CA MCP insurance requirements: limits, filings and fees

Who needs a California MCP

The DMV requires an MCP before you start operating if any of the following applies. Size does not matter for paid hauling: a courier on a motorcycle needs one too.

Household goods movers and passenger carriers operate under the California Public Utilities Commission instead. Carriers that haul only U.S. mail under a Postal Service contract, or only freight containers, are treated as interstate and do not need an MCP. Some pickups under 11,500 pounds GVWR used non-commercially are exempt.

• You are paid to haul property in any vehicle (a for-hire carrier).
• You operate a commercial vehicle of 10,001 pounds GVWR or more, even to haul your own goods (a private carrier).
• You transport hazardous materials in any vehicle.
• You run a truck-and-trailer combination longer than 40 feet.
• Your vehicle or combination requires a commercial driver’s license.

Minimum liability limits for a California MCP

Vehicle Code 34631.5 sets the minimums, and the DMV handbook maps them to the activity you declare on your application. The limit covers injuries and damage to other people’s property, not the freight you are hauling, so cargo insurance is not part of the MCP requirement. Brokers and shippers often ask for more than these minimums.

How the MC 65 M insurance filing works

You do not send the DMV your declarations page. Your insurer files a Certificate of Insurance (MC 65 M) directly with the DMV. Under 34631.5 it must come from an insurer licensed in California or an eligible surplus lines (nonadmitted) insurer; the handbook also accepts risk retention groups, and a surety bond (MC 55 M) is another accepted form of proof.

You can stack a primary and an excess policy to reach a higher limit, such as $1 million for hazmat, but the handbook says two separate primary policies cannot be combined, and the permit is suspended if the primary policy cancels. Fleets of 25 or more vehicles whose required limit is no more than $750,000 can apply to self-insure with a cash deposit instead.

If you also run interstate, your FMCSA filing does not replace the MC 65 M. Section 34631.5 requires interstate carriers operating in California to file a DMV-authorized certificate too, and the DMV issues them a non-expiring MCP.

Workers’ comp: proof or a signed exemption

Every MCP applicant must show compliance with California’s workers’ comp law. The DMV accepts an MC 65 M from your workers’ comp insurer, an electronic filing from State Compensation Insurance Fund, a state certificate to self-insure or a signed statement that you have no employees subject to the law.

The exemption is narrower than many owners expect. The DMV handbook says coverage is required even for one part-time employee, and a carrier that employs only family members must carry it unless the only family employee is a spouse. If your workers’ comp lapses, the permit is suspended the same day.

Cancellations, lapses and suspended permits

Under 34631.5, an insurer cannot cancel an MC 65 M on less than 30 days’ written notice to the DMV, and your permit is suspended on the cancellation date unless a new certificate is on file. The handbook allows no hearing for insurance suspensions. To reinstate, a new MC 65 M must be filed and you pay a $150 reinstatement fee under Vehicle Code 34671.

Operating while suspended, or without a permit, is a misdemeanor punishable by a fine of up to $2,500, up to three months in county jail or both, and the CHP can impound your vehicles, according to the DMV.

An old certificate on the DMV’s file is not coverage. In 2023 the California Supreme Court held in Allied Premier Insurance v. United Financial Casualty that a policy does not stay in force past its expiration date just because the insurer has not cancelled the certificate with the DMV.

What the permit itself costs

On top of your premium, the DMV charges annual permit fees based on whether you are for-hire or private and how many power units you run; trailers do not count. The total combines a base fee and a Carrier Inspection Fee, and late payment adds penalties of 60% to 160% of the fees due. Intrastate permits run 12 months from the first day of the month you apply.

How to meet the requirement without overpaying

The cheapest way to clear the MCP floor is to describe your operation accurately and keep the filing continuous.

• Buy the limit your operation actually triggers. A for-hire cargo van fleet with no hazmat needs $300,000, not $750,000, unless a broker or customer contract asks for more.
• Reach hazmat limits with primary plus excess if that prices better than one large primary policy.
• Renew before your expiration date and pay premiums on time; a cancellation for nonpayment suspends the permit.
• When switching insurers, have the new MC 65 M filed before the old policy ends.
• If you stop hauling, file a voluntary withdrawal (MC 716 M) before cancelling insurance to avoid delinquency fees later.
• Compare several insurers for the same limits. A broker such as Florin can compare options from insurers that make California MCP filings.