Insurance checklist for a new trucking business in South Texas
What to buy, in what order, and what it takes to get from a truck purchase to a legal first load.
- The authority is not active until your insurer files proof of coverage. The policy has to be bound first.
- Experience is the single biggest factor. An owner with ten years of driving and a clean record gets a very different quote from someone with none, on the same truck.
- Get a quote on the specific truck and operation you have in mind before you buy. On a new authority, insurance can cost more than the truck payment, and that changes which truck you should buy.
Get the insurance quote before you buy the truck, bind the policy before you apply for authority, and set up automatic payment before the first load. New operators usually do these steps in the wrong order and lose weeks. This is the sequence that works, from the insurance side.
Before you buy the truck
- Get a quote on the specific truck and operation you have in mind. On a new authority, insurance can cost more than the truck payment, and that changes which truck you should buy
- Decide your lanes and radius, because they drive the price more than the truck does. See how radius is rated.
- Set up the business itself, since the policy and the authority should be in the business name
The filings
Apply for the USDOT number and, if you will haul regulated freight for hire across state lines, operating authority. The authority is not active until your insurer files proof of coverage, so the policy has to be bound first. Bound means the coverage is in force. The filing process is here. The MCS-90 that comes with the filing is a guarantee to the public, not coverage for you. See what it actually does.
The coverages to line up
- Auto liability, usually 1,000,000 dollars because that is what brokers require. The federal floor for general freight is 750,000 dollars in 49 CFR 387.9
- Physical damage on the truck and trailer, matched to what you owe and what they are worth
- Motor truck cargo, commonly 100,000 dollars, with the right endorsements for what you haul. See what cargo policies exclude.
- General liability, which more and more brokers and shippers ask for
- Non trucking liability if you will also lease onto another carrier. It covers you when you drive with no load
- Workers compensation, or occupational accident coverage, for the drivers
What underwriters ask a new venture
- Your driving experience, and any experience running a truck
- CDL history and driving records for every driver. See what underwriters look for on a driver list.
- Whether you have run under someone else's authority before
- How much you can put down, because new ventures often require a larger deposit
Experience is the single biggest factor. An owner with ten years of driving and a clean record gets a very different quote from someone with none, on the same truck.
The first two years
Expect the highest rates at the start. They improve at the first and second renewal with clean loss runs and no gaps in coverage. Do not shop by price alone in year one. A low priced policy from a carrier that leaves the market puts you looking for coverage mid year with a lapse on your record. See why new authority costs more.
Keep it in force
A lapse revokes your authority and creates the most expensive problem in this business. Set up automatic payment before the first load.
We set up new trucking operations regularly
Talk to us before you buy the truck and we will price it first. Use the commercial quote form on this page, or call our McAllen office at (956) 687 3334. Se habla español.
Common follow-up questions
How much should I budget for insurance in year one?
It varies widely by radius, what you haul and your experience. It is often the largest fixed cost after the truck payment. Get a real quote before you commit to equipment.
Can I get authority without insurance?
You can apply, but the authority will not go active until the insurance filing is accepted.
Is occupational accident coverage the same as workers compensation?
No. It is a different product with set benefits and limits. Which one fits depends on how your business is set up, and it is worth a conversation before you hire.
Commercial auto quote. Eight quick questions, then a licensed agent in McAllen calls you with the number.
What do you drive for work?
Pick the closest one. Your agent will sort out the details.
How many trucks?
Count every vehicle the business uses, including one you own personally.
What is the work?
Welder, landscaper, produce hauling, deliveries. A few words is enough.
Does a customer or general contractor need a certificate from you?
Many contracts ask for a one million dollar limit. If you have the requirement in writing, keep it handy for the call.
Do you have a USDOT number?
Needed for crossing state lines in a truck over 10,000 pounds. Not sure is a fine answer.
Who are we quoting?
So your agent knows who they are calling.
Where should we call you?
One call with your quote. No robocalls, no list selling.
Want a copy by email?
Optional. It means you have the numbers in writing after the call.
By pressing “Get my quote” you agree a licensed McAllen Insurance Group agent may contact you by phone, text or email at the details you provide, including by automated dialing. Consent is not required to buy. This is a request for a quote, not an application, and not an offer of coverage.
Getting your request to an agent
We have your request
An agent will call you with the quote. Have your registration and any contract requirements nearby. If you would rather not wait, call us now.
Call (956) 687 3334Monday to Friday, 9 AM to 6 PM. Se habla español.
Read next
Do I need commercial auto insurance?
Commercial Auto · 4 min read
Gerino Alejos
Licensed insurance agent · License 3128710 · NPN 18243381
Owner of McAllen Insurance Group, an independent agency on North 10th Street in McAllen. Works with clients across Hidalgo, Cameron and Starr counties on Medicare, Marketplace health, life and auto coverage. Se habla español.