Authority without a truck?

Discussion in 'Ask An Owner Operator' started by younglite, Oct 17, 2018.

  1. Rideandrepair

    Rideandrepair Road Train Member

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    There’s no reason you can’t get authority while leasing into another Carrier. Or while running a McDonalds franchise or any other Venture.I really don’t think Cargo is required unless booking a Load . Just Liability Minimum of $750 k Which is the expensive part . Cargo isn’t much and Collision/ Theft/Fire Comprehensive depends on Value of equipment.Youre already paying that most likely if you’re leased to a Carrier Only need to add Value of Trailer. I’ve heard Ins Cos charging double or more for New Operations due to many Problem with New Carriers in recent few years.I currently pay around $8000 yr total includes $20k Truck and $10 k Traiker Values
     
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  3. younglite

    younglite Bobtail Member

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    Yep. Been working for this company for a year. They approached me. They want O/Os, and are willing to pay well. Plenty of freight. But they don't lease on - you have to get your own authority.

    To be clear, Penske won't lease me a truck without my own authority. I can't get authority without their insurance. That is the catch-22 I'm trying to navigate.
     
    Last edited: Oct 19, 2018
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  4. wichris

    wichris Road Train Member

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    When the insurance is filed it has to be in the exact name as the authority. Penske insurance is in their name.
     
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  5. younglite

    younglite Bobtail Member

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    Good point. I have heard that. So are you saying all the "yes" answers are incorrect here? I DO have to get a truck with insurance in my name, even if I plan to lease from Penske later?
     
  6. Rideandrepair

    Rideandrepair Road Train Member

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    I meant if someone doesn’t want to give me a Load I question their actually having said Freight. A lot of Brokers will advertise potential loads to get a feel for availability of Trucks in the Lane. I understand now. Either way You need authority and Your own Public Liability insurance. If using anyone else’s Authority/ Ins. must have Leases agreement. There is no catch 22. You need authority to Get Contract and to Lease Truck. You need Liability Ins. (Public Liability 1 ml to Cover any damage you do to others Property) to get authority. You will probably need Cargo ins to cover Value of Freight your hauling from damage or theft etc. The collision on Truck Leased will depend on Penske agreement/ requirements.
     
  7. Rideandrepair

    Rideandrepair Road Train Member

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    You can’t get Authority WITH their Insurance. Must be your insurance.I think you may have insurance policies needed confused
     
  8. Bumblebee101

    Bumblebee101 Light Load Member

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    My insurance is about 15k a year with 100k cargo. Truck is newer valued at 98k and the trailer was brand new at 31k. It is crazy that I hear guys post 20k plus a year for the same thing. I always thought Massachusetts was crazy when it came to auto insurance but I guess not.
     
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  9. Rideandrepair

    Rideandrepair Road Train Member

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    I can’t justify paying that much and would probably Lease on somewhere instead
     
  10. Rideandrepair

    Rideandrepair Road Train Member

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    No you don’t need a Truck to get your Authority! You don’t even need the ins to get the mc#. Once you get it you have time around 6 wks ( not sure exactly how much time) but they tell you when they issue mc#. until you put Liability ins on file your mc# remains inactive and will be forfeited after said time.After you buy 750 Liability ( enough to run 1 Truck) the mc# becomes active. Later when ready to run increase Liability to 1 million if required to get Contract and buy Cargo for the amount required to get Contract from Customer. Then buy or Lease Truck or Lease on an O/O and keep the insurance for whatever Truck is operating under your Authority on file.Can be a totally different insurance Company or added to Same Company for ease of billing or discounts . The Liability Ins And Cargo Ins. needed to have an active Authority is filed with the DOT/ fmcsa. The only other ins needed is to cover Truck and Trailer totally different policy. Of course you can add or bundle with existing policy if Truck / Trailer is in your name whether buying/ leasing Or paid in full . If leasing on an O/O you need a copy of whatever ins they have to cover their equipment in order to show all operations as being run legally
     
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  11. Bumblebee101

    Bumblebee101 Light Load Member

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    My insurance only went up $3000 tops from when I was leased on. It was well worth it finically. Down side I am selling my truck and trailer. The army decided its time to deploy again. After 17 years of driving I am pretty much ok if I never drive again when I get back.
     
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