Interstate vs. Intrastate: What is the Difference?

Are you a new truck driver with your CDL (Commercial Driver’s License) and ready to hit the road? If you own your trucking business, you need to ensure you have the right type of operating authority before starting operations. The choice largely depends on whether you will be operating intrastate or interstate. The trucking industry frequently uses the terms interstate commerce and intrastate commerce, often confusing the two. Here, we’ll highlight the key differences to help you determine which type of authority fits your business model best.

What is Interstate Commerce 

Interstate commerce involves the buying, selling, or transporting of products, services, or funds across state lines. This type is most common in the trucking industry, as many truckers haul loads between states. This type of commerce is regulated by the Federal Motor Carrier Safety Administration (FMCSA) and requires the operator to hold an MC number and a USDOT number from the Department of Transportation (DOT).

What is Intrastate Commerce 

Intrastate commerce, as defined by federal motor carrier safety regulations, refers to trade, traffic, or transportation within a single state’s borders. Intrastate trucking means operating exclusively within one state and not crossing state lines. Therefore, operating authority requirements are less strict for intrastate truckers, but specific state laws may still apply.

What Regulations Do Truckers Need to Follow? 

Interstate Trucking 

Interstate trucking allows you to operate across multiple states but comes with additional regulatory requirements. To legally operate under interstate operating authority, truckers must obtain both a USDOT number and an MC number from the FMCSA. Additionally, interstate drivers must adhere to federal motor carrier safety regulations (FMCSRs) and hours of service regulations to ensure safety and compliance across state lines. If hauling hazardous materials, additional federal guidelines apply.

Intrastate Trucking 

For intrastate trucking, operators typically need only a DOT number to meet state requirements for their commercial vehicles. Although intrastate truckers do not require an MC number, some states may still require additional permits or insurance coverage based on specific state laws and insurance requirements. It’s essential to consult with your state’s Department of Transportation for precise requirements, especially if your trucking business involves specialized loads or hazardous materials.

Insurance Requirements 

Insurance coverage varies based on whether the operation is interstate or intrastate and depends on the cargo type, vehicle weight, and state laws.

Interstate Trucking 

For interstate trucking, insurance requirements include liability insurance and, in many cases, cargo insurance to protect against potential losses or damages when crossing state borders. Most interstate truckers also need coverage for hazardous materials if applicable. Ensuring comprehensive insurance coverage aligns with federal regulations and keeps your business compliant across different states.

Intrastate Trucking 

Intrastate truckers have varying insurance requirements, depending on state-specific mandates. While liability insurance is generally mandatory, other types of coverage may depend on the type of cargo and the insurance requirements set by the state. It’s crucial for intrastate trucking companies to verify state requirements to avoid gaps in coverage and ensure they meet state laws for their trucking business.

Types of Trucks Used 

Choosing the right types of trucks depends on whether the trucking operation is interstate or intrastate, as each type of commerce often requires specific vehicle configurations based on distance, cargo, and road conditions.

Interstate Trucking (h3)

For interstate trucking, semi-trucks and tractor-trailers are most commonly used due to their capacity for heavy loads and long-distance travel. These commercial vehicles are optimized for high mileage and durability, meeting federal requirements for safety and efficiency. In addition, flatbed trucks are often used for oversized loads that cross state lines, and tanker trucks may be required for transporting liquids or hazardous materials.

Intrastate Trucking 

Intrastate trucking operations typically involve dump trucks, concrete mixing trucks, and other specialized commercial vehicles tailored for shorter hauls within a single state. The choice of truck may also depend on the cargo type, such as garbage trucks for waste management or smaller flatbed trucks for localized deliveries. These vehicles generally do not require the extensive setup needed for long-haul trucking, making them more suited for intrastate transport.

Our team of trucking experts is ready to help. Give them a call today to find out more about what regulations your new trucking company needs to follow. 913-393-6110