How to get Low Down Payment Commercial Truck Insurance
The steps to becoming a new Motor Carrier can seem daunting because you don’t know what you don’t know, right?
As a new trucker just starting out, you probably DO know that truck insurance is one of the biggest costs you’ll need to manage.
But with a few pointers, you can keep your overhead in check with the cheapest, most flexible premiums right from the start.
We hear these basic questions and more from new truckers every day:
- How do I get a DOT number?
- Why do I need my MC number?
- When should I get the Truck Insurance?
- How much insurance do I really need?
- What affects my premium?
- Can I get no down payment commercial truck insurance?
- How do I get lower down payments?
- Why do I need to carry $1,000,000 in Liability?
- Why isn’t FMCSA showing my correct insurance limits?
At CIS, we’re Transportation Insurance Experts, and we’re here to help make your new DOT number, motor carrier authority and commercial truck insurance easy to understand.
Keep reading to learn about the truck insurance you’ll need, how to get the lowest down payments, then follow the simple steps to start your own Motor Carrier Authority!
Why Get Your Truck Insurance Quote Before your DOT number?
Truck insurance is one of the biggest costs you’ll deal with as an independent trucker and budgeting is essential for success.
Getting your truck insurance estimate upfront gives you a baseline of what to expect.
Why spend $300 on your DOT and other start up expenses if you might not be able to afford the commercial truck insurance?
Calling CIS connects you with a free, friendly Truck Insurance Pro🙂
She’ll guide you through the DOT number and MC number process when the time is right.
Buying a policy too early or too late is like throwing money away on something you’re not even using.
Timing is everything.
We’ll also be straight with you—if your insurance premium makes sense and allows for a solid profit we’ll let you know.
If so, THEN we’ll help you go through the Simple Steps on How to Get an MC Number.
It includes both your DOT Number and MC Number instructions.
From there, we help you focus on making a great living as an independent trucker while we ride shotgun!
For now, read on for everything you’ll want to know about becoming a new Motor Carrier.
Who Decides How Much Insurance Motor Carriers Need?
FMCSA is the Federal Motor Carrier Safety Administration which oversees the Department of Transportation in the U.S.
If you’re moving freight across state lines with a Cargo Van, Sprinter, Hot Shot, Box Truck, or Semi, the FMCSA requires you to meet specific minimum insurance limits.
These are determined based on the unit’s weight and the type of freight carried.
What are FMCSA Insurance Requirements for Truckers?
- Commercial trucks over 10,001 GVW need at least $750,000 in liability coverage.
- If you’re a hot shot dually with a gooseneck trailer, you’ll also need a minimum of $750,000 in liability insurance. Learn more about Hot Shot Insurance.
- For cargo vans and sprinter vans hauling freight across state lines, the minimum liability requirement is $300,000. Check out more details on Cargo Van & Sprinter Insurance.
FMCSA Insurance Filing Requirements Chart
What Type of Liability Do You Need for a New MC Number?
Primary Commercial Auto Liability is the coverage all truckers need to legally drive on the road, regardless of DOT or MC number.
This coverage insures you if you hit someone or something and cause Bodily Injury or Property Damage.
Primary Commercial Auto Liability covers you 24/7.
The only time you wouldn’t need your own Primary Commercial Auto Liability is if you’re an Owner Operator leased to a Motor Carrier. In that case, you’d be hauling for them or working on their behalf under their Primary Insurance. You’d carry your own Non Trucking Liability.
In order to activate your own authority, means you’ll need to have Primary Commercial Auto Liability insurance in place.
Buying the wrong type of Liability insurance will not activate your MC number and you will have wasted time and money.
You can check out Commercial Truck Liability Explained to learn more about different types of liability.
What Affects the Cost of your Truck Insurance Most?
ONE: Your insurance credit score is the number one factor that impacts your truck insurance.
You already know that some states are simply more expensive than others, but there are ways to lower your insurance premium.
Cleaning up your credit score is the number one thing you can do to get cheaper truck insurance.
Even if you won’t be working as a trucker right away, now’s the time to address any credit issues or late payments.
