Last Updated June 9, 2025
There are plenty of differences between interstate and intrastate trucking that extend beyond just operating across state lines vs. within state lines. And whether you run your own trucking company, drive a semi-truck, or simply work in the industry, it’s critical to know the ins and outs interstate vs. interstate trucking.
For business owners, the differences between interstate and intrastate involve everything from the type of licensing you need to trucking authority requirements. And for drivers, CDL requirements vary depending on if you’re crossing state lines or not.
With this in mind, here’s what you should know when deciding between interstate vs. intrastate trucking.
Interstate vs. Intrastate Trucking: How Are They Different?
Differences between interstate vs. intrastate commerce have a major influence on how you operate your business or drive your truck. Below is a general overview of the two.
Interstate Trucking
Interstate trucking involves any commercial trucking activity that carries products or people across state lines. Interstate loads (and drivers) must follow the federal regulations established by the Federal Motor Carrier Safety Administration (FMCSA). This includes obtaining trucking authority, a DOT number, and a CDL.
Because of the long distances involved in interstate trucking, loads tend to be much larger than those transported within state boundaries. Most interstate trucking businesses use semi-trucks, tanker trucks, and flatbeds. Dry vans and car transporters are common examples of interstate trucking.
Intrastate Trucking
Intrastate commerce means your trucking business exclusively operates within its home state. Intrastate carriers don’t have to worry about the federal requirements governing interstate trucking, but they must still be compliant with all state requirements. Each state has its own set of requirements for intrastate trucking, and drivers should check with their state DMV to know if they need a CDL, operating authority, or other licensing requirements.
Because intrastate trucking usually involves shorter-distance transportation, semi-trucks aren’t used as often as they are in interstate trucking. Intrastate trucking businesses are more likely to involve tow trucks or box trucks, though tanker trucks and flatbeds may also be used.
Interstate vs. Intrastate CDL
Interstate vs. intrastate license requirements are one of the main areas where your trucking business can differ. While FMCSA oversees licensing requirements for obtaining a CDL, requirements can vary depending on whether you will be involved in interstate or intrastate driving.
Interstate CDL
Interstate drivers must obtain a CDL to drive as part of a commercial trucking business. If you drive a truck and trailer with a gross combined weight rating (GCWR) of 26,001 pounds or more, or a trailer with a GVWR of 10,001 pounds or more, you’ll need a CDL. A CDL is also required when transporting hazardous materials.
Federal CDL requirements include being 21 years old, not having disqualifying criminal offenses, and completing an entry-level driver training program. Additional endorsements may be required depending on the type of vehicle you will operate or the type of freight you will transport.
As part of the driver qualification to obtain the commercial learner’s permit, drivers must also provide a current driver’s license, 10-year driving history, and medical certification. Drivers obtain an interstate CDL through their home state’s DMV.
Intrastate CDL
Intrastate drivers usually need a CDL to operate box trucks, semi-trucks, livestock carriers, and other commercial vehicles. However, individual states can have different requirements for intrastate drivers. For example, Arizona allows drivers as young as 18 to obtain a CDL for intrastate use only, and military members can complete a Military Skills Test Waiver rather than take a CDL skills test.
Because each state’s requirements can vary, it’s a good idea to look up your state’s CDL requirements to ensure you have all the necessary paperwork and qualifications, regardless of whether you plan on applying for an interstate or intrastate CDL.
Interstate vs. Intrastate Insurance Requirements
Operating as an interstate carrier vs. intrastate carrier can also influence the level of insurance you are required to carry. This will have a direct impact on your trucking insurance costs.
Interstate Insurance
Interstate carriers must meet the federal standards for insurance requirements. To obtain an MC number for interstate commerce, owner-operators must carry a minimum of $750,000 in auto liability/BIPD (or $300,000 for non-hazardous freight in vehicles under 10,0001 pounds). They also need a minimum cargo insurance coverage of $5,000 per vehicle and $10,000 per occurrence.
Generally speaking, semi-trucks and other vehicles used for interstate transport have much higher liability requirements than vehicles used for intrastate work. Increased mileage and time on the road comes with increased risk, and FMCSA wants drivers to be covered appropriately.
