Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

1. I am starting my trucking business what coverages do I need?
2. What do I need to get my MC number active?
3. What is the difference between interstate and intrastate authority?
4. What can put my company out of business?
5. What is the difference between "short-rate" and "pro-rate" policies?

I am starting my trucking business what coverages do I need?
The following coverage's are generally the most common for Trucking operations:

$1,000,000 - Commerical Auto Liability

$1,000 - Deductible Physical Damage Coverage

$100,000 - Motor Truck Cargo

$1,000 - Deductible Non-Owned Trailer Coverage

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What do I need to get my MC number active?
Your MC number is required if you are operating as a for-hire carrier and are transporting federally regulated commodities across state lines or into ports or rail yards. Your MC number will become active after a 15 business day waiting period if you purchase a BOC-3 and insurance that does filings.

Your insurance should match or exceed limits shown on your MC number. Most will accept a $750,000 liability limit with some requiring a$1,000,000 limit or a $300,000 limit. One of our experienced agents can help you understand your needs.

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What is the difference between interstate and intrastate authority?
Intrastate - You travel only within a single state.

Interstate - You cross state lines for commercial purposes. 

If you travel interstate, then you are required to have an authority with an insurance filing.

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What can put my company out of business?

Insurance companies use thousands of rating factors to determine your risk level and the premium to charge. Based on your risk profile, your premium will increase or decrease. As trucks become more technologically advanced, the information insurance companies use to determine your risk profile has changed. Gone are the days of paper logs. Today, insurance companies collect date from electronic logs and dash cameras in their rating factors. 

Here are the top 10 loss control items that may put your company out of business:

1. Hiring a driver with a D.U.I.
2. Hiring a driver with a history of substance abuse problems.
3. Hiring a driver with multiple traffic accidents and violations.
4. Hiring a driver with little DOT knowledge.
5. Hours of service violations such as false report of record of duty status and operating more than 11 hours.
6. Vehicle maintenance violations such as flat tire and inoperable break lights and turn signals.
7. Failure to provide ongoing training for your drivers and your safety director.
8. Failure to implement a safety program and to aggressively manage IFTA, driver qualification files, vehicle maintenance files, and driver logs.
9. Failure to regular drug tests and check MVRs annually.
10. Failure to talk to your insurance agent on ways to minimize risk and improve safety. 

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What is the difference between "short-rate" and "pro-rate" policies?
Short-Rate is when an insurance company charges you for the actual days insured PLUS a percentage for the early cancellation.

Pro-Rate is when an insurance company only charges you for the actual days insured.



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