If you have not started the process of getting your authority yet, there are a few steps in order to getting your trucking authority. Most companies will help you start your authority. We specialist in the insurance portion of getting your authority. The steps below provide you a synopsis of getting your authority. Once you receive your trucking authority, we will provide you with the best rates in the industry to for truck insurance.
For getting your federal trucking authority: (will take 2 weeks to complete)
Step 1: Get your MC number: Issued by the Federal Motor Carrier Safety Administration (FMCSA), the Motor Carrier (MC) Number is what constitutes authority to cross state lines for hire as a motor carrier. All companies transporting freight for hire are required to obtain an MC Number.
Step 2: Get your USDOT number: Issued by the United States Department of Transportation (USDOT), the USDOT Number is the main tracking number for your trucking company. The USDOT number registers the number of trucks, drivers, and the safety rating of your company. A USDOT NUMBER DOES NOT CONSTITUTE AUTHORITY.
Step 3: Get your BOC-3 Process Agents: Process agents are people designated in each state that can accept legal documents on your behalf and then return them to you in your home state. BOC 3 Process agents are a requirement to obtaining federal authority.
Step 4: Get your truck insurance: A carrier must obtain liability and cargo insurance and is recommended that you obtain a $1,000,000-liability policy and a $100,000 Cargo policy. You will need to obtain insurance within the first two weeks after the MC number is filed to avoid any delays in your authority processing. If you fail to get insurance on file within the first 60 days then your authority application will be dismissed. If you do not obtain insurance within that year’s time, you will have to start the authority process over again and repay all applicable fees.
For getting your state trucking authority:
Step 1: Get your UCRA: The Unified Carrier Registration Agreement states that all motor carriers, regulated, exempt, private, interstate brokers, Freight Forwarders and leasing companies are subject to fees under the UCRA. Fees are calculated per company based on the number of commercial motor vehicles it operates. Commercial motor vehicles include the number of trucks and power units operated by the company).
Step 2: Get your IFTA: The International Fuel Tax Agreement (IFTA) is for trucks with a Gross Vehicle Weight over 26,000 lbs operating interstate for-hire or interstate private. All 48 states and the Provinces of Canada participate in the IFTA program. Once registered there will be quarterly tax filings due. You are required to keep track of the mileage traveled in each state and all of your fuel purchases. Some states charge a small one time registration fee to get started but usually it is free.
Step 3: Get your IRP: The International Registration Plan (IRP) is for trucks with a Gross Vehicle Weight over 26,000 lbs operating interstate for-hire or interstate private. All 48 states and the Provinces of Canada participate in the IRP Program. The IRP covers the apportioned tags for the truck. There is a yearly fee to register and operate your truck in each state or province. The cost is dependent on the miles you run in each state or province for the year. The average cost ranges from $1000 to $3000.
Step 4: Get your permits:
NY, NM, KY, & OR – These states require an extra permit to operate within their borders. Once registered there will be tax filings due based on the miles traveled in each of these states.
NY charges a $15 per truck registration fee and quarterly reporting of mileage.
NM charges a $7 per truck registration fee and quarterly reporting of mileage.
KY does not charge a registration fee, but does require quarterly reporting of mileage.
OR charges a $2000 cash deposit or security bond to register. The cash or bond will be returned if the carrier stays compliant for the initial 24 months. After registering the carrier is required to file monthly mileage reports.
Commercial truck insurance rates are going up. Most trucking companies are seeing their rates go up 20-30%. Commercial truck insurance rates with Thomas Wilson Group, LLC. are always competitive. We want to make sure your insurance is within your budget and you can have the peace of mind of having you and your truck properly covered.