Owner Operators - Owner Operator REXpert

Questions on Brokers
I am a retired Interstate Commerce Commission (ICC) Investigator with more than 45 years in transportation. For the past 11 years I have been a transportation consultant assisting those who would like to get their own motor carrier or broker authority. Send me your questions and I will use my expertise and knowledge to answer them.
Over the past many months I have enjoyed answering your questions. There have been many questions regarding leasing to a trucking company and who is responsible for what costs and paperwork. There have also been questions regarding getting your own trucking and/or broker authority. Continue sending me your questions regarding any aspect of the trucking/broker industry.
| Q |
I was an owner-operator and about six months ago I decided to get my own authority. After several months I changed insurance companies because of better rates. About one month after that I got a letter from the FMCSA saying my authority had been revoked. Can you advise why they would revoke my authority? |
| A |
Your authority was revoked because your new insurance company did not file your new insurance with the FMCSA within 30 days. You can still operate during the initial 30-day period. This is the time limit for your new insurance company to make the new filings. If the new insurance is not filed within the 30 days, you will have to file a reinstatement and pay the $80 fee to reinstate your authority. Any time you change insurance companies, you will always need to inform the new insurance agent and company to make the new filings within the 30 days. |
| Q |
I am thinking of applying for my own trucking authority. My question is: How many trucks must I have to get my own authority? |
| A |
The answer is zero. There are no requirements that you must own any trucks to get your own authority. The insurance company will require you to have some kind of vehicle to apply the insurance to, so just give them the information on the vehicle that you currently drive. |
| Q |
Who needs an MC number? |
| A |
Anyone that will transport in interstate commerce for-hire. Interstate commerce is normally the transportation from one state to another. And for-hire means that you will receive compensation for the transportation. |
| Q |
Can I begin for-hire transportation today without having an MC number? |
| A |
Yes. But you are limited to exempt commodities. And, you will also have to have a USDOT number which can be obtained free and received in one day. Exempt commodities are products such as fresh fruits and vegetables. The complete list can be found at: www.fmcsa.dot.gov/pdfs/adminrule.pdf |
| Q |
Who cannot get their own trucking or broker authority? |
| A |
Anyone that has been convicted after September 1, 1989 of any Federal or state offense involving the distribution or possession of a controlled substance, and anyone that is domiciled in Mexico, or owned or controlled by persons of that country. If you have been convicted of a drug charge after September 1, 1989 and you want to get your own authority, get incorporated. The incorporation has never been convicted of anything. |
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