Starting Your Trucking Business: A Guide to Getting Insurance for Your New Authority

Starting a new trucking business can be exciting, but it comes with significant responsibilities, including obtaining adequate insurance coverage. Insurance is essential for protecting your business, assets, and employees in the event of an accident or injury. In this blog post, we will discuss the steps you need to take to get trucking insurance as a new authority, including how to obtain an FMCSA operating authority, meet licensing and insurance requirements, and shop for the best coverage and rates.

Steps You Need to Take Before Getting Insurance as a New Trucking Authority

If you are a new trucking authority, getting insurance coverage is a crucial step in ensuring the success and longevity of your business. Trucking insurance not only protects your business assets but also helps you comply with regulations set by the Federal Motor Carrier Safety Administration (FMCSA). Let's discuss the steps you need to take to get truck insurance as a new authority.

Step 1: Obtain an FMCSA Operating Authority

Before you can begin shopping for insurance, you must first obtain an FMCSA operating authority. This means registering with the FMCSA and obtaining a Motor Carrier (MC) number. You will also need to select the type of operating authority that is appropriate for your business. This may include a common carrier, contract carrier, or broker authority.

Step 2: Get Your FMCSA Licensing and Insurance Requirements in Order

After obtaining your operating authority, you will need to ensure that you have met all of the FMCSA licensing and insurance requirements. These requirements may vary depending on the type of authority you have obtained, but typically include minimum levels of liability insurance, cargo insurance, and surety bonds. Learn more about the FMCSA truck insurance requirements here.

Step 3: Shop Around for Trucking Authority Insurance

Once you have your licensing and insurance requirements in order, you can begin shopping for insurance coverage. It is important to do research and shop around for the best coverage and rates. That is exactly what we will do on your behalf! Let CarrierHQ help you find the best rates and policies tailored to your trucking authority. Our agents specialize in trucking insurance and have experience working with new authorities.

Step 4: Gather Necessary Information

When applying for insurance, you will need to provide detailed information about your business and operations. This may include information such as your driving history, the types of goods you will be hauling, and the routes you will be taking. Make sure to have all of the necessary information gathered and organized to make the application process as smooth as possible.

Step 5: Evaluate Coverage Options

Once you have received insurance quotes, it is important to carefully evaluate your coverage options. Look for coverage that meets all of your needs and provides adequate protection for your business. Consider factors such as deductibles, limits of liability, and additional coverage options such as physical damage and general liability coverage. Read more here about different types of coverage options here.

Overall, obtaining truck insurance as a new authority can seem like a daunting task, but by following these steps, you can ensure that you are properly protected and compliant with FMCSA regulations. Not only that, but CarrierHQ can walk you through the process! Remember gather necessary information and carefully evaluate your coverage options to find the best insurance solution for your business.

Types of Insurance Coverage for New Authorities

One of the most significant expenses that trucking business owners face is insurance. Adequate insurance coverage is essential for protecting your business, your assets, and your employees in the event of an accident or injury. Let's discuss the types of insurance coverage new authority owners need and how to find the best coverage and rates for your business.

The most common types of insurance coverage for trucking businesses include primary liability insurance, physical damage insurance, cargo insurance, and bobtail insurance.

Primary Liability Insurance

Primary liability insurance covers damage to other people's property or bodily injury caused by you or your driver while operating the truck. This coverage is mandatory and required by law for all motor carriers. The cost of primary liability insurance can range from $3,000 to $5,000 per year, depending on your driving record, the type of cargo you're hauling, and the value of your equipment.

Physical Damage Insurance

Physical damage insurance covers damage to your own truck in the event of an accident, theft, or vandalism. This coverage is optional but highly recommended for all new authority owners. The cost of physical damage insurance can range from $1,500 to $3,000 per year, depending on the age and value of your equipment.

Cargo Insurance

Cargo insurance protects against damage or theft of the cargo you're hauling. This coverage is mandatory for motor carriers and can vary in cost depending on the type of cargo and coverage limits. The cost of cargo insurance can range from $1,500 to $3,000 per year.