Intrastate Insurance
Intrastate trucking companies don’t have to meet the federal minimum requirements for trucking insurance. However, you will still need to meet the insurance requirements for your state, which will likely include coverage for liability, cargo, and physical damage. While state legal minimums may be lower than federal interstate requirements, many trucking brokers and customers will only work with companies that have a higher level of coverage.
Because of this, in addition to checking with your state’s Department of Transportation to confirm its minimum insurance requirements, you should also look at the policies of the customers you plan to serve. If you plan to finance your truck, you’ll also need to review lender coverage requirements.
Regardless of whether you run an interstate or intrastate trucking company, you’ll also need to consider coverage for health insurance and occupational accident coverage.
Interstate vs. Intrastate Authority
Trucking authority is another essential aspect of starting a trucking business. Having trucking authority gives an owner-operator the legal authority to work as a private carrier or an independent trucker. With trucking authority, owner-operators have the ability to choose their freight, loads, and routes, negotiate rates, and improve their income potential.
As with other parts of running a trucking business, whether you need authority can differ depending on if you plan on operating an interstate or intrastate trucking company.
Interstate Authority
Trucking authority is required for working as an interstate owner-operator. To get interstate authority, you need to register your business, get a DOT number and motor carrier number, and apply for insurance. You’ll also need to complete several other tasks, including filling out the BOC-3 form, HVUT registration, IRP registration, getting a UCR permit, and opening an IFTA account. Drivers must also pass a drug and alcohol test.
Obtaining interstate authority requires that you remain compliant with all federal regulations for trucking businesses. Your business will be subjected to a “New Entrant” audit after you’ve been operating your business for 18 months.
Intrastate Authority
Just like with other parts of operating an intrastate trucking business, whether or not you need authority depends on the state you live and work in. Registration fees tend to be much lower than what is required for interstate authority. While requirements vary by state, they also tend to be much simpler than the process for obtaining interstate authority. However, many states still require that you obtain a DOT number as part of their process.
Currently, 26 states require intrastate authority: Alabama, Arkansas, California, Georgia, Hawaii, Illinois, Iowa, Kansas, Michigan, Minnesota, Mississippi, Missouri, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.
Interstate vs. Intrastate FAQs
Can CDLs be transferred from one state to another?
Yes, you can transfer your CDL from one state to another. However, you’ll need to visit the DMV in your new state, where you’ll surrender your CDL from your old state. You’ll need to provide proof of your new address when you go in. Depending on the state, you may also need to provide a recent medical exam or retake the written or skills test. Most states require that you go through this process within 30 to 60 days of becoming a resident of a new state, but others let you keep your old CDL until it expires.
What states require intrastate authority to drive in?
The following states require intrastate authority: Alabama, Arkansas, California, Georgia, Hawaii, Illinois, Iowa, Kansas, Michigan, Minnesota, Mississippi, Missouri, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.
Do I need interstate or intrastate authority?
If you cross state lines as part of your trucking business, you need interstate authority. If you operate exclusively within your home state, you may or may not need intrastate authority, depending on your state’s requirements.
What is the difference between interstate excepted and intrastate?
An interstate excepted driver is an interstate driver who doesn’t need to meet the requirements for a federal DOT medical card. An intrastate excepted driver doesn’t have to meet their state medical requirements. Non-excepted interstate vs. intrastate drivers must meet federal DOT card requirements or state medical requirements.
How do I change my DOT from intrastate to interstate?
To change your DOT, interstate vs. intrastate DOT regulations require that you obtain interstate operating authority, update registration information with FMCSA, get a DOT medical exam, and update insurance policies and other permits or licenses. If your CDL has a K restriction, you’ll need to update your CDL as well.
Michael McCareins is the Content Marketing Associate at altLINE, where he is dedicated to creating and managing optimal content for readers. Following a brief career in media relations, Michael has discovered a passion for content marketing through developing unique, informative content to help audiences better understand ideas and topics such as invoice factoring and A/R financing.
