Insurance Before Your Authority Activates

What must be filed

A for-hire property carrier must have its insurer file proof of public liability coverage with FMCSA. The minimum amount depends on what you haul. Household goods carriers also need cargo coverage on file. Customers and brokers often expect more than the federal minimum, including motor truck cargo coverage.

Why new carriers pay more

Insurers price risk partly on a company's history. A new authority has none, so underwriters lean on the owner's and drivers' experience, driving records, the trucks and the freight. Fewer insurers write new authorities, which narrows the options.

How to prepare

• CDL details and motor vehicle records for every driver
• Your years of driving experience and any previous carrier work
• Truck and trailer VINs and values
• Planned commodities and operating radius
• Where trucks will be parked overnight
• Any lender or lessor that needs to be listed

Down payments and payment plans

Many trucking policies require a down payment and monthly installments. Budget for it as a start-up cost, alongside plates, permits and the first fuel bills. If a payment is missed, the insurer can cancel the policy and notify FMCSA, which puts the authority at risk.

After coverage starts

Ask the agent for certificates of insurance for brokers and shippers. Store copies where drivers can get them, and confirm that the FMCSA record shows the filing.

Keeping the filing active

Your authority depends on the filing staying in place. If the policy is cancelled, the insurer notifies FMCSA, and the authority can be revoked unless replacement coverage is filed. Keep payments current and talk to your agent before any change.

Frequently asked questions