O/O In Cali AB5 problem and a question about temp authority

Discussion in 'Ask An Owner Operator' started by Carhauler363, Jul 22, 2022.

  1. Carhauler363

    Carhauler363 Bobtail Member

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    So I have been an owner operator leased on driver for over a decade, and now with this dumb AB5 law coming into effect I need to get my own authority. I had a previous DOT and MC number from a short stint independent as a sole prop but now I am incorporated. My insurance lady recommended I keep my MC detached from my current new 2019 DOT number since I only run local and it is a lot cheaper on insurance from what she said. Problem is I am picking up a new Pete in a month and need to drive it back to Cali. Insurance agent said she can get me temp approval but what about not having an MC number attached to my DOT. This will be a one time gig coming back loaded on my car hauler, I plan to stay local after this as I like being home every night. I am also worried about losing my apportioned plate since I am being forced to lease off.

    Thanks
     
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  3. brian991219

    brian991219 Road Train Member

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    If I understand correctly you are currently leased onto a carrier and being forced to get your own authority to comply with AB5. You also have to go get your new truck soon and want to haul a revenue load back to California. Both simple enough.

    What I don't understand is the recommendation from your insurance agent to keep your MC seperated from your DOT number? That isn't legally allowable. Sounds like they are trying to get around filing the MCS-90 and are selling you less insurance than legally required for having your own authority.

    Now you say you only run local, ok and if so then you may not need a MC number if your work is truly intrastate. You may only need a CA number. If that is true then you will not be able to haul a load from out of state when you bring your truck back to California because there is no such thing as temporary interstate authority.

    Where I am again confused is you are worried about losing your apportioned plates when you give up your lease and get your own authority. This will depend on who owns the plates, you or the carrier you are currently leased to. If you own the plates you will just need to update the motor carrier responsible for safety to show as your US DOT number.

    Keep in mind though, without a MC number you won't need apportioned plates because you can't cross state lines without Federal authority (MC number). If your work requires you to cross state lines or haul freight that came from or is going out of state such as from/to a port or railhead then you need a MC number and a new insurance agent as they have no clue what you need to be legal!

    You can go get your truck out of state without operating authority if you don't haul a load. You would just need IFTA and IRP (apportioned plates) or trip and fuel permits. You are a private carrier at that moment, all the rules apply (ELD, name/DOT number displayed, safety equipment, federal inspection, etc) just no authority (MC) required just a US DOT number.

    Also keep in mind, if you are not properly registered (license plates truck and trailer) when you pick up your truck you can't haul a load even with operating authority because most temporary in-transit permits are for unladen vehicles only. If you plan to haul a load back from where you are picking up the truck make sure you have permits that allow a load or have your plates before you get the truck.
     
  4. Carhauler363

    Carhauler363 Bobtail Member

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    Thank you for the help. I do truly just run local and have forever but the company I am currently leased to has us all on apportioned plates that they say need to be given back when we break the lease. This is ok I will register my current truck and sell it with a new plate. When I buy my new truck if I must have an MC number I might as well reg it apportioned then. I haul new cars which ship from out of state and out of the country which is why I believed I needed to attach my old MC to my new DOT number. My insurance lady for sure has me all mixed up, she said it would be significantly less for insurance without the MC numberer because she has a company the writes policies for in state but not federal that is a lot cheaper. The main issue for insurance is since I have been leased on for so long on their DOT I get into the system as a new venture, which makes for terrible rates even though I have had 0 claims for cargo or accidents etc..

    What a mess, and thanks again for your help.
     
  5. brian991219

    brian991219 Road Train Member

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    Happy to help. Yes, you definitely will need an MC number hauling new cars from out of state. Your insurance agent means well but she is giving bad advice.

    FYI, it will take about 25 days to fully process an application for interstate operating authority, there is a 21 day waiting period from time the application is submitted. Make sure your timeline accounts for that delay.

    Best wishes for success. It sucks what California is doing to independents out there.
     
  6. Diesel Dave

    Diesel Dave Last Few of the OUTLAWS

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    Perhaps you need advice from a professional insurance agent and a NEW insurance agent. Let me know if you do. My agent is the best in the industry.

    Edit; she knows all about AB 5 and Commiefornia
     
  7. Carhauler363

    Carhauler363 Bobtail Member

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    Thanks, it is unfortunate what happens when you let liberals run your state.
     
    Bean Jr. Thanks this.
  8. Carhauler363

    Carhauler363 Bobtail Member

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    If you can pass me on her info that would be great, thank you for the help.
     
  9. abyliks

    abyliks Road Train Member

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    You don’t need an MC unless you are hauling someone else’s freight across state lines, and you can go across lines to pick up/repair a truck unladen without irp plates, deadhead the truck home and register it locally if that’s all you are doing
     
    Bean Jr., LoneRanger and Concorde Thank this.
  10. Diesel Dave

    Diesel Dave Last Few of the OUTLAWS

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    544ADE88-46CF-4382-A67F-47EF4C6AD209.jpeg
     
  11. Carhauler363

    Carhauler363 Bobtail Member

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    I haul new cars from the rail yard to the dealer, they are not my cars. I have heard yes and no to MC since it is intrastate.
     
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