Insurance
Generally, all motor carriers and brokers are required to keep proof of insurance on file with DMV's Motor Carrier Services. Your certificate or permit may be revoked if you fail to keep the proof of insurance on file. Exceptions to this requirement include:
- TNC brokers, who are not required to have insurance.
- Property carriers exclusively operating passenger cars, motorcycles, autocycles, mopeds and vehicles with a gross vehicle weight rating of 10,000 pounds or less. Although required to carry insurance, such carriers are not required to keep proof of the coverage on file with DMV.
- Carriers who have deactivated their vehicle fleets.
- Carriers who are self-insured.
The amount of the insurance required depends on the type operating authority you hold and the types of vehicles you operate. The following chart contains information on the minimum liability insurance amounts for each authority type, as provided under Virginia’s motor carrier laws.
| Operating Authority Type | Minimum Insurance Amounts |
|---|---|
| Transportation of Passengers Broker | No insurance required |
| Transportation Network Company (TNC) Broker | $1 million |
| Common Carrier - Regular Routes Contract Passenger Carrier Employee Hauler Sight Seeing Carrier Non-Emergency Medical Transportation Carrier | Minimum insurance required depends on the seating capacity of the vehicle, including the driver: $350,000 - 1 to 6 people $1,500,000 - 7 to 15 people $5,000,000 - 16 or more people |
| Property Carriers exclusively operating passenger cars, motorcycles, autocycles, mopeds, and vehicles with a gross vehicle weight rating of 7,500 pounds or less | From the time a request to transport property has been accepted and the vehicle is en route to pick up the property until the time the property has been removed from the vehicle and delivered to its final destination: $100,000 per person and $300,000 per incident for death and bodily injury and $50,000 for property damage. At all other times when available to transport property for compensation. |
| Property Carriers exclusively operating vehicles with a gross vehicle weight rating of 7,501-10,000 pounds | $300,000 liability insurance |
| Property Carriers operating vehicles with a gross vehicle weight rating over 10,000 pounds (including Household Goods Carriers) | $750,000 liability insurance $50,000 cargo insurance if transporting household goods |
| Common Carrier - Irregular Routes | Minimum insurance required depends on the seating capacity of the vehicle, including the driver: $350,000 - 1 to 6 passengers $1,500,000 - 7 to 15 passengers |
| Non-Profit/Tax-Exempt Passenger Carrier | Minimum insurance required depends on the seating capacity of the vehicle, including the driver: $1,500,000 - 7 to 15 passengers $5,000,000 - 16 or more passengers |
| Taxicab | $125,000 |
Surety Bond/Irrevocable Letter of Credit
Certain authority types are required to file a surety bond or an irrevocable letter of credit with DMV's Motor Carrier Services. The bond/letter of credit is to protect the public from any potential loss or damage associated with the services you provide. Your certificate or license may be revoked if you fail to keep the surety bond or irrevocable letter of credit on file.
The amount of the bond/letter of credit depends on the type of authority you obtain. The length of time that you must keep the bond/letter of credit on file also depends on the type of authority you obtain.
The following chart contains information on the minimum bond/letter of credit amounts and the length of time it must be maintained for each authority type.
| Operating Authority Type | Minimum Amount | How Long It Must Be Maintained |
|---|---|---|
| Transportation of Passengers Broker | $25,000 | Always |
| Transportation Network Company (TNC) Broker | $25,000 | Always |
| Household Goods Carrier | $50,000 | 5 years from the date the certificate is issued |
| Common Carrier - Irregular Routes Common Carrier - Regular Routes Contract Passenger Carrier Sight Seeing Carrier Non-Emergency Medical Transportation Carrier | $25,000 | 3 years from the date the certificate is issued |
| Employee Hauler Non-Profit Tax-Exempt Passenger Carrier Property Carrier Taxicab | none | not applicable |
Orders of Suspension and Revocation
If your insurance or surety bond is being cancelled or is expiring, you will be issued an order of suspension. If you don't comply with the terms in the order of suspension, an order of revocation will be issued. Once the revocation becomes effective, you will have to reapply for original operating authority and meet all of the application requirements.