So you want to "own " your own company

Don't go for authority (or buy or lease a truck) until you have a letter of intent from a company that will provide the DOT minimum insurance you need.

 

Yes, it is possible.

 

Hi everybody,

is it possible to get your own authority without a class A license?

And hire drivers.. To drive your truck?

how will this affect insurance etc?

Thanks everybody..

 

Why would you need a CDL to get authority? From what I see the answer is no-you don't need a CDL. Neither of the crackerheads who ran Transliner Carriers had a CDL but had their own authority. Also, I believe insurance costs are dictated by how many trucks you intend to run OTR and also by the regulations set down by the insurance companies themselves. You know, all the ads that state how much experience you must have, and also how fast they will let the trucks run, past accident history etc
Most companies have to obide by the standards prescribed by their insurers or face higher fees.

 

At the outset, insurance is determined by experience. For example, one can pass the test and get a CDL and immediately buy a truck but without driving experience there is no insurance company that will underwrite the DOT required insurance for authority. One can not have a CDL and hire drivers that do and then it might be possible. Insurance is critical. Can't get authority without it. The thing is to first find an insurance company that will underwrite for a new company with, one hopes, experienced drivers, then proceed with getting authority.

 

that's what I do ... I put driver's ( who I gonna hire) info on credit application to get insurance

 

Authority means nothing without insurance. Make sure you line up cargo and liability or there is no point as there will be no operation.

 

Few of my friends opened their own Corp. and got insurances with no problem. They have their CDL A. In my case I don't have CDL but I have experienced ( 10 years) driver . I, agree insurance can be little high but trehe no possibility of not getting it.

 

Except that there is a chance of not getting it. Or not getting it at a rate that makes any business sense. (Seen it happen more than once.) That's why I stress to get insurance lined up first, or the authority is useless.

 

You don't need a CDL to get your authority. You will need insurance. You can't get insurance without a CDL. If you don't have a CDL and want to get your authority then you will need to find a driver that you can hire to drive your truck who does have a CDL. There are a number of factors that determine insurance rates. There are some who have posted on this and other trucking forums that have managed to get their CDL, authority and insurance with little or no actual experience. Most start with Progressive until they have some experience. Premiums are greatly dependent on the drivers MVR and how long he has had a CDL and driven a truck. Premiums are also determined by credit history, safety record and other factors. Starting out you won't have a safety score, but your driver will have a history. Starting out premiums tend to be higher than if you have a track record in the industry. Changing drivers can change your premium. Some insurance companies have minimum qualifications for drivers in order to cover them. Interstate authority costs $300 if you do it yourself. Everything can be done online.