New Trucking Authority Insurance in California and Texas: Filings, Limits and What to Have Ready

Most new ventures lose time in the same place: the truck is bought, the authority application is in, and the policy that gets bound doesn't file what FMCSA or the state actually needs. Here is the full checklist we walk new owner-operators through before they haul their first load.

What insurance filings does FMCSA need to activate my MC authority?

FMCSA won't activate for-hire operating authority until two things post to your record:

• BMC-91 or BMC-91X. This is your insurance company's electronic filing that proves you carry at least the federal minimum liability. You don't file it yourself. The carrier that writes your policy does, and not every policy includes it, so ask before you bind.
• BOC-3. This names a process agent in each state where you operate, so legal papers can be served on you. It's filed by a process agent company, not your insurer.

If you move household goods, FMCSA also needs a BMC-34 cargo filing. Your liability policy also carries the MCS-90 endorsement, which is what makes it satisfy federal financial responsibility rules.

Timing matters. According to FMCSA, if these filings aren't in within 20 days of your application being published in the FMCSA Register, you'll get a notice that the application will be dismissed unless you comply within 60 more days. See FMCSA's insurance filing requirements.

How much liability insurance do I need for a new authority?

Those are the legal floors, not what the market asks for. Many freight brokers and shippers want to see $1,000,000 in auto liability and $100,000 in motor truck cargo on your certificate before they'll tender a load. We quote to what your customers require, not only to what FMCSA requires.

What do I need to haul inside California?

California has its own rules for intrastate hauling. The California DMV requires a Motor Carrier Permit (MCP) if you're paid to transport property in any vehicle, or if you operate a commercial vehicle with a GVWR of 10,001 lbs or more, haul hazardous materials, or run combinations longer than 40 feet.

• Your insurer files proof of coverage with the DMV on a Certificate of Insurance (MC 65 M).
• Required liability ranges from $300,000 to $5,000,000 depending on your vehicles and what you haul.
• You'll also need a CA number from the California Highway Patrol.

California DMV: Motor Carrier Permits.

What do I need to haul inside Texas?

In Texas, you need a TxDMV number if you operate a commercial vehicle over 26,000 lbs, haul placarded hazmat, or move household goods for pay, among other cases. Your insurer files a Form E with TxDMV as proof of liability.

• Minimum liability for most carriers over 26,000 lbs: $500,000.
• Household goods movers: $300,000. Hazmat: $1,000,000 to $5,000,000.

TxDMV: TxDMV number requirements.

Which coverages does a new venture actually need?

• Primary auto liability: the coverage FMCSA and the states require. It pays for injuries and damage you cause to others.
• Motor truck cargo: pays for the freight you're hauling if it's damaged or stolen. Brokers usually require it.
• Physical damage: covers your own truck and trailer. Your lender will require it if the truck is financed.
• Non-trucking liability (bobtail): for leased-on owner-operators when driving outside of dispatch.
• Trailer interchange and general liability: often required by specific contracts and customers.

A real example

A new owner-operator in Fontana buys a used semi to haul dry van freight across state lines, and also wants to take California-only loads. Here's what that looks like:

• Federal: at least $750,000 liability, with a BMC-91X filed and MCS-90 endorsement, plus a BOC-3.
• California: an MCP, with the insurer filing the MC 65 M with the DMV.
• Customers: brokers ask for $1,000,000 liability and $100,000 cargo.
• Lender: physical damage on the truck.

One policy can do all of this, but only if it's set up right the first time. That's the part we handle.

What should I have ready before I call?

• USDOT and MC numbers (or your application status)
• CDL for every driver, with years of experience
• VINs, years and values of trucks and trailers
• What you haul, and how far (local, regional or long haul)
• Garaging address and any prior insurance or loss history