Deciding between interstate trucking and intrastate trucking can determine whether you’re home for dinner with your family or spending weeks on the road chasing bigger paychecks. Many new carriers struggle with this decision because the regulatory differences can impact your business for years.
At OTR Solutions, we support both interstate and intrastate carriers with factoring, fuel discounts, and business tools that help you grow, no matter which path you choose. This guide breaks down the key differences between interstate vs. intrastate trucking so you can make the right decision for your business.
What Is the Difference Between Interstate and Intrastate Trucking?
Understanding the difference between interstate vs. intrastate trucking is critical for choosing the right operating authority and compliance path.
Interstate trucking involves hauling freight across state lines or international borders. This means your loads cross at least one state boundary during transit. Interstate carriers are regulated by the Federal Motor Carrier Safety Administration (FMCSA) and must obtain federal operating authority.
Intrastate trucking operates exclusively within a single state’s borders. Your pickup and delivery locations stay within the same state. These carriers are regulated at the state level, typically by their state’s Department of Transportation.
Think of it like the difference between flying internationally and domestically, each route requires different permissions and follows different sets of rules.
Interstate Trucking
Interstate operations open access to freight markets across the U.S. You can haul loads from California to New York, Texas to Michigan, or anywhere freight moves across state lines. With new trucking regulations in 2025, staying compliant is even more critical for interstate carriers.
Requirements for interstate trucking:
- A USDOT number from the FMCSA
- An MC (Motor Carrier) authority number
- Federal operating authority
- Minimum insurance coverage of $750,000 or more [1]
Common examples:
- Long-haul carriers transporting freight coast to coast
- Regional carriers operating in multiple states
- Specialized haulers crossing state lines
- Expedited cross-country freight services
While interstate trucking offers access to higher-paying lanes and broader markets, it also brings more complex compliance rules and higher startup costs. As of March 2024, there were over 577,000 active US motor carriers registered with FMCSA that own or lease at least one tractor, with 95.5% operating 10 or fewer trucks [2].
Intrastate Trucking
Intrastate trucking focuses on hauling freight within a single state. You might drive from Houston to Dallas, Los Angeles to San Francisco, or Atlanta to Savannah, without ever crossing state lines.
These operations offer a simpler compliance path, which is especially appealing as trucking technology continues to make local operations more efficient.
Requirements for intrastate trucking:
- A state-level DOT number (varies by state)
- State operating permits
- Lower insurance minimums, depending on the state
- Compliance with state regulations only
Common applications:
- Local delivery and in-state logistics
- Construction or specialized freight
- In-state distribution and warehouse networks
- Same-day or regional expedited deliveries
Intrastate trucking typically has lower startup costs and fewer regulatory hurdles, making it ideal for new carriers or businesses focusing on local markets. For example, California’s 2024 ELD mandate for intrastate carriers impacted over 197,000 vehicles that were required to upgrade their logging equipment [3].
Key Differences: Interstate vs. Intrastate Trucking
The core differences between interstate vs. intrastate trucking affect everything from compliance to cost. Use the table below to compare the two and determine which best fits your business goals:
| Factor | Interstate Trucking | Intrastate Trucking |
| Geographic Scope | Crosses state or international borders | Operates within single state only |
| Licensing & Authority | DOT + MC number from FMCSA | State DOT number and permits |
| Insurance Requirements | $750,000+ federal minimums | Lower state-determined minimums |
| Freight & Distance | Long-haul, cross-country loads | Local, regional, same-state delivery |
| Compliance Complexity | Federal FMCSA regulations | State-level rules and oversight |
| Startup/Operating Costs | Higher due to federal requirements | Lower with simplified compliance |
How to Decide Which Is Right for Your Trucking Business
Choosing between interstate vs. intrastate trucking depends on your business goals, startup capital, and long-term plans. Use the factors below to guide your decision:
Business Goals
If you’re aiming to tap into national markets and higher-paying freight, interstate authority offers the scale and flexibility to get there. If you prefer local routes, consistent schedules, and more time at home, intrastate trucking may better support your lifestyle and business goals.
