Risky Business

New Trucker needs help with Motor Carrier Insurance
New Venture Motor Carrier needs help with insurance

Save money on your New Venture Motor Carrier Insurance with these 9 Questions

By Shelly Benisch, CIC, TRS & Christina Cummings, TRS
Posted Jan 26th 2023 1:50PM

Are you an Owner Operator venturing out to become a new Motor Carrier with questions on your truck insurance?

Most Independent Contractor Owner Operators start by driving a truck “leased on” to a large Motor Carrier. But over time, you may choose to get your own DOT and establish your own Motor Carrier authority.

Truck insurance for a “leased on” Owner Operator is very different than truck insurance for a Motor Carrier. Most of the insurance responsibility shifts from the company you’ve been “leased on” to…to YOU.

What type of Truck Insurance does a new venture Motor Carrier need?

The type of truck insurance you’ll need will change from “Non-Trucking Liability” to “Primary Liability” because FMCSA will require your new DOT entity to carry minimum limits of insurance based on your unit type. You will also be responsible for insuring the Cargo you are hauling.

Some of the FMCSA terms and coverage details in establishing new venture Motor Carrier insurance can be confusing, but don’t worry. Your CIS truck insurance pros will walk you through the process to get the right commercial truck insurance at the best price for your type of truck or sprinter.

New venture truck insurance options are limited

Hard to believe, I know…but truck insurance companies have not been profitable for years. So there are a limited number of insurance providers willing to insure any transportation companies, and a new trucking entity will undergo more extensive underwriting than a known risk.

This simply means that when your new DOT Authority is granted by FMCSA, a prior “Owner Operator” now becomes a “New Venture Motor Carrier” in the eyes of insurance underwriters.

Insurance companies WANT to write solid new business with stable financials, good driving history and a plan for safety.

Just ask yourself, “Are you somebody you would want to insure?”

Underwriting will ask several dozen questions about your new venture Motor Carrier insurance, but here are 9 important ones to get you thinking. Then call your CIS truck insurance pro. We’re your agent advocate, and we want to help you succeed.

Answer these 9 questions correctly and save on your Motor Carrier Insurance:

1.  How long have you had commercial driving experience?
2.  What companies did you drive for…and how long?
3.  What commodities have you hauled in the past?
4.  What routes did you regularly take?
5.  How will this new operation be financed?
* 6.  What type of growth do you expect in the first 12 months?
7.  What will be your hiring practices?
8.  Do you have a vehicle maintenance program in place?
9,  What is your anticipated Gross Receipts and Mileage?

*CIS Quick Truck Insurance Tip:

Underwriters do NOT want to see a lot of growth the first year.

Read more CIS Quick Truck Insurance Tips

[Related Story - What's the Best State for Truck Insurance]

Watch our trucking insurance videos to learn more about Motor Carrier Truck Insurance and the difference between Non-Trucking Liability and Primary Liability.

…and if you’re already a Motor Carrier and ready to grow read about small fleet insurance  first before you make the plunge!

Shelly Benisch, CIC, TRS & Christina Cummings, TRS

Commercial Insurance Solutions Inc. (CIS)

More CIS Quick Truck Insurance Tips

CIS Logo