What does 49 CFR 387.33 (Financial responsibility, minimum levels) require?

Short answer

49 CFR 387.33 requires for-hire motor carriers of passengers to have minimum levels of financial responsibility, which are $5,000,000 for vehicles with a seating capacity of 16 passengers or more and $1,500,000 for vehicles with a seating capacity of 15 passengers or less.

The rule says

"Any vehicle with a seating capacity of 16 passengers or more, including the driver $5,000,000" (49 CFR 387.33)

"Any vehicle with a seating capacity of 15 passengers or less, including the driver 1,500,000" (49 CFR 387.33)

In plain English

This rule sets the minimum insurance requirements for passenger-carrying motor carriers, which helps ensure they have enough financial resources to cover potential damages or losses in case of an accident. The amounts are higher for larger vehicles, reflecting the greater potential risks and liabilities. Motor carriers must obtain and maintain these minimum levels of financial responsibility to operate legally.

What to do

• Verify your vehicle's seating capacity to determine the required minimum financial responsibility level.
• Obtain the necessary insurance coverage or surety bonds to meet the minimum financial responsibility requirements.
• Maintain proof of financial responsibility at your principal place of business, as required by 49 CFR 387.31.
• Ensure that your insurance policies or surety bonds remain in effect continuously, with at least 35 days' notice for cancellation.