For a Motor Carrier to legally move goods across state lines it’s key to meet FMCSA’s minimum Commercial Auto Liability Insurance requirements and those of ADOT:
- FMCSA is the Federal Motor Carrier Safety Administration.
- The FMCSA oversees Interstate regulations through the Department of Transportation – DOT.
- All Commercial vehicles hauling goods for hire across state lines are required to have a DOT Motor Carrier Authority.
- Commercial trucks operating soley within Arizona are regulated by ADOT.
- ADOT is the Arizona Department of Transportation.
Required Proof of Insurance for Motor Carriers in Arizona:
Here’s a breakdown of how Trucker’s Proof of Insurance works:
1. When you register to become a Motor Carrier, FMCSA will issue you a DOT number.
2. Your insurance company sends proof of the coverage in your policy to FMCSA, referencing your DOT number.
4. This proof of insurance is called your BMC-91X Filing.
3. The MCS-90 is just the endorsement to your insurance policy promising FMCSA that you are in compliance with the law.*
4. Simultaneously, your insurance company sends proof to your state Department of Transportation.
5. It can take up to a month to receive your MC number with Motor Carrier Operating Authority from FMCSA.
*This is why you can’t cancel this type of insurance policy immediately. The insurance company needs 35 days to contact FMCSA that proof of insurance no longer exists.
When you have a professional Truck Insurance Broker she’ll walk you through this and more over the phone.
But don’t dive into that DOT Registration just yet!
It doesn’t make sense to invest in a new DOT without knowing if the insurance fits your budget.
Give us a call first to get an idea of your trucking insurance costs.
It’s smart to have a good grasp of insurance expenses before diving into any new venture, much less trucking.
You definitely don’t want to waste time running around in circles.
We’ll give you an honest estimate of your premium before things get too complicated.
You might even find there are better opportunities hauling for someone else until you have your DOT in place.
Why is Trucking Insurance so Expensive for New Startup Motor Carriers in Arizona?
Arizona’s insurance rates for new trucking ventures are average for the most part.
The major problem is that commercial trucking insurance has been facing major losses for years.
This led to a shortage of insurance companies entering the commercial trucking market.
But this month there’s finally some great news emerging for Arizona Owner Operators:
A new Arizona Trucking Insurance Company is here
The trucking for hire insurance scene has a fresh player for small Motor Carriers.
This major financial player is rolling out a new insurance option for both seasoned pros and newcomers starting out.
The nationwide launch is spot on, with Arizona, Colorado, Texas, Florida, South Carolina, Ohio, Indiana, and Illinois leading the way.
The new program just kicked off via select Independent Agents, and they’re offering VERY attractive premiums across the board.
CIS is excited to team up with them!
Reach out to us today, and we’ll give you all the details.
CIS: 330-864-1511
15 Minutes Can Save You BIG $$$ on your Trucking Insurance!
Trucking Insurance limits for new ventures in Arizona
FMCSA and Arizona ADOT need the same minimum insurance limits for hauling freight across state lines:
– $300,000 CSL Commercial Auto Liability for Cargo Vans and Sprinter Insurance
– $750,000 CSL Commercial Auto Liability for larger units including Hot Shot Truckers Insurance
CSL – Combined Single Limit
In reality, brokers and customers often require at least $1,000,000 CSL.
Starting with the minimum limits is fine, but it’s wise to factor in the cost of the $1,000,000 Commercial Auto Liability limit in the long run.
What IS Commercial Auto Liability Insurance for Truckers?
Commercial Auto Liability covers you for Bodily Injury and Property Damage if you’re at fault for causing harm to others.
- Bodily Injury Liability steps in when there’s an accident causing injuries or worse. It helps with medical bills, rehab, long-term care, funerals, lost income, and pain and suffering.
- Property Damage Liability handles the costs for damaging someone else’s stuff, like fixing or replacing their vehicles, buildings, or even pets.
In commercial trucking insurance, Bodily Injury and Property Damage are usually “CSL” or Combined Single Limits.
Your insurance policy covers you up to the amount of Commercial Auto Liability you purchase.
Arizona Trucking Insurance extras to consider:
Uninsured or Underinsured (UM/UIM) Protection acts as a safety net for you and your passengers in case the driver who hits you doesn’t have liability insurance or inadequate insurance.
It covers your injuries and your passenger’s injuries including out of pocket expenses you may incur.
Medical Payments (MedPay) Protection is coverage for medical and funeral expenses if you or your passengers are injured in a crash.
Both are very affordable and any professional truck insurance broker should include them in your proposal.
She will also help you with the amount and type of Motor Truck Cargo coverage you’ll need.
Physical Damage Coverage for Arizona Trucking Insurance Policies:
With Physical Damage Insurance, you get both Collision and Comprehensive (Comp) coverage for your truck.
Collision coverage steps in if your truck is damaged or totalled in an accident.
It also helps with repair or replacement costs if your vehicle collides with something, flips, or rolls over.
Comprehensive coverage comes to the rescue if your truck faces damage from things like theft, falling trees, wind, hail, or unexpected animal encounters.
Physical Damage insurance usually depends on either the Actual Cash Value (ACV) of your truck or the Stated Amount of your vehicle.
For a solid Stated Amount valuation, make sure to include anything permanently attached to your unit like aftermarket parts, mounted gear, and lasting upgrades. And don’t forget those accessories that are essential parts or help secure the load.
Think about these examples and share your thoughts with your truck insurance broker. She’ll help you decide how much Permanently Attached Equipment coverage to include on your policy:
– Cool custom paint, decals, and signage
– Electronics securely bolted or mounted onto your truck
– Handy coupling devices like 5th wheel receivers
– Useful vacuuming equipment and accessories
– Practical mounted toolboxes, shelving, and ladder racks
– Essential tarps, chains, and binders
Want more details before you jump into setting up your Motor Carrier Authority?
Head over to the CIS Commercial Truck Insurance Blog for Owner Operators or just give us a call at CIS 330-864-1511 to chat.
We want to help you succeed in your new venture!
