Trying to Get MC# and Authority activated

Before I sign a lease for 5 trucks and then sign a contract to hire 5 drivers am I actually expected to get those and THEN insurance and then HOPE my MC# and US DOT gets activated? There has got to be another way. What if I sign for all of that and something goes South on the US DOT#? Ill be stuck with a 5yr lease and 5 drivers I cant do anything with?

 

You're going to get a lot of hate for this post.

 

This is going to be good…

 

Probably but it just doesn't make sense to me.

 

Your insurance has to be on file for 14 days before they approve your authority. Also cargo insurance.

 

Don't be such a Debbie Downer.

And pass me some popcorn. Please.

 

You do not need to have any trucks or drivers before applying for operating authority, however you do need your insurance in place before your authority will be granted. This means, you apply for your US DOT and MC numbers, file a BOC-3 (process agent form) then about day 15 after applying you have your insurance company submit the electronic proof of insurance (MCS-90) to FMCSA and then sometime after day 21 from the filing date, usually about day 25-28, they will grant your authority unless there was something wrong with your application. Until your insurance is paid for and the underwriter files the proof of coverage the FMCSA will just leave your application in the pending status and after 90 days they will reject it if insurance and BOC-3 is not filed.

In 14 years of helping folks file for authority I have only seen a handful of rejected applications for authority and those were all for good cause. The most common was someone trying to hide the fact they previously owned or managed a motor carrier that was under suspension or revocation, were not honest about their familial relations to ownership of other motor carriers or their lawful status to own a US based motor carrier. Outside of that the FMCSA will grant operating authority to almost any entity that requests it.

So you should not have a problem, but to answer your question NO, there is no legal way to avoid waiting for authority to be granted before obtaining insurance, and since most insurance companies want the exact VIN of the equipment they are quoting you will likely need a lease or ownership agreement in place for your trucks when binding your insurance.

Good luck getting an insurance company in this climate to insure a brand new venture with 5 trucks and 5 hired drivers right from the start. It is possible but very expensive and difficult to do.

 

I am all for someone starting a new business but I don’t understand why anyone would be trying to get into a 5 year deal with all hired drivers and 5 units. Do you have any experience in this business or have you ever tried it before??
Just seems like an awfully big jump. I hope you have done your research and have everything figured out or you’re going to be upside down real quick.
You’re going to have to do things like you say but I would recommend starting with one truck. 5 trucks with drivers and insurance is a lot to pay for if they aren’t moving.

 

Ok.... I'll ask the million dollar question. Do you have any trucking experience? My guess is no....