The Motor Carrier Act requires motor carriers to have minimum liability limits in which range?

• A. $100,000 to $300,000
• B. $750,000 to $5,000,000
• C. $1,000,000 to $2,000,000
• D. $50,000 to $100,000

Answer: (B)

The requirement tests your understanding of minimum financial responsibility for motor carriers under federal law. The Motor Carrier Act sets different minimum liability limits depending on the type of operation. Transporting property typically requires at least $750,000 in liability coverage, while transporting passengers carries much higher minimums, up to $5,000,000. The range from $750,000 to $5,000,000 reflects these differences in risk: goods carry less potential for large bodily injury claims than carrying many passengers, so the minimums scale with the level of risk. States may have their own rules, but the federal baseline for common motor carrier operations spans roughly that range.