Meeting Pennsylvania Trucking Insurance Requirements just got easier as a brand new insurance company steps in to compete for Motor Carriers.
Pennsylvania Motor Carriers operating Interstate, or across state lines, must follow FMCSA’s requirements for Commercial Auto Liability Insurance.
FMCSA is the Federal Motor Carrier Safety Administration.
They oversee the DOT – Department of Transportation.
If you are only hauling freight for hire inside Pennsylvania state lines, then PennDot and PUC takes over.
PennDot is the Pennsylvania Department of Transportation and offers an 196 page Commercial Driver’s Manual.
PAPUC is the Pennsylvania Public Utility Commission.
Intrastate commercial vehicles must still file a new Motor Carrier application with PAPUC.
For Pennsylvania Motor Carriers operating Interstate, or across state lines – Here’s how Truckers proof of insurance works:
- After you register with FMCSA as a new Motor Carrier you will receive your DOT number.
- Your insurance company attaches to your DOT number and sends the proof to FMCSA.
- This proof of insurance that is sent to FMCSA is called your BMC-91X filing.
- The MCS-90 you hear referenced is simply your insurance company promising FMCSA you have coverage in place.*
- Your insurance company also sends your proof of insurance to PennDot and PAPUC.
- Within a month, FMCSA issues your actual MC number which is your Motor Carrier interstate operating authority.
*The MCS-90 acts like a bond, with your insurance company promising a protection to the public with your BMC-91X. It’s also why you can’t immediately cancel this type of insurance, there is a 35 day lag time to ensure all parties are aware when coverage is no longer in place.
If you have a professional Truck Insurance Broker, don’t worry about it…she’ll take care of you:)
And just a heads-up—don’t apply for your DOT number just yet!
Before you dive into getting a new DOT, make sure the insurance costs fit your budget.
Reach out to us first to find out what your trucking insurance will look like once you’re up and running.
It’s a good idea to understand your insurance expenses before starting any new venture, especially in trucking.
So many newbies jump the gun by getting that new number not understanding timelines for compliance and cost.
We’ll provide a straightforward premium estimate before things get too complex and ensure you buy the insurance at the right TIME.
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.
Why is Commercial Trucking Insurance in Pennsylvania so expensive?
Insurance rates for new trucking ventures in Pennsylvania are pretty standard, but they can still be costly.
It’s good to know this ahead of time, which is why we do the shopping for you!
The main problem is that commercial trucking insurance has faced losses for years due to accidents and lawsuits.
This has resulted in fewer insurance companies getting into the commercial trucking market, which drives rates up because of limited competition.
But here’s the exciting part: some great news for Pennsylvania Owner Operators is finally here!
A new Trucking Insurance Company enters Pennsylvania
A new financial powerhouse is making waves in the Commercial Auto Trucking Insurance market, expanding one state at a time.
The Pennsylvania program has just kicked off, offering great premiums for both new startups and seasoned Motor Carriers.
This nationwide launch now includes Pennsylvania, Arkansas, Arizona, Colorado, Florida, Illinois, Indiana, Maryland, Ohio, Oklahoma, Oregon, South Carolina, Texas, and Virginia, with more states joining in the next few months.
Select Independent Professional Trucking Agencies have been handpicked to start this launch, and we at CIS are excited to share all the details with you!
CIS: 330-864-1511
15 Minutes Can Save You BIG $$$ on your Trucking Insurance!
Insurance limits for Interstate Pennsylvania Trucking for Hire
Pennsylvania follows FMCSA guidelines for Interstate Trucking for Hire insurance:
- Cargo Van and Sprinter Insurance = minimum $300,000 CSL Commercial Auto Liability
- Hot Shot Trucking Insurance and Larger Trucks = minimum $750,000 CSL Commercial Auto Liability
CSL means Combined Single Limit
In practice, Interstate Brokers and customers usually look for at least $1,000,000 CSL, no matter what kind of vehicle you have.
Starting with the minimum limits is fine, but just make sure to consider the cost of that $1,000,000 Commercial Auto Liability so you don’t limit your options for freight later on.
Quickly understand what Commercial Auto Liability IS:
Think of this Liability as “you’re liable to get sued.”
It’s there to protect you if you’re driving and accidentally hit someone or something.
Commercial Auto Liability insurance has two parts, Bodily Injury and Property Damage
Bodily Injury kicks in if you injure or kill someone.
It covers everything from medical bills to funeral costs.
Property Damage kicks in for the other vehicle you’ve hit.
It also covers other property from cars and trucks to bridges, buildings, and other 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’re covered up to the limit of insurance you choose for your policy.
Truckers General Liability is different from Truckers Commercial Auto Liability
Commercial Auto Liability kicks in when you’re behind the wheel.
General Liability covers you for things that can happen when you’re not driving your truck.
What’s the most common claim? Delivery mishaps during loading and unloading.
Here are some other examples of where General Liability for Truckers comes into play.
These days, many of your customers and brokers are asking for this extra Liability coverage.
The good news? It’s still pretty affordable.
Be sure to get a quote upfront and add it to your policy whenever you or your customers want it.
Here are some Pennsylvania Trucking Insurance extras:
If you get hit by a driver without insurance or with not enough coverage, Uninsured or Underinsured (UM/UIM) Protection has your back.
It covers injuries for you and your passengers, plus any out-of-pocket expenses.
Medical Payments (MedPay) Protection steps in for medical and funeral costs if you or your passengers are injured in a crash.
Both options are budget-friendly, and your truck insurance broker will include them in your proposal.
She’ll also help you figure out the right amount and type of Motor Truck Cargo coverage you need.
Quickly understand what Physical Damage in Trucking Insurance means:
Physical Damage also has 2 parts, Comprehensive and Collision.
Collision insures the truck itself when you cause an accident.
So if your truck is damaged or totaled by running into something, or rolls over – Collision kicks in.
Comprehensive is just about everything else…
Comp repairs or replaces your truck if it’s stolen, damaged by a fallen tree, hit by wind, hail or even animals.
Physical Damage in Trucking Insurance can be based on either the ACV, Actual Cash Value or Stated Amount of your truck.
You set the limit of a Stated Amount value, but do not overvalue your truck.
This is because the insurance company will only pay UP to the Actual Cash Value. This avoids tempting insurance fraud by overflating a vehicle’s value to collect on insurance later.
Do remember when establishing your Stated Amount to include any permanently attached equipment like HVAC, sleeper area, loading and unloading gear like mounted equipment and other customization of your truck.
Looking for more info before jumping into setting up your new Motor Carrier Authority?
Check out the CIS Commercial Truck Insurance Blog for Owner Operators.
Or just give us a call at CIS at 330-864-1511 to chat
We’re here to help you succeed in your new cross-country adventure!