Cost of Entry and Compliance
Interstate carriers face higher insurance minimums, federal safety compliance, and more complex reporting. Intrastate carriers can often launch with lower costs and simpler state-level oversight. Regardless of your path, fuel efficiency and cost control remain critical to long-term profitability.
Target Customers and Routes
Shippers with multi-state operations usually need interstate capacity to keep supply chains moving. On the other hand, local businesses, construction firms, and regional distributors often turn to intrastate carriers for their familiarity with the area and faster turnaround.
Flexibility and Future Expansion
Interstate authority allows you to haul freight anywhere in the U.S., offering greater flexibility as your business grows. Intrastate authority can limit expansion unless you apply for federal authority later on. The trucking industry moved 11.27 billion tons of freight in 2024, with volume expected to reach 13.99 billion tons by 2035, a signal that both local and national opportunities are on the rise [4].
How OTR Solutions Supports Both Interstate and Intrastate Carriers
Whether you’re running long-haul interstate routes or managing local intrastate deliveries, OTR Solutions is here to support your business with reliable factoring, fuel discounts, and industry-leading tools.
Our TRUE Non-Recourse Factoring protects carriers from non-paying brokers—no chargebacks, ever. With the OTR Fuel Card, you can save an average of $0.50 per gallon at over 2,500 in-network locations across the country.
Services available to all carriers:
- TRUE Non-Recourse Factoring with no chargebacks
- OTR Fuel Card accepted at 8,000+ locations
- OTR Mobile App for invoice submission and fuel finding
- Dedicated operations team for unmatched support
- OTR Clutch business checking accounts
- 24/7 Broker Checks
- …and more!
From coast-to-coast hauls to local freight runs, we help interstate and intrastate carriers maintain strong cashflow and reduce operating expenses. Use our Fuel Finder technology to locate the lowest diesel prices along your route and get paid faster with same-day funding.
Looking ahead, the FMCSA plans to phase out MC Numbers in 2025, consolidating carrier identifiers under DOT numbers to reduce fraud and simplify compliance [5].
Secure your cashflow and start saving today.
Apply now to learn how OTR Solutions helps you succeed, whether you run interstate, intrastate, or both.
Frequently Asked Questions
Get quick answers to common questions about interstate and intrastate trucking operations.
What is the difference between interstate and intrastate trucking?
Interstate trucking involves crossing state lines and requires federal operating authority through the FMCSA. Intrastate trucking stays within one state and is regulated by that state’s Department of Transportation.
Can I switch from intrastate to interstate trucking?
Yes, you can expand your operation by obtaining a DOT number and MC authority from the FMCSA. This transition involves additional compliance, insurance, and registration requirements.
Do I need different insurance for interstate trucking?
Interstate carriers must meet higher federal insurance minimums (typically at least $750,000) compared to the lower, state-determined requirements for intrastate carriers.
Is intrastate trucking cheaper to start?
Generally, yes. Intrastate operations have fewer regulatory requirements, lower insurance thresholds, and simpler startup procedures, making them more affordable for new carriers.
Which is better: interstate or intrastate trucking?
It depends on your goals. Interstate trucking offers greater market access and higher revenue potential, while intrastate trucking provides local consistency, lower costs, and more home time. The right choice comes down to your business model and long-term vision.
References:
- Trucking Insurance Services: FMCSA Insurance Requirements: What New Trucking Companies Need To Know
- American Trucking Associations: Economics and Industry Data
- CNS Protects: 200K CA Vehicles Must Meet New Intrastate ELD Requirements
- American Trucking Associations: ATA U.S. Freight Transportation Forecast to 2035
- Bright Order: FMCSA Regulations 2025: Key Updates and Changes