DOT authority question. HELP !

[brucet84]

I applied for my dot & mc numbers a year or so ago to do some hotshot stuff. Due to cost of insurance I never activated the authority. I just spoke to FMSCA and they said I could reinstate the authority with an $80.00 reinstatement fee and proper insurance. They also said I should be using a Process agent. Several questions come to mind;
#1. Since I am now doing tractor/flatbed freight and not hotshot do I need different authority or just different insurance?
#2. Do I need a Process Agent ? What will it cost me ? Who do you recommend ?

I am not new to trucking [30 + yrs.] but I am new to having my own authority. I will be looking for loads on the internet. Any advice will be GREATLY appreciated. Thanks

[brucet84]

Forgot to ask. What insurance company would you recommend? Thanks again !

[GMAN]

There are only two types of authority, contract and common. The feds no longer make a distinction between the two, so I understand. Common is the most prevalent. It doesn't make any difference whether you do hot shot or class 8 trucks, you have the same authority. Most brokers and shippers require $1MM liability and $100M cargo. Rates on insurance can vary widely. I have been getting better rates from Northland, but the last couple of years they have hit me with major increases and I have had no claims, accidents or tickets and have an excellent safety record. I decided to not renew with them this year. Northland seems to have better rates for the single owner operator. In my case, I have drivers. I have found another company that I may go with who is much less expensive. A friend of mine received a discount from Northland this year. Where you live and run has an impact on your rates. I have spoken to some who have gotten better rates with Great West, although they have always quoted me a higher rate. I suggest getting with one or more brokers and have them shop it for you. I had one broker that told me that there are 18-25 commercial insurance companies who write this type of insurance. Most brokers only represent a few insurance companies. It pays to shop around, even with brokers.

You will need process agents for every state in which you do business. There are services who will do this for an annual fee. OOIDA offers this service at no charge to members.

[brucet84]

I appreciate the info. Is there someone that I can contact that might help with permitting , fuel tax reports , ect ? Or should that be done with someone local. [ central Florida ]

Thanks again.

[GMAN]

There are services that will get your authority and permits for a fee. OOIDA will handle as much or little of that as you want but will also charge a fee. Their charges are usually less than outside companies. You will need to be a member for them to work with you. They can also act as your process agent at not charge as long as you are a member. At one time I think they did the IFTA or quarterly tax filings. I don't think they currently do that, but there are services who do. Expect to pay around $35/month or so. I think the least expensive I have seen is $25/month. There is software that is designed for this industry and will do the calculations for you. Easy Trucking Software, Truckers Helper are a couple. Truck n Pro has software that will do your totals but you will need to do the actual calculations. Most trucking specific software will cost from $125-495. For a single truck operation you should find what you need for less than $200. If you keep your records current you should be able to file the forms in about 1-2 hours. I have been a member of OOIDA for many years. They are a good resource for drivers, owner operators and small fleets. If you join during certain times of the year their usual $45 annual membership is $25.

[brucet84]

Thanks again, Gman. I will check out the companies you mentioned.

[GMAN]

You are welcome, brucet84. One other thing about these software companies. Most of them have either a trial period or a demo that you can check out on line. If you need additional software leads let me know. If I remember correctly the web addresses for those companies I mentioned are as follows: Trucknpro (www.foglinesoftware.com); Truckers Helper (www.truckershelper.com); Easy Trucking (www.easytrucking.com); and OOIDA (www.ooida.com).

[brucet84]

I have found some regular stuff comming back to Florida from the midwest. I think I can do O.K. with the loadboards going out. At least till I can nail down something better. Right now I am working on the insurance to start my authority. Thanx again for the help !

[GMAN]

Make sure to check around with several insurance brokers. Rates can vary widely.

[Scottt]

I pay $400 a month for Liability and Cargo from this company Cottingham & Butler Truck Insurance Group ? Ahead of the Curve and $123 a month for Collision, Comp, Bobtail from Progressive.

[brucet84]

Thanks guys . I think I got a great deal on insurance with a local agent. It is with Northland. Same company and coverages I was quoted from a broker in Georgia. Difference is, the Florida broker got same insurance for $1,600 less.

As a side note , I e-mailed a company named " Evilsizor" yesterday looking for help in getting my IFTA,BOC-3,fuel tax help,ect. Haven't heard from them. Is it standard to wait more than a day to get e-mail response ?

Hope to have all authority,insurance ect by end of next week. I have been sitting too long already. Need to get to work and start making instead of spending !

Thanks again ! Bruce

[GMAN]

Bruce, sometimes it is how the broker structures the quote that can make a difference in your premium. I am surprised that Northland would give a different quote. I had one broker who told me that Northland would not quote to another broker once they had quoted for one for the same carrier or owner operator. I found out with Northland that they have several underwriters who will put a quote together. Your rate can differ according to which underwriter you get. I think that Northland can be a good choice for a single truck operation that the owner drives himself. If you have trucks that you must put drivers in then it may not be the best choice. One criteria that Northland uses is driver retention. If you have driver turnover then your premiums will likely go up with Northland. That is the company that I used for several years with no claims or tickets. They hit me with two rate increases with the only reason for the hike given is driver turnover. If you have drivers then you have turnover. I have received a couple of quotes from different insurance companies who have given me a lower rate than Northland.

[GMAN]

As a side note , I e-mailed a company named " Evilsizor" yesterday looking for help in getting my IFTA,BOC-3,fuel tax help,ect. Haven't heard from them. Is it standard to wait more than a day to get e-mail response ?

It depends on how busy people are as to how long it can take to get back with you. You can do the IFTA yourself. All you need do is fill out a form. There should be no charge unless you use a service.