Own authority

I was going to lease onto a company and run under their authority but recently stumbled upon another company but have to have own authority. I know some states will require more/less than others. So just dotting my i and crossing my t

 

one thing some guys forgot to mention, in some states you will have to have an application on file, yes you have to hire yourself, also the drug consortium along with a few other things will get your authority stripped immediately when you get the mandatory audit, my drug consortium runs me $95 for entire year and the hiring app can be printed off the FMCSA website

 

also found that Berkshire and Progressive are only insurance companies willing to touch new ventures right now, my first insurance payment was $3100, and just got my authority in November MVR clean also i must add

 

I believe, that the only time that you do not have to hire yourself is when you are an unincorporated sole proprietor. Even then I would still do it and put it in your files so if in an audit and it is ever asked for you have it. I don't think it has anything to do with the state you live in, I think it is based on what the IRS sees you as, I could be mistaken.
Also, it requires more than just an application for employment on file. You have to do the whole process,

Driving record from all states that a license was held in the past 3 years

Inquiry of previous employers from the past (7 or 10 years? can't remember), if the employer was not DOT regulated. A paper certifying that the employee has no previous experience under a DOT regulated employer.

Pre-employment drug screen ( a must have!!!)

There is more, just cannot think at the moment.

If you go the Progressive route, be sure to tell them you will be driving more than 500 miles from your company location (if you are). They have one policy that is only 500 air mile radius... For a reference, I paid $10,567 lump sum for 1 year. Which I got a $1400 discount for paying in full. Soooo ...they pretty much wanted a grand a month.

 

also something you may want to know is OOIDA would probably have the cheapest insurance but then youd find many places doesnt accept there insurance, probably why its cheaper, another trick to the down payment aspect is for initial payment set your liability at $750,000 and after its attached call and say you neeed to up it to the $1,000,000 you will most likely need for most shippers, sometimes the insurance comp will ask for a little payment most of the time they wont

 

Side Note: OOIDA will not cover rookies, I think it was 5 years exp. may have been 3 years. I'm sure someone that knows for sure can correct me on that.