It is illegal to operate a commercial vehicle in Iowa without sufficient insurance.
The Iowa Department of Insurance works with state courts and the Iowa Department of Motor Vehicles to set guidelines on the amount of insurance commercial motor vehicle owners are required to carry on their autos. Commercial auto insurance minimum levels are designed to protect commercial vehicle owners and other drivers and pedestrians in the state. Failure to comply with the laws will cause violators to receive fines and penalties.
Financial Responsibility
For-hire motor carriers who transport people or property as part of an interstate commerce agreement are required to carry liability insurance on their motor vehicle. Commercial vehicles that transport any amount of hazardous materials must also have the minimum level of state mandated liability insurance on them. Additionally, owners of companies that operate a fleet of motor vehicles that transport hazardous materials must make sure that each of their vehicles is adequately insured.
Registration
Interstate carriers and private for-hire commercial drivers who transport hazardous materials are required to register with the United States Department of Transportation (USDOT). They will receive a USDOT number when they register. The number is used to catalog commercial motor vehicles with the Federal Motor Carrier Safety Administration's Unified Carrier Registration System (UCRS).
Insurance Levels for Heavier Commercial Vehicles
Vehicles that weigh 10,000 or more pounds must carry at least $750,000 in public liability insurance. This law applies to commercial vehicles that do not carry hazardous materials, including tow trucks. If a motor vehicle transports hazardous materials it must have at least $5 million in public liability insurance coverage on it. Motor vehicles that transport only oil are required to have a minimum of $1 million in public liability insurance coverage.
Insurance Levels for Lighter Commercial Vehicles
If a motor vehicle weighs less than 10,000 pounds it must have at least $300,000 of liability insurance on it. When vehicles weighing less than 10,000 pounds carry hazardous materials, the minimum liability insurance they need is $5, million. Buses and trucks that transport 16 or more passengers must have at least $5 million in liability insurance coverage, while commercial vehicles that transport fewer than 16 passengers are required to carry at least $1.5 million in liability insurance.
Proof of Insurance
Operators of commercial vehicles should carry proof of motor vehicle insurance on them at all times when they operate their vehicle. Local, state and federal law enforcement officials like state troopers, police officers and peace officers are allowed to request the proof of insurance any time the driver operates the commercial vehicle. Failure to provide proof of insurance could cause commercial drivers to receive fines and penalties. Drivers could also have their vehicle impounded and their vehicle registration plates seized by law enforcement officials or by the Iowa Department of Transportation. Copies of insurance policies and Iowa intrastate permits serve as proof of insurance.
