Temporary Voluntary Revocation of Authority

Discussion in 'Ask An Owner Operator' started by ConcreteCowboy, Oct 25, 2014.

  1. ConcreteCowboy

    ConcreteCowboy Light Load Member

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    I am considering temporarily revocating my authority and everything I have heard and everybody I have talked to at DOT, state Motor Carrier division and OOIDA make it sound like it is no big deal. I just pay a $80 reinstatement fee, file my BOC and insurance and everything goes back to as it was before I revoked the authority. So, why do I still have doubts that somehow this won't go smoothly with the DOT? I know - me of such little faith in the government.

    The only obstacle I hit was with insurance. When you reinstate, some companies will go back to considering you a new carrier and will raise your rates.

    Has anybody revoked their MC authority and then had it reinstated and, if so, did you run into any unexpected obstacles with the process?
     
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  3. gokiddogo

    gokiddogo Road Train Member

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  4. Skate-Board

    Skate-Board Road Train Member

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    If people check you out it will show up that your authority was revoked then reinstated. Your insurance company will send out notifications within 30 days of your revocation that your out to all brokers and companies. When you reinstate your pretty much starting from ground zero with everyone again.
     
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  5. G/MAN

    G/MAN Road Train Member

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    Some brokers will consider you as being new once your authority is revoked, whether voluntary or not. Some insurance companies might try to hit you with a higher rate and consider you as a new business. I have a friend who went through this last year. For him it wasn't a big deal other than his insurance. He had to pay a little more for his insurance, but other than the rate increase, he has not had a problem.
     
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  6. ConcreteCowboy

    ConcreteCowboy Light Load Member

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    My father passed away and besides his estate and farm I also have my house plus a farm that need much overdue maintenance problems. Plumbers, electricians, etc. Too much work, too little time and nobody really eager to even call back to attempt to get everything scheduled.
     
  7. ConcreteCowboy

    ConcreteCowboy Light Load Member

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    That's a shame... we have been in business for 38 years and starting at ground zero is a terrible thought but paying to keep the trucks legal is too expensive of an option. Clean record with DOT and survived audit, sure don't want to go through that again especially now.

    I can delete coverage on my current policy and cut the premium in half but the other taxes are just too much to think about to pay on a truck that isn't earning a dime.

    It certainly wasn't planned and we just had a complete "go over" of the truck to fix all minor problems, bought new batteries and replaced truck and trailer tires. Just wondering the best option but I am leaning towards shutting it down.
     
  8. ConcreteCowboy

    ConcreteCowboy Light Load Member

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    I just read my previous post about starting at ground zero and it hit me with all the new regulations flying around we are all flying below ground zero.
     
  9. dirthaller

    dirthaller Heavy Load Member

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    I've always wondered if you could change from "common authority" to "contract authority" then there would be no reason to revoke. Just cancel insurance and shut down. Brokers don't care whether or not you're a contract carrier.
    The way I read it, "common" and "contract" are the same except "common" makes you have insurance on file.
    I always suggest "new entrants" get "contract" authority for that reason. I know it works. I just wonder if there is a way to change "common" to "contract".
     
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  10. G/MAN

    G/MAN Road Train Member

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    We have always been required to have liability insurance, whether you have common or contract authority. As I recall, it was cargo that wasn't required under contract authority. A few years ago the fmcsa decided to not make a difference between the two and they now only require liability insurance. I don't know if there is a difference now with new applicants. When I first got my authority there was a difference, but that has been a long time ago.
     
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  11. dirthaller

    dirthaller Heavy Load Member

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    I thought cargo insurance was the only thing you had to have on file with the FMCSA.
     
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