Bobtail Insurance

Bobtail insurance covers you when you're driving your truck without a trailer attached. This coverage is optional but may be required by some motor carriers. The cost of bobtail insurance can range from $1,000 to $2,000 per year, depending on your driving record and the type of truck you're driving.

Finding the Best Coverage and Rates for Your Business

Aside from the types of coverage you need, other factors that can affect the cost of insurance for your new authority in trucking include the type of trucking you do, your driving record, the value of your equipment, the amount of coverage you need, and your location. To find the best coverage and rates for your business, it's important to do your research and work with a knowledgeable insurance agent.

When shopping for insurance, consider getting quotes from multiple insurance companies. This can help you compare coverage options and rates to find the best fit for your business. Working with a knowledgeable insurance agent who understands the trucking industry can also be helpful in navigating the complex world of trucking insurance and finding the best options for your specific needs.

Obtaining your own operating authority for your trucking business is an exciting venture, but it comes with significant responsibilities, including obtaining adequate insurance coverage. The types of insurance coverage you need as a new authority owner include primary liability insurance, physical damage insurance, cargo insurance, and bobtail insurance. To find the best coverage and rates for your business, it's important to shop around, compare quotes, and work with a knowledgeable insurance agent who can help you navigate the complex world of trucking insurance. With adequate insurance coverage, you can protect your business, your assets, and your employees and operate your trucking business with peace of mind.

Insurance for New Authorities with CarrierHQ

Make sure you have an agent who knows transportation.

Give CarrierHQ a call and get a quote today! We can get you a free same-day quote!

The trucking industry continues to evolve, and so do the costs associated with running a successful trucking business. Insurance is one of the most significant expenses that trucking business owners face, and it's essential for protecting their business, assets, and employees in the event of an accident or injury. Let's discuss the factors that determine the cost of insurance for your own authority in trucking.

Types of Coverage and Their Costs

The cost of insurance for your own authority in trucking can vary depending on the types of coverage you need. The most common types of insurance coverage for trucking businesses include primary liability insurance, physical damage insurance, cargo insurance, and bobtail insurance.

Primary liability insurance covers damage to other people's property or bodily injury caused by you or your driver while operating the truck. The cost can range from $3,000 to $5,000 per year.

Physical damage insurance covers damage to your own truck in the event of an accident, theft, or vandalism, and can cost between $1,500 to $3,000 per year.

Cargo insurance protects against damage or theft of the cargo you're hauling and can cost between $1,500 to $3,000 per year, depending on the type of cargo and coverage limits.

Bobtail insurance, which covers you when you're driving your truck without a trailer attached, is optional but may be required by some motor carriers. The cost of bobtail insurance can range from $1,000 to $2,000 per year.

Factors That Affect Insurance Costs

Aside from the types of coverage you need, other factors that can affect the cost of insurance for your own authority in trucking include the type of trucking you do, your driving record, the value of your equipment, the amount of coverage you need, and your location. For example, if you're hauling hazardous materials or driving long distances, you may need to pay more for insurance. If you have a clean driving record with no accidents or violations, you may be able to get lower insurance rates. The value of your trucks and trailers can also affect your insurance premiums, with newer and more expensive equipment resulting in higher premiums.

Location

Location is another factor that can impact your insurance costs. Higher accident or crime rates in your area may lead to higher premiums. As a general rule, owner-operators can be estimated to pay between 15,000 to $35,000 per year for insurance. However, it's important to shop around and compare quotes from multiple insurance companies to find the best coverage and rates for your business.

As a trucking business owner with your own authority, it's important to understand the costs associated with running your business, including insurance costs. The cost of insurance for your own authority in trucking can vary depending on the types of coverage you need, your driving record, the value of your equipment, the amount of coverage you need, and your location. To find the best coverage and rates, it's important to do your research and work with a knowledgeable insurance agent. With adequate insurance coverage, you can protect your business, your assets, and your employees and operate your trucking business with peace of mind.

Insurance with CarrierHQ

Make sure you have an agent who knows transportation. Give CarrierHQ a call and get a quote today!