AuthorityRename

Getting Your Own Authority

Before you spend the necessary funds to apply for motor carrier authority, you need to research the following:

Who will you haul for? How much and when will they pay you? Is it every 30 days or more after you deliver a load that you are paid? You will need to have a at least 2 months operating expenses available in addition to your normal living expenses when you get started.
You should get quotes from 2 or 3 good trucking insurance agents. This will be your single largest expense to start your own operation. You will need 1 million dollars in liability and enough cargo insurance to cover what you haul. Talk with potential customers about cargo insurance so you can get accurate quotes.
You need to know what the DOT requirements are before operating your own company. A recent rule requires that all new authority holders be given a compliance review within 180 days of receiving their rights. This is known as the New Entrant Registration Program (safety audit).
Ensure you have a simple but accurate system to check that each load you haul is billed and paid within the agreed upon time frame.
You should set up a separate business account and only pay operating expenses and yourself from this account.
It's important that you know what it costs you to operate your truck or tractor/trailer on a mileage basis. If you do not know this you cannot price your services on a profitable basis.
You need to determine your annual costs such as tag, heavy vehicle use tax, ad valorem tax, permits, tires, and maintenance. Break this down to a per mile basis and always leave this much in the business account until required.

When you have researched and/or set up these items and have your answers, you can then decide if you need to get your own authority. And then contact us and we'll get you on your way!

Briggamite IRP Services, LLC

Getting Your Own Authority