Take the time to run your credit report.
If your credit score isn’t quite where you want it to be, here’s a quick and easy tip to help you get started:
Set up your current insurance payments on EFT (electronic funds transfer).
It doesn’t matter what kind of insurance you currently have, just set it up on EFT or paid in full now.
If you have trouble remembering to pay your other bills on time, then set them up on EFT as well.
Late payments greatly affect your insurance credit score.
Get on top of your financial responsibility and it will reward all aspects of your life moving forward.
When your payments are always on time, and your insurance provider sees you as financially reliable and someone they want to insure.
Where can I get No Down Payment Truck Insurance?
As a new start up Motor Carrier, your options for truly no money down are not the best.
Before they’re willing to take a chance on an unknown company, insurance providers want to know you’ve got some skin in the game.
You may find premium financing companies offering no down payment then spread the cost over 10 monthly payments, but you’ll pay dearly for that convenience.
Factoring companies may offer to defer the initial down payment, letting you pay it back gradually from your weekly income in the future.
We can’t stress this enough: don’t go this route.
The fine print can say you’re agreeing to a huge insurance bill a few months later even if things don’t quite go your way.
Starting a new trucking business involves taking on significant financial risk.
Mainstream truck insurance providers offer direct billing with monthly payments for small business owners who show potential for success.
So don’t rush the process. Take some time to do your research and save up your money. We want you to succeed.
When you’re ready to go, we’ll help you pick a well-known truck insurance provider that offers direct billing.
We’ll find the one with the lowest down payment you can get.
GEICO and Progressive are known for some of the lowest rates and most flexible payment plans for new truckers, but there are a few others as well.
More Low Down Payment Commercial Truck Insurance Tips
So you already know that your credit score is the #1 factor for low truck insurance premiums.
But what’s the second?
TWO: Your Proof of Prior Insurance, or POP greatly impacts your commercial truck insurance down payment.
Insurance companies like to see a pattern of responsibility.
They don’t want to insure drivers who have only been carrying the state minimum requirements of coverage.
Raising your personal car insurance limits to $100,000 per person and $300,000 per accident makes you appear more responsible to insurance providers.
They prefer to see these limits for over a year, at least, so get started now to save much more later.
These generally accepted average limits of $100,000 per person and $300,000 per accident auto liability establishes you as a responsible “grown up” so to speak:)
Paying your bills on time and proof of prior insurance combine to give you the lowest down payment commercial truck insurance offers.
THREE: Policies set up with EFT or Electronic Funds Transfer not only helps your credit score, it lowers your commercial truck insurance premium.
When you choose EFT, commercial truck insurance policies usually get a 2% to 5% discount on Liability and another 5% to 7% off on physical damage.
FOUR: When you enroll in ELD, electronic logging device monitoring you’ll save 5% to 10% at enrollment and up to 15% with an established safety score.
Savings are locked in for the duration of the policy period.
FIVE: Take advantage of every discount your state offers.
All states are a little different when it comes to base premiums and discounts.
For example, commercial truck insurance in Florida can tend to fluctuate on base cost, but Progressive still offers 4% CDL discounts and 4% 6 month policy discounts.
SIX: Adding General Liability to your Commercial Auto Policy means more discounts for you.
Discounts from 5% to 10% apply to your truck insurance policy when you add General Liability.
A lot of your customers might ask you to have Truckers General Liability insurance in addition to Commercial Auto Liability.
It’s there to cover any accidents that could happen when you’re not driving, but still on their worksite.
You can read more about this additional coverage further below in this blog, then check with your customers and brokers.
If they say you’ll need the coverage then it’s a good idea to bundle it with your commercial auto liability policy and get the discount.
Lowest Down Payment Commercial Truck Insurance for You
In the end, it all comes down to YOU when it comes to scoring the lowest down payment on your truck insurance.
Things like your credit score, proof of prior insurance, how you decide to pay, and the discounts you choose are what determines your premium and payment options.
Use these together, and you’ll get flexible and low down payment options for all your insurance.
