A for-hire motor carrier operating in interstate commerce must have $5 million insurance for any vehicle that seats 16 passengers or more. The minimum insurance for vehicles that transport less than 16 passengers is $1.5 million. This applies, for example, when a private bus company takes people across state lines to a casino or from one state to another, like Greyhound or Megabus. These minimum insurance amounts are required by Title 49 of the Code of Federal Regulations, Part 387.
The federal minimum limits do not apply to school buses that transport students and teachers to and from school. Also, the minimum insurance limits do not apply to a bus operated by a motor carrier under contract with a school district when transporting preschool, elementary and secondary school student. A small minority of states have adopted 48 CFR 387, which means the limits apply in those states. In other states, it is necessary to look to state minimum insurance limits.