Colorado Motor Carriers are required to meet minimum Commercial Auto Liability Insurance limits set by FMCSA. Those high limits are now easier to afford with a new insurance provider in town.
CDOT requires Motor Carriers to complete a FMCSA DOT Registration regardless of Intra or Interstate Commerce.
CDOT is the Colorado Department of Transportation.
FMCSA is the Federal Motor Carrier Safety Administration which oversees the U.S. Department of Transportation.
Required Proof of Insurance for Motor Carriers in Colorado:
Breakdown of how Trucker’s Proof of Insurance works:
1. After you complete your FMCSA application to register as a Motor Carrier, you are assigned a DOT number.
2. Your insurance company forwards proof of coverage to FMCSA citing your DOT number.
3. This proof is your BMC-91X Filing.
4. The MCS-90 is an endorsement to your policy assuring FMCSA compliance with the law.*
5. Additionally, your insurance provider sends proof to CDOT.
6. It may take about a month to obtain your MC number for Motor Carrier Operating Authority from FMCSA.
*Upon cancellation of your insurance policy, your provider designates a date 35 days ahead. This allows FMCSA sufficient time to record the cancellation on your Safety and Fitness Electronic Records (SAFER) System. This gives the public enough time to know that proof of insurance no longer exists.
When you work with a professional Truck Insurance Broker, she’ll guide you through all of this and more on the phone.
But take a minute before diving into a new DOT Registration!
Before you jump in, make sure the insurance fits your budget.
Reach out to us first to get a sense of your trucking insurance costs.
It’s smart to grasp these expenses before starting a new venture, particularly in trucking.
Save time by starting off well-informed.
Get a clear premium estimate before things get tricky.
You might find better chances hauling for others until your DOT is locked in.
Why is Commercial Trucking Insurance so Expensive for New Start Up Motor Carriers in Colorado?
Colorado’s insurance rates for new trucking ventures are pretty much average.
The big issue is that commercial trucking insurance has been taking a hit for years, resulting in fewer insurance companies stepping into the commercial trucking market.
But finally, this month brings some awesome news for Colorado Owner Operators:
A new Colorado Commercial Trucking Insurance Company has arrived
The trucking for hire insurance scene has a new player for small Motor Carriers.
This big financial player is introducing a fresh insurance option for both seasoned pros and newcomers getting started.
The nationwide launch is right on target, with Arizona, Colorado, Texas, Florida, South Carolina, Ohio, Indiana, and Illinois leading the way.
The new program just started through select Independent Agents, and they’re offering really attractive premiums all around.
CIS is pumped to partner with them!
Get in touch with us today, and we’ll fill you in on all the details.
CIS: 330-864-1511
15 Minutes can Save you BIG $$$ on your Trucking Insurance!
Commercial Trucking Insurance limits for new Ventures in Colorado
FMCSA and Colorado CDOT need the same minimum insurance limits for hauling freight across state lines:
– Cargo Vans and Sprinter Insurance: $300,000 CSL Commercial Auto Liability coverage
– Hot Shot Truckers Insurance and any larger Truck units: $750,000 CSL Commercial Auto Liability
CSL stands for Combined Single Limit.
Brokers and customers usually need $1,000,000 CSL Liability as an industry standard.
So while starting with the minimum is okay, it’s smart to consider the cost of the $1,000,000 Commercial Auto Liability limit in the long haul.
What’s Commercial Auto Liability Insurance for Truckers?
It’s not just about what the government requires you to carry.
This coverage has got your back for Bodily Injury and Property Damage if cause harm to others.
- Bodily Injury Liability steps up 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 takes care of 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 typically in a “CSL” or Combined Single Limits format.
Your insurance policy covers you for the amount of Commercial Auto Liability you buy.
Colorado Commercial Trucking Insurance extras to consider:
- Uninsured or Underinsured (UM/UIM) Bodily Injury Protection acts as a safety net for you and your passengers if the driver who hits you doesn’t have enough insurance. It covers your injuries and your passenger’s injuries, including any out-of-pocket expenses you might have.
- Medical Payments (MedPay) Protection helps with medical and funeral expenses if you or your passengers get hurt in a crash.
Both are pretty affordable, and any good truck insurance broker should include them in your proposal.
She’ll also guide you on the right amount and type of Motor Truck Cargo coverage you should get.
With Physical Damage Insurance, you’ve got both Collision and Comprehensive (Comp) coverage for your truck
If your truck gets banged up or wrecked in an accident, Collision coverage kicks in. It also helps cover repair or replacement costs if your truck hits something, flips, or rolls over.
And when your truck faces damage from stuff like theft, falling trees, wind, hail, or unexpected animal run-ins, Comprehensive coverage has got your back.
Physical Damage insurance typically depends on either the Actual Cash Value (ACV) of your truck or the Stated Amount.
For a solid Stated Amount valuation, be sure to include anything permanently attached to your ride, such as aftermarket parts, mounted gear, and lasting upgrades. Don’t forget those accessories that are essential parts or help secure the load.
Consider these examples and chat with your truck insurance broker. She’ll help you figure out how much Permanently Attached Equipment coverage to add to your policy:
– Stylish custom paint, decals, and signage
– Electronic components securely fastened to your truck
– Convenient coupling devices such as 5th wheel receivers
– Efficient vacuuming tools and accessories
– Functional mounted toolboxes, shelving units, and ladder racks
– Essential tarps, chains, and binders
Want more details before you dive into setting up your Motor Carrier Authority?
Check out CIS Commercial Truck Insurance Blog for Owner Operators or just give us a call at:
We’d love to chat with you about your new venture!
CIS 330-864-1511
