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7.7.1 Exceptions to Minimum Insurance Levels

Regulations do not apply to:

  • A motor vehicle transporting only school children and teachers to or from school, if paid for by school district.
  • A motor vehicle providing taxicab service, with seating capacity of less than 7 passengers, and not operating on a regular route or between specified points.
  • A motor vehicle carrying less than 16 individuals in a single daily round trip to commute to and from work.
  • A motor vehicle operated by a motor carrier under contract providing transportation of pre-primary, primary, and secondary students for extracurricular trips organized, sponsored, and paid by a school district.
  • Certain carriers providing transportation services under the following Federal Transit Administration (FTA) grant fund programs:
    • 49 USC 5307 (Urbanized Area Formula Funding)
    • 49 USC 5310 (Enhanced Mobility of Seniors & Individuals with Disabilities)
    • 49 USC 5311 (Formula Grants for Other than Urbanized Areas)

Passenger carriers that are Federal Transit Administration grantees (Transit Benefit Operators) under 49 USC 5307, 5310, or 5311, are required to maintain liability insurance, at least at the highest level required by any of the States in which the transit service area is located, instead of the usual Federal required levels for for-hire passenger carriers.

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