focus on securing cargo and cross-border safety
- GPS tracking & telematics – Monitor truck locations and prevent cargo theft
- AI-powered dash cams – Detect unsafe driving behaviors and reduce liability claims
Why Risk Management Matters
- Prevents costly accidents and lawsuits
- Keeps insurance premiums lower over time
- Increases driver and cargo safety
Protect Your Trucking Business in Laredo with SafeGuard Insurance Agency
Securing the right trucking insurance in Laredo is crucial to operating legally and protecting your assets. Whether you run a single truck or manage a large fleet, working with an insurance provider specializing in commercial trucking ensures that you stay compliant and protected
For customized insurance solutions, contact SafeGuard Insurance Agency to find the best coverage for your fleet.
FAQs About Truck Insurance
1. How much does truck insurance cost?
Truck insurance costs vary based on factors like the type of truck, cargo, driving history, and coverage limits. Your insurance provider can offer personalized quotes based on your specific needs. Contact an expert agent to get an estimate.
2. What types of trucking insurance are required by law?
Federal and state laws mandate certain coverages, including general liability insurance. Texas requires at least $500,000 in liability coverage for intrastate operations, while federal requirements for interstate trucking range from $750,000 to $5 million, depending on cargo type.
3. Does personal auto insurance cover my commercial truck?
No, personal auto insurance does not cover commercial trucks. You need a dedicated trucking insurance policy to protect your business from liability, theft, damage, and accidents.
4. What additional coverages should I consider?
Beyond commercial auto liability insurance, additional coverages like physical damage, motor truck cargo, trucker’s general liability, occupational accident, cross-border, bobtail insurance, and non-trucking liability can provide essential protection for your truck, cargo, and business operations.
5. How can I lower my truck insurance premiums?
Premiums can be reduced through safety programs, GPS tracking, dash cams, maintaining a clean driving record, choosing higher deductibles, and working with an agent to find lower insurance costs.
6. Is towing included in trucking insurance?
Many trucking insurance policies include towing, but it’s not always standard. Check with your provider to ensure it’s part of your coverage. At Safeguard Insurance Agency, towing is included, providing peace of mind.
7. Will my trucking insurance cover border crossings into Mexico?
Not all U.S. policies cover international operations. If you transport goods into Mexico, you must purchase an additional cross-border insurance policy to remain compliant and fully protected.
8. Why do I need cargo insurance for cross-border trucking?
Cargo insurance protects against theft, loss, or damage. Given Laredo’s high cargo theft rates, this coverage is crucial for securing your shipments.
9. What is bobtail insurance, and do I need it?
Bobtail insurance covers liability when a truck is driven without a trailer but is still under dispatch en route to a pick-up location. It’s important for owner-operators who operate their trucks between loads.
10. Do I need non-trucking liability insurance?
Yes, if you drive your truck when not under dispatch, non-trucking liability insurance covers personal use and offers additional protection.
11. What happens if my cargo is stolen in Mexico?
Without specialized cargo insurance, you may not be fully compensated. A cross-border policy with theft coverage is recommended to protect against such losses.
12. Are there special insurance requirements for hazardous materials?
Yes, trucks carrying hazardous materials must have liability coverage ranging from $1 million to $5 million, depending on the transported material.
13. Can I get insurance if I have a new trucking business?
Yes, but your premiums may be higher due to a lack of operational history. Partnering with a trucking insurance specialist can help you find competitive rates.
14. Why should I work with an insurance provider specializing in trucking?
Trucking insurance specialists understand the industry’s risks, legal requirements, and cross-border challenges, ensuring you get tailored coverage that protects your fleet.
15. When should I update my trucking insurance coverage?
Life and business changes—such as adding trucks, expanding routes, or hiring new drivers—may require policy updates. Regular reviews ensure you remain adequately covered.
16. How can I compare truck insurance quotes effectively?
Instead of focusing solely on price, compare coverage details, benefits, exclusions, and customer service quality to find the best policy for your needs.
