Hot Shots vs Expediters Trucking for Hire
You may have heard the terms Hotshot and Expediting used interchangeably.
- Hot Shots are 1 ton Dually’s with Gooseneck Trailers
- Expediters can be Cargo Vans, Sprinters, Straight Trucks or Tractor Trailers
Insurance requirements differ depending on weight of vehicles and commodities hauled.
While these two types of trucking have some similarities there are other important differences you may want to know.
How are Hotshots and Expediters similar?
- Hotshots and Expediters are Trucking for Hire operations of a time sensitive nature.
- They both tend to operate between 300 and up to unlimited miles. Many drivers don’t go home the same day they deliver the freight. In fact, some Hotshot and Expediter drivers can stay on the road for weeks at a time.
- Both Hotshot and Expediting largly consists of Owner Operators. This means the drivers own their own vehicles and operate as independent contractors.
- FMCSA requires most Hotshots and Expediters to establish a DOT operating authority for hauling freight across state lines.
[Related Story – How to Become an Owner Operator with no Experience]
FMCSA is the Federal Motor Carrier Safety Administration responsible for regulating commercial motor vehicles.
Both Hotshot Insurance and Expediting Insurance starts with the trucking liability limits FMCSA requires below.
Hotshot Trucking
A Hotshot usually operates with a 1 ton Dually Pick Up Truck with a 9,000 lb rear axle minimum.
The truck uses a gooseneck or fifth wheel hitch in the bed that attaches to various types of trailers depending on freight.
This combination brings the GVW over 10,001.
Many Hotshots focus on hauling cars or “toys” like motorcycles, boats, golf carts, RVS or trailers.
Dually pick up trucks often use a 3 to 4 car wedge to haul multiple cars or choose enclosed trailers to better protect the cargo.
A lot of Hotshots deliver RVs from one state to another simply towing the unit behind them.
Some Hotshots use flatbed trailers to haul machinery, farm equipment and other large general cargo.
Expediter Trucking
An Expediter can operate with a cargo van, sprinter, step van, straight truck or tractor trailer.
Common motor truck cargo for an Expediter can be auto parts, machinery, equipment for production lines, pharmaceuticals or anything that requires fast delivery.
The difference between Hotshot Insurance vs Expediting Insurance
Vehicles that haul freight for hire across state lines are required to establish their own DOT authority unless they are operating as a leased on Owner Operator for another Motor Carrier.
FMCSA requires most Hotshots and Expediters to carry a minimum limit of Commercial Auto Liability as follows:
FMCSA minimum Commercial Auto Hot Shot Insurance limit for Duallys with Trailers is $750,000.
Expediting Insurance is different depending on the weight of the truck hauling the freight.
For example, Commercial Vans under 10,001 GVW are only required to carry $300,000 Commercial Auto Liability.
Commercial Van Insurance covers Cargo Vans and Sprinters.
But if the Expediter is using a larger unit then the minimum Commercial Auto Liability required to establish a DOT authority is $750,000.
Box Truck & Straight Truck Insurance is commonly purchased by Expediters.
[Related story – What is the Definition of a Commercial Vehicle]
Industry Standard Liability Limits for HotShots and Expediters
It’s important to know that industry standards have increased beyond FMCSA minimum limits list above.
The generally accepted Commercial Auto Liability limits have risen to $1,000,000.
This increase in industry standard applies for both Hotshots and Expediters across all unit types.
So while it’s possible to obtain your USDOT number with the lower amounts required by FMCSA, it’s prudent to ask your agent what $1,000,000 auto liability will cost.
This is because you will very likely have a broker or shipper ask for that higher limit sometime in the future.
A professional truck insurance broker can save you money by starting your policy at one limit to establish your DOT.
She will then help you make the necessary changes when you’re up and running.
If you want to learn more about FMCSA requirements, check out this related story Commercial Truck Insurance Requirement MCS90.
Hotshot Cargo Insurance vs Expediting Cargo Insurance
FMCSA does not require proof of a Cargo Insurance limit to establish a DOT operating authority.
Market forces are what controls how much Cargo Insurance you will need.
In order to obtain freight contracts, Hotshot Motor Truck Cargo usually starts at $100,000 with the most common limit of $150,000.
Many Hotshots carry $250,000 for higher end cargo.
Expediting Cargo Insurance is different
Because of the large fluctuation in types of freight commodities, Expediting Cargo Insurance limits can start as low as $25,000 to as high as $250,000.
The most common amount of Expediting Cargo Insurance requested is $100,000.
Take a few minutes to learn how your Cargo is actually insured in this related story- What does Motor Truck Cargo Cover?
How much should your Hotshot Insurance or Expediting Insurance cost?
There is no average when it comes to Hotshot Insurance or Expediting Insurance.
There are simply too many credit, age, driving history and state variables.
Work with a professional Truck Insurance Broker.
She will be able to run a proposal for you in the same day and offer suggestions.
Is there a new BIG company insuring HotShots and Expediters
Yes, and possibly in your state.
In the past Progressive has been the go to insurance provider for new startup and established HotShots and Expediters.
But now the BIG story is the emergence of GEICO into the Hot Shot and Expediting Insurance scene.
CIS is delighted to partner with them to offer more choices for our guys.
The premiums are EXCELLENT so call us before you plunge into the insurance pool…we’ll quote both companies for you at the same time.
CIS: 330-864-1511
Where does a HotShot or Expediter find freight?
No amount of insurance savings can compensate for a lack of freight to haul.
It’s crucial to research your load sources before your establish your DOT authority or buy your insurance.
While having existing customers is beneficial, new ventures often rely on dependable load boards for a steady flow of freight.
For Cargo Vans, Sprinters, HotShots and Straight Trucks we recommend the MyVirtualFleet.com load board.
For Newbies as well as established companies, My Virtual Fleet offers 3 free extras to help you get more freight.
- After the bids they share the results with you so that you can see what’s going on behind the scens of quoting.
- They also teach you how to line item bid, or perfect your knowledge.
- They also teach you how to develop your own Direct Customers so you aren’t so reliant on a bid board at all.
Your next step as a new HotShot or Expediter
Talk with a commercial insurance broker who specializes in HotShot and Expediting Insurance for Owner Operators and Motor Carriers.
She knows the right questions to ask to get you up and running fast with no costly mistakes.
…We’d love to help you get started and succeed.
Give us a call at CIS 330-864-1511 today.
15 Minutes really could save you BIG $$$ on your HotShot OR Expediting Insurance!