DOT Number vs MC Number
The question is always the same—What comes first, the Insurance, DOT, or MC?:)
- Start by getting a quote for insurance.
- Apply for your DOT number.
- Purchase your insurance and file your BOC-3.
- Your Motor Carrier Authority–MC number–gets activated.
Cheat Sheet for DOT Number and Motor Carrier Authority
Here’s an easy to follow cheat sheet How to get your MC number courtesy of CIS.
We’re happy to answer any questions you may have, just give us a call (330) 864-1511.
What Are Filings on a Motor Carrier Authority?
The 91X/MCS90 insurance proof and BOC-3 form are considered the legal filings that activate your MC Number, or Motor Carrier Authority.
Once you’ve got your truck insurance and BOC-3 squared away, these forms are linked to your DOT number and sent electronically to the FMCSA.
This proves you are in compliance with their requirements to legally haul freight across state lines as a Motor Carrier.
Your official authority certificate will arrive in the mail about 2 weeks after your MC number shows up as active online with FMCSA.
There’s a limited time period to set up your insurance and BOC-3 to activate your authority which is another reason to connect with your CIS Agent from the very beginning of your venture.
The better you have your ducks in a row, the least money spent on insurance and time wasted not hauling freight.
Why Carry $1,000,000 Trucking Liability Instead of the Minimum FMCSA Limits?
These days, industry standards have shifted.
$300,000 for Commercial Vans and $750,000 for Hot Shots and larger Trucks required by FMCSA just isn’t the norm anymore.
You can start your truck insurance policy at lower limits to get your authority active, but in most cases you’ll need to bump that liability limit up to $1,000,000 to actually start getting loads.
It’s better to know this ahead of time so you can plan your budget.
The timing of it all is key, and that’s where your your truck insurance pro at CIS comes in to help make sure you’re not wasting money.
She’ll help you figure out the right limits at the right time.
You can read more at Why Cargo Vans & Sprinters carry $1,000,000 Liability that applies to larger trucks as well.
Where Will I see My FMCSA Proof of Insurance?
FMCSA uses the SAFER system to post company snapshots of all DOT Authorities nationwide, and post proof of minimum insurance under SAFER Licensing and Insurance.
You can easily look up any company with a DOT Authority history by entering their DOT number into the system—it’s that simple!
And remember that you do not need to hire anyone to set up your DOT Motor Carrier Authority or check details about your company on the FMCSA Safer platform.
At this point in your business, you’ve got all the info you need right at your fingertips. So why spend extra money just to have someone else look at the same screen?
Down the line, safety advisors might make sense, but for now, you’re good to go.
Why does FMCSA show your insurance as less than the $1,000,000 you purchased?
The FMCSA’s job is to protect the public from underinsured commercial truckers by enforcing the minimum required insurance limits.
That’s where the MCS90 comes in—it’s an endorsement on your policy that guarantees the public is protected for those minimum amounts.
- Commercial Vans under 10,001 GVW are required to carry $300,000 minimum coverage.
- Hot Shots and Trucks need $750,000 minimum coverage.
The 91X acts like a bond that promises the public that if your $1,000,000 insurance wasn’t active at the time of an accident, the MCS90 steps in as backup coverage at the lower legally required amounts of $300,000 or $750,000.
When you check out Safer Licensing and Insurance, you’ll see your insurance company’s promise to the public through your 91X Certification.
Simple as that!
That Explains Why Insurance Companies Require 35 Days’ Notice to Cancel Truck Insurance
By law, there’s a mandatory 35-day waiting period before an insurance company can officially cancel your policy.
This gives everyone a heads-up in case your insurance lapses.
To be clear, if you bought $1,000,000 in truck insurance and your policy is active, you’re covered up to that full amount when you make a claim.
The MCS-90 only comes into play if you don’t have insurance in place, and the courts should decide you were at fault with no insurance in place.
You can learn more about how your MCS90-91X requirements tie into your commercial truck insurance for filings and cancellations.
What Other Insurance Does a New Motor Carrier Need?
