Meeting Arkansas Trucking Insurance Requirements just became easier as a brand new insurance provider steps in to compete for Motor Carriers
Razorbacks hauling freight for hire across state lines or Interstate, must follow FMCSA’s required higher limits of Commercial Auto Liability Insurance.
FMCSA, is the Federal Motor Carrier Safety Administration.
They run the DOT, Department of Transportation.
Trucks only hauling freight for hire within state lines, or IntraState can follow the lower limits of insurance required by ARDOT.
ARDOT is the Arkansas Department of Transportation.
Required Proof of Insurance for Motor Carriers operating Interstate:
Here’s how Trucker’s Proof of Insurance works:
1. When you sign up as a Motor Carrier, FMCSA gives you a DOT number right away.
2. Your insurance company sends proof of your coverage to FMCSA, attaching it to your DOT number.
3. This proof of your insurance coverage is your BMC-91X Filing.
4. MCS-90 is the endorsement to your insurance policy assuring FMCSA that you have the correct coverage in place.*
5. At the same time, your insurance company sends proof to your state’s Department of Transportation.
6. It might take about a month to get your MC number for Motor Carrier Operating Authority from FMCSA.
*That’s why you can’t cancel this type of insurance in real time. The insurance company needs 35 days to tell FMCSA that the proof of insurance is gone so that FMCSA can remove the proof of your insurance from their website, SaferSys.
When you have a professional Truck Insurance Broker, she’ll guide you through this and more on the phone so don’t worry.
But hold off on that DOT Registration until you have your ducks in a row!
Before committing to a new DOT, make sure the insurance ramifications align with your budget.
Reach out to us first to see what your trucking insurance cost will be once you’re up and running.
It’s smart to understand insurance expenses before embarking on any new venture, especially in trucking.
Save yourself from going in circles.
We’ll provide a straightforward premium estimate before things get too complex.
You might even discover better opportunities hauling for someone else until your DOT is sorted out.
We’re here to help you with the pros and cons of a new Motor Carrier authority.
Take a look at Simple Steps to Your Motor Carrier Authority from CIS—it’s a handy little cheat sheet we put together just for you!
Why does Trucking Insurance seem so high for new Motor Carriers in Arkansas?
Arkansas’s insurance rates for new trucking ventures are pretty standard overall, but it’s still expensive.
You’re better off knowing that up front, which is why we shop around for you!
The big issue is that commercial trucking insurance has had losses for years due to accidents and litigation.
This has led to fewer insurance companies entering the commercial trucking market, which in turn raises rates due to limited competition.
But guess what? Exciting news for new startup Motor Carriers in Arkansas:
Does Arkansas have a New Insurance Company Option for Truckers?
Yes, GEICO is the new trucking insurance options everyone is talking about nationwide.
They’ve got an awesome new program for Arkansas truckers with premiums that are lower than the competition.
You can read more at Arkansas GEICO Commercial Truck Insurance or get a quick quote right away:
Insurance limits for Interstate Arkansas Trucking for Hire
Arkansas follows FMCSA guidelines for Interstate Trucking for Hire insurance :
– $300,000 CSL Commercial Auto Liability for Cargo Van and Sprinter Insurance
– $750,000 CSL Commercial Auto Liability for larger units like Hot Shot Truckers Insurance
CSL stands for Combined Single Limit
In the real world, Interstate Brokers and customers usually need at least $1,000,000 CSL regardless of vehicle type.
It’s okay to start with the minimum limits, but be sure to factor in the cost of the $1,000,000 Commercial Auto Liability so you aren’t limiting your options to obtain freight down the road.
Want a quick cheat sheet on what Commercial Auto Liability Insurance IS?
You can remember Liability as “you’re liable to get sued.”:
It protects you from potential lawsuit if you’re driving along and hit someone or something.
Commercial Auto Liability insurance has 2 parts:
Bodily Injury kicks in for someone you’ve hurt or killed.
It covers everything from medical bills to funerals.
Property Damge kicks in for that other vehicle you’ve hit.
It covers everything from other trucks, cars, bridges, buildings and solid objects.
Bodily Injury and Property Damage usually come as a “CSL” or Combined Single Limits package.
So if you hit someone or something, you are insured up to the limit of insurance you buy on your policy.
Is Truckers General Liability the same as Truckers Commercial Auto Liability?
No, they are two different types of insurance coverage.
Commercial Auto Liability has you covered when you’re behind the wheel—it’s the insurance you’re legally required to have to hit the road.
General Liability covers you things that can happen when you’re NOT driving your truck.
The most common claim?
Delivery mishaps during loading and unloading.
Here’s some other examples of where General Liability for Truckers comes into play.
A lot more of your customers and brokers are requiring this additional Liability coverage.
Thankfully it’s still quite affordable.
It can be quoted up front and added anytime you want to add it to your policy.
Arkansas Trucking Insurance extras to think about:
If the driver who hits you lacks insurance or has insufficient coverage, Uninsured or Underinsured (UM/UIM) Protection has your back. It covers injuries for you and your passengers, including out-of-pocket expenses.
Medical Payments (MedPay) Protection kicks in for medical and funeral costs if you or your passengers get injured in a crash.
Both options are well priced, and a good transportation insurance expert will include them in your proposal.
She’ll also help you in figuring out the right amount and type of Motor Truck Cargo coverage you require.
You’ll also want Physical Damage Coverage:
Physical Damage (Phys Dam) covers your own truck.
Collision coverage kicks in if your truck gets damaged or totalled by running into something, flips, or rolls over.
Comprehensive (Comp) coverage will repair or replace your truck from things like theft, falling trees, wind, hail, or animal hits.
Physical Damage insurance will be based on either the Actual Cash Value (ACV) of your truck or the Stated Amount of your vehicle.
Remember to include any permanently attached equipment that adds value to your truck like parts, mounted gear, HVAC, loading equipment and detailing.
Want to learn a little more before diving in to your own Motor Carrier Authority?
Swing by the CIS Commercial Truck Insurance Blog.
…or simply call us at CIS 330-864-1511 to chat.
We’re here to help you thrive in your new cross country adventure!
