Applying for Authority

Discussion in 'Ask An Owner Operator' started by Kevw45, Aug 11, 2019.

  1. Kevw45

    Kevw45 Light Load Member

    58
    28
    Aug 1, 2019
    0
    I just Registered my business, and now I'm starting the Authority application. A few questions I have:

    1) Can you obtain an Authority to operate before you actually purchase a truck? The instructions I'm reading from a website states that Insurance is required to obtain an authority, yet I don't have a cmv to insure. I can't really read the FMCSA website right now, my internet is down, and I'm trying to view web pages on my phone. What kind of insurance are they referring about? Actual insurance on the vehicle, or just company liability insurance? Or both? I don't know how the whole insurance thing works. Is there two different kinds of Insurances, one for your business, and one for your vehicle or is there just one that includes your business operations, and its assets, (like your truck) but you don't have to submit vehicle information like you do for your personal vehicle insurance? I'm only asking, because if you have to have a cmv to get the insurance to be able to complete the application, and the application takes a month to process, is it expected of me to buy a truck, pay storage fees on it at a truck yard for a month to wait for application approval? How would I even transport the truck from where I bought it, to the place of storage? None of this is making sense to me.

    2) Within the application, it's asking me about what all kinds of freight I intend to haul. Is this some kind of binding inquiry, or just a meaningless questionnaire? How the hell am I supposed to know? I'm not running my own logistics company here, I'm just a motor carrier, I carry whatever someone wants me to carry which could range from general freight, household items, to hazardous materials. How can they expect me to know in advance... Any guidance is appreciated thanks...
     
    Last edited: Aug 11, 2019
    kimbosa Thanks this.
  2. Dino soar

    Dino soar Road Train Member

    1,709
    2,705
    Dec 8, 2017
    0
    Yes for your authority to become active you have to have a truck and have insurance on your truck.

    They assume that you are starting a trucking business and you have a truck and you are ready to go to work so the last step in that is to get your Authority. So you apply for your Authority and before you can actually get your Authority you have to show them proof of insurance for your truck so that you'll be able to go to work with that truck.

    The way that I understand it they will give you three months to show Insurance on your truck, but I believe after that you have to reinstate your Authority. I do not know what is involved with that.

    And then you can not haul any loads until you have proof that you are enrolled in a drug Consortium.
     
    kimbosa and Kevw45 Thank this.
  3. Kevw45

    Kevw45 Light Load Member

    58
    28
    Aug 1, 2019
    0
    Oh I see, so you can complete the authority to operate application, as you don't submit your proof of insurance with the application, your insurance provider submits that separately. I'm just trying figure out what I need to submit the application and get that ball rolling, they say it takes almost a month. And then your authority may be granted after that period, but not active until you provide proof of insurance, which requires the purchase of a vehicle, and submit to a drug consortium, which can all be done at the same time, and fairly quickly to allow your authority to become active, and then you can go to work shortly after...
     
    Last edited: Aug 11, 2019
    Bean Jr. Thanks this.
  4. whoopNride

    whoopNride Road Train Member

    1,546
    4,538
    Jan 13, 2008
    Miss.
    0
    Yes you are thinking correctly. Once you obtain insurance the insurance company will send proof to the fmcsa, then the fmcsa will make your authority active.

    What state are you based in? Have you gotten any quotes on insurance? You could be in for a sticker shock, it is extremely expensive for a new entrant.

    Not trying to rain on your parade at all, but I would definitely get some insurance quotes before I spent the $300 to file for authority.

    With the current state of trucking, there is no way I would attempt to pay 20-30k per year for insurance.
     
    kimbosa Thanks this.
  5. Kevw45

    Kevw45 Light Load Member

    58
    28
    Aug 1, 2019
    0
    I'm in Texas, and no I haven't gotten ins. quotes yet... Haven't entered into that research phase yet. I'm not even sure where to look for it. I don't know who the providers are... They're not exactly advertised to the general public like regular auto insurance, but with just a quick google search, it's said on average, between $8k-$12k/year which is what I was expecting, but yeah, when you throw those numbers out, "20-30k" that would make it seem impossible to start up...
     
    kimbosa Thanks this.
  6. Ridgeline

    Ridgeline Road Train Member

    15,258
    57,434
    Dec 18, 2011
    Michigan
    0
    Insurance should be the first place you start, it is the biggest expense for the business end and I am guessing you will see quotes above $25k a year, it ain't cheap because of how easy it is to get an authority.
     
  7. danny23tx

    danny23tx Heavy Load Member

    790
    868
    Feb 16, 2016
    0
    Yes first year insurance rates are really high .
     
  8. Kevw45

    Kevw45 Light Load Member

    58
    28
    Aug 1, 2019
    0
    I was just quoted by Progressive a policy totaling $17,014/yr.
     
    blacklabel Thanks this.
  9. Midwest Trucker

    Midwest Trucker Road Train Member

    1,685
    3,427
    Aug 31, 2018
    0
    What mileage radius from home base did you tell them you were going to run?
     
  10. Kevw45

    Kevw45 Light Load Member

    58
    28
    Aug 1, 2019
    0
    These are the level of coverages I selected... I mean I have no clue what limits I really should get, so... When I filled out the Authority to Operate application, it told me minimum coverage amount not applicable.
     

    Attached Files:

  • Draft saved Draft deleted