In addition to Commercial Auto Liability, Motor Carriers need to make sure the cargo they’re hauling is insured too.
Though FMCSA has no minimum cargo coverage requirement for general freight haulers, most opt for the industry standard of $100,000 for Motor Truck Cargo Insurance.
If you’re in the Hot Shot business, keep in mind that customers often want $250,000 in coverage.
It makes sense because two or three cars can easily add up to more than $100,000.
Need a quick overview of what’s covered (and what’s not) under a standard motor truck cargo policy?
Check out Commercial Truck Cargo Insurance Explained.
Do you need Truckers General Liability Insurance?
We touched on General Liability as a potential additional discount factor earlier in this blog.
More and more of your customers might ask you to carry something called Truckers General Liability Insurance.
This is often confused with Commercial Auto Liability which covers you while driving your truck.
Commercial Auto Liability is often referred to as your PRIMARY insurance.
General Liability, on the other hand, covers you for injuries or property damage you might cause when you’re not driving your truck.
This insurance isn’t required by FMCSA, but brokers or customers might request it.
Common coverage limits are $1,000,000 per occurrence and $2,000,000 aggregate (yearly).
Want to know more? Truckers General Liability Explained breaks it all down, including why so many customers are requesting this additional coverage.
For a quick overview of all the coverage types discussed here just check out Commercial Truck Insurance Basics.
It’s simple, straightforward, and super helpful for newbies and established Motor Carriers alike!
Can a new Motor Carrier get Affordable Truck Insurance?
Yes, affordable Motor Carrier Insurance is out there for new venture Motor Carriers.
But trucking insurers have faced losses for years, making them cautious about new clients.
That’s why getting the right help from the start is so important.
If you shop around too much and run a bunch of competitive quotes, you will very likely end up burning bridges and having no options at all.
Insurance companies aren’t big fans of seeing different scenarios for the same risk.
It can come across as inconsistent and make you seem less trustworthy if you keep changing your answers.
Yes, they keep track of this activity so let us help you get around that:)
Which Insurance Companies Cover New Motor Carriers?
For years, Progressive Commercial Truck Insurance has been the go to provider for new startup Motor Carriers.
While a few other small outliers have shown interest in new trucking startups, most have melted away after getting nailed with losses.
However, another established and well funded insurance contender has entered the marketplace for trucking.
GEICO has launched a nationwide trucking insurance program designed for Motor Carriers with 1-9 units.
Their premiums are highly competitive for new and established carriers alike.
They are definitely giving Progressive a run for their money as Gecko battles Flo with new lower rates for truckers!
CIS is an independent agent representing both Progressive and GEICO.
You can read more about GEICO Commercial Truck Insurance.
Where Does a New Motor Carrier find freight?
All the insurance savings in the world won’t help if you don’t have a steady supply of freight to haul.
Research where you will be getting your loads before you get your DOT.
If you have a few customers already that’s great, but typically new startups depend on a reliable loadboard to secure consistent freight.
Larger trucks tend to lean towards loadboards DAT, Truckstop & 123Loadboard.
For Cargo Vans, Sprinters Hot Shots and Straight Trucks we recommend the loadboard MyVirtualFleet.com.
Why MyVirtualFleet?
- With MVF, you get to see the bid results so you know exactly what’s happening behind the scenes.
- Whether you’re just learning or want to sharpen your skills, MVF helps you master line-item bidding like a pro.
- Plus, MVF shows you how to build your own direct customers so you’re not stuck relying on bid boards forever.
Whether you’re just starting out as a Motor Carrier or already established and looking for more opportunities, our clients have great things to say about working with MVF!
Time is Money
…and the timing of your FMCSA application for DOT to insurance to MC authority to obtaining loads takes…TIME.
Do as much research as you can BEFORE you embark on your new Motor Carrier venture.
Talk to your CIS Trucking Pro from the beginning to ensure the fastest DOT process with minimal cost.
She knows all the questions and will guide you in preventing costly mistakes…and help you make new connections.
Give us a call at CIS (330) 864-1511
We’d love to help you kickstart your journey to independence!