Illinois Motor Carriers need to meet FMCSA’s minimum Commercial Auto Liability Rules–GEICO is now offering a more affordable option! Here’s how it all works:
Illinois Commercial Truck Insurance Requirements for Motor Carriers follow the Federal Rules set by FMCSA.
FMCSA is the Federal Motor Carrier Safety Administration which oversees the Department of Transportation.
Commercial trucks hauling freight across state lines must first register with FMCSA.
Commercial Trucks operating Intrastate in Illinois are ALSO required to register for a Federal DOT number.
Then to legally haul freight for hire, FMCSA and the Illinois Department of Transportation (IDOT) ask for proof of minimum Commercial Auto Liability Insurance.
How does a new Motor Carrier show proof of insurance?
That part is actually pretty simple because you don’t do anything:)
Once you buy your insurance policy, your insurance company takes care of it for you.
They’ll send proof directly to FMCSA electronically—this is called your BMC-91X filing.
The MCS-90 is just the endorsement to your policy that allows all this to happen.
At the same time, your insurance company will send your Form E (proof of insurance) to IDOT.
(During this time you’ll be inundated by companies who want to process and file your BOC-3….this is simple.)
Once everything is filed, FMCSA approves your Motor Carrier Operating Authority. Boom, you’re ready to hit the road!
But hey, mistakes can happen.
That’s why we’ve put together this handy cheat sheet with easy Steps to Get Your DOT Motor Carrier Authority.
Guys, with a little homeework, you can absolutely handle this on your own without paying for a service—and CIS is here to help you out for free!
What are Illinois Insurance Requirements for Interstate Vehicles?
Vehicles hauling freight for hire across state lines–interstate–have minimum insurance requirements based on size and weight:
- $750,000 minimum for Hot Shots and other Larger Trucks hauling freight for hire
- $300,00 minimum for Commercial Cargo Van and Sprinter Insurance
Why is Trucking Insurance so Expensive for New Illinois Motor Carriers?
One of the reasons trucking insurance for new startups in any state is so expensive is because of poor underwriting results and the scarcity of insurance providers.
Be sure to get some estimated premiums with a professional transportation risk specialist BEFORE you register for your DOT.
Insurance is likely to be one of your highest expenses as a new Motor Carrier in any state.
Luckily, there’s some good news for new venture Motor Carriers—commercial trucking insurance is finally starting to see some positive changes:
Is there a New Trucking Insurance Company in Illinois?
Yes! Great news for Owner Operators and Motor Carriers—there’s finally some real competition in the insurance game!
GEICO just rolled out a brand-new trucking insurance program nationwide.
–And they are giving the competition a run for their money–especially when it comes to new startup Motor Carriers.
You can learn more about it at Illinois GEICO Commercial Truck Insurance.
What to Know About Commercial Auto Liability?
- Commercial Auto Liability includes both Bodily Injury and Property Damage
- Bodily Injury Liability is insurance if you cause an accident that injures or kills someone.
- It will pay for their medical bills, rehab, long term care, funeral expenses and lost earnings as well as pain and suffering.
- Property Damage Liability is insurance if you damage another person’s property.
- It can pay for replacements, repairs on other vehicles, structures or even a pet.
- Bodily Injury and Property Damage coverage for commercial trucking is usually Combined Single Limits, or CSL.
- A Liability claim will only pay up to the CSL limits you purchase on your insurance policy.
What other coverage does a Motor Carrier in Illinois need?
You will certainly be asked about Motor Truck Cargo Insurance.
FMCSA and IDOT don’t require it, but your brokers and customers will.
So, what is it?
Basically, it protects the freight you’re hauling. Simple enough, right?
Well, there’s a little more to it than that.
Most carriers choose $100,000 coverage limit, but your Trucker Pro Agent can help you figure out the right coverage for you—and when you’ll need it.
Want all the details before you chat with her?
Check out Commercial Truck Cargo Insurance Explained.
Who needs a DOT in Illinois?
In Illinois all vehicles transporting property with a Gross Vehicle Weight of 10,001 lbs or more must have a DOT number unless you are farm plated and hauling only intrastate.
That includes 1 ton Duallys with Trailers commonly used for Hotshot Trucking when the combination of both exceeds 10,001 lbs.
Hot Shot Truck Insurance usually falls under the $750,000 Liability requirement.
Other Illinois Commercial Truck Requirements
Once you have your DOT number and insurance in place, it’s time for your Illinois Motor Carrier Application (FormIOA-1)
Remember to complete your Unified Carrier Registration (UCR) which funds state highway motor carrier registration and safety programs.
The amount of your UCR fee is based on how many trucks you have.
Up to 2 trucks is $37 each and 3-5 trucks is $111 each.
UCR is clear that smaller units like HotShots, Cargo Vans and Sprinters are not necessarily exempt from this fee.
According to the UCR Handbook, page 30…
“Some motor carriers or freight forwarders may operate only vehicles that are not classified as commercial motor vehicles, typically because the vehicles are lighter or carry fewer passengers than vehicles included in the definition of the term commercial motor vehicle. Such a business must register for UCR because these entities have a federal MC number. Because the MC numbers are generated in the federal URS system, a USDOT number will also be issued, but it would ordinarily pay a UCR fee in the lowest bracket, because it operates no commercial motor vehicles.”
“If these lighweight vehicles pull trailers in interstate commerce and the gross combination weight rating or gross combination weight is 10,001 or more, the entity will account for all of these commercial motor vehicles and pay the applicable fee.”
Thinking about getting your DOT Motor Carrier Authority but want to learn more first?
Smart move! Check out our CIS Trucking Insurance Blog for answers to questions you didn’t even know you had:)
Give us a call anytime, we’d love to chat with you–CIS (330) 864-1511.
We’ve got your back to get you on the road with everything you need—and the best deals on truck insurance!
We are CIS, and We Make Your Truck Insurance Easy!
