What does motor carrier insurance provide? In this article, we will see what moto carrier insurance covers.
What Does Motor Carrier Insurance Provide?
Read this article to know fully about this kind of insurance. what it covers and provides to its customers.
A new applicant must get commercial truck insurance and submit the required insurance documents to the Federal Motor Carrier Safety Administration (FMCSA) before the FMCSA will grant them a motor carrier authority. Prior to starting, it’s critical to identify the coverages you require. This manual will make that process simpler.
The only insurance mandated by the FMCSA is commercial motor liability insurance, unless you haul domestic products. This insurance covers incidents for which you or your driver are at fault and which cause injury to someone else or damage to their property.
The quantity of liability insurance a motor carrier need depends on the cargo it transports. The specifics are detailed in this table.
Be warned that these restrictions are unreasonably low, according to a recent FMCSA research. Within the following several years, anticipate an increase in these minimums.
Cargo insurance must be purchased by motor carriers that transport household items (such as moving companies) and must be a minimum of $5,000 per vehicle and $10,000 per incident.
Of course, even if you don’t carry any domestic items, you should still purchase cargo insurance. Very few brokers and shippers will work with a motor carrier that lacks cargo insurance.
Damage to property, general liability, etc.
While not essential to obtain motor carrier authority, general liability insurance and physical damage insurance will probably be needed.
The full details of the motor carrier insurance regulations are detailed on the FMCSA website if you need further information.
The FMCSA Insurance Filing Process
Before issuing you a new MC number, the FMCSA requires the BMC-91, the BOC-3, and the MCS-90 insurance paperwork. These forms are not filled out by you. The FMCSA wants the insurance firm to submit all forms in order to prevent fraud.
However, it is your duty to provide your insurance provider with the data it need in order to submit the forms. Therefore, submit your application to the FMCSA first. Then get in touch with your insurance provider and ask them to submit the necessary paperwork under your docket number. You’ll then be able to proceed to the following phase of the procedure.
How to Find Insurance
Comparing multiple commercial insurance providers at once is the best way to find insurance for your new company. With the help of our technology, three agents will compete for your business and provide you the best rates on all the coverages you require. If you have any additional inquiries, the agents will be able to provide you with information that is particular to your company.