For a Motor Carrier to legally transport goods across state lines, it is essential to comply with the FMCSA’s minimum requirements for Commercial Auto Liability Insurance, as well as those set by PSC:
FMCSA is the Federal Motor Carrier Safety Administration.
The FMCSA oversees Interstate regulations through the Department of Transportation – or DOT.
Commercial vehicles transporting goods for hire across state lines must have a DOT Motor Carrier Authority.
Commercial trucks operating soley within South Carolina lines are regulated by the PSC.
PSC is the Public Service Commission which oversees transportation in South Carolina.
PSC requires commercial trucks to obtain a South Carolina Intrastate DOT number.
Required Proof of Insurance for Motor Carriers in South Carolina:
To legally haul freight across state lines, you will need to meet the minimum Commercial Auto Liability Insurance limits set by FMCSA and in turn, South Carolina PSC.
Here’s how Trucker’s Proof of Insurance works:
When you initially register with FMCSA they will give you a DOT number.
The insurance company sends proof of your insurance to FMCSA referencing your DOT number.
That proof of insurance is called your BMC-91X Filing.
An MCS-90 is just the endorsement to your policy which guarantees the insurance to FMCSA.
At the same time your insurance provider will also send your proof of insurance to South Carolina PSC in a Form E.
Once that is completed you are granted an MC, Motor Carrier Operating Authority and are legal to haul freight across state lines.
Remember that your professional Truck Insurance Broker will walk you through all of this on the phone.
South Carolina also has an especially user friendly SCDMV Trucking Portal you can utilize when it’s time to start your new trucking venture.
However, don’t jump the gun on that DOT Registration just yet!
There’s no point in spending the money for a new DOT if the insurance isn’t affordable.
Please call us first to get some numbers on what your trucking insurance will cost.
It’s always best to get a strong estimate on insurance costs before diving into any new business.
The last thing you want to do is waste time spinning your wheels.
We’ll be upfront with you about estimating your premium before you get in over your head.
There might be better opportunities hauling for someone else until you have your own DOT sorted out.
Why is Commercial Trucking Insurance so Expensive for New Startup Motor Carriers in South Carolina?
South Carolina’s commercial trucking insurance rates are relatively moderate compared to those in other states. But for new trucking startups the expense can still present a challenge.
High losses and a lack of competition has been dragging down the commercial trucking sector for years.
But there’s FINALLY some good news on the trucking insurance horizon:
A new South Carolina Commercial Trucking Insurance Company is here
The trucking for hire insurance sector now has a new contender for Owner Operators and small Motor Carriers.
This big financial player is offering a brand new insurance choice for both seasoned pros and newbies just getting started.
The nationwide launch is right on track with South Carolina, Ohio, Indiana, Illinois, Florida, Colorado, Texas, and Arizona already on board.
The new program just launched through select Independent Agents, and they’re offering very attractive premiums for our Owner Ops and small Motor Carriers across the board.
CIS is pumped to partner up with them! Give us a call, and we’ll fill you in on all the details:
CIS: 330-864-1511
15 minutes could save you BIG $$$ on your Trucking Insurance!
Commercial Trucking Insurance limits for new ventures in South Carolina
FMCSA and SC PSC require the same minimum insurance limits to haul freight for hire across state lines:
$300,000 CSL Liability is required for Commercial Van and Sprinter Insurance
$750,000 CSL Liability is required for larger units including Hot Shot Truckers Insurance
However, it’s important to note that in the real world your brokers and customers will very likely require a minimum of $1,000,000 CSL (Combined Single Limits)
You could begin your new DOT authority with the minimum liability limits to get started, but it’s good to know your eventual cost for that realistic $1,000,000 Commercial Auto Liability limit.
What IS Commercial Auto Liability Insurance?
Commercial Auto Liability includes coverage for Bodily Injury and Property Damage when you’re responsible for harm to others.
Bodily Injury Liability steps in if there’s an accident where someone is hurt or worse. It helps with medical bills, rehab, long-term care, funerals, lost income, and pain and suffering.
Property Damage Liability covers the costs of damaging someone else’s stuff, like fixing or replacing their vehicles, buildings, or even pets.
In commercial trucking, Bodily Injury and Property Damage are usually bundled together under “CSL” or Combined Single Limits.
Your insurance policy pays up to the amount of Commercial Auto Liability you purchase.
South Carolina Commercial Trucking Insurance extras to consider:
Ever heard of Uninsured or Underinsured (UM/UIM) Protection? It’s like a safety net for you and your passengers in case you get hit by a driver with little to no insurance. This coverage kicks in when the other driver is at fault and doesn’t have enough liability coverage.
Then there’s Medical Payments (MedPay) Protection. This one’s all about covering your medical and funeral bills if you or your passengers get injured in an accident.
Your professional Truck Insurance Broker can explain the cost of each coverage option in detail.
She’ll also discuss your need for Motor Truck Cargo insurance and what’s included in that coverage.
Spending a few minutes with her on the phone will ensure you get the right commercial truck insurance package for what you’re hauling.
Physical Damage Coverage for South Carolina Commercial Trucking Insurance Policies:
With Physical Damage Insurance, you get Collision and Comprehensive (Comp) coverage for your truck.
Collision coverage kicks in if your truck gets banged up in an accident.
It also helps cover repair or replacement costs if your vehicle collides with something, flips, or rolls over.
Comprehensive coverage comes to the rescue if your truck faces damage from incidents other than collisions, like theft, falling trees, wind, hail, or animal encounters.
Physical Damage insurance is typically based on either the Actual Cash Value (ACV) of your truck or the Stated Amount of your vehicle.
For a solid Stated Amount valuation, make sure to include anything permanently attached to your unit like aftermarket parts, mounted gear, and any lasting upgrades. And hey, remember to count in all those accessories that are key parts or help secure the load.
Consider these examples of permanently attached equipment:
– Custom paint, decals, and signage
– Electronics securely bolted or mounted onto your truck
– Coupling devices like 5th wheel receivers
– Vacuuming equipment and accessories
– Mounted toolboxes, shelving, and ladder racks
– Tarps, chains, and binders
There’s more to learn before you jump into starting your own Motor Carrier Authority. Want more info?
Check out CIS Commercial Truck Insurance Blog for Owner Operators or give us a call at CIS 330-864-1511 to chat.
