Going Independent With Your Own Authority

The new requirements

For interstate for-hire freight, FMCSA will not activate your operating authority until your insurer files proof of primary liability coverage. The federal minimum depends on what you haul, and brokers and shippers commonly ask for more. Most customers also require motor truck cargo coverage on loads you move.

What replaces what

• Primary auto liability replaces the carrier's liability and your non-trucking policy
• Motor truck cargo becomes your responsibility
• Physical damage usually continues and may need to be moved to the new policy
• General liability may be required by shippers and facilities
• Occupational accident or workers comp remains important

Timing the switch

Apply for authority and line up quotes while you are still leased on. Bind the new policy so the filing is accepted before the lease ends, and give your current carrier notice according to the lease. On the day you leave, confirm the old carrier has removed your truck from its authority and that its placards or markings have been taken off as the lease requires.

What underwriters ask a new authority

Expect questions about your years with a CDL, your motor vehicle record, the time you have spent leased on, the commodities you plan to haul and the states you will run. Your history as a leased-on driver counts, so keep records from your carrier, such as safety reports or a letter confirming your tenure.

Frequently asked questions