Should I get my MC and Authority or not???
 

Here is the deal, I have my IFTA, Tags, and Insurance to haul logs, and I can get my MC and Authority and when logs are slow I can pick up loads flatbedding (if they have extra) for a company I used to work for prior to becoming an O/O in 06. Insurance now is $3800.00 per year, and it would go up to $5800.00 to get the necessary insurance.

Cost to get my authority is around $500.00! Wonder how hard it would be for me to do it myself or worth paying to get it done.

I just wonder if it would justify the extra 2000.00 for this. I don't have a Trailer for the Flatbed work, would use theirs with insurance on it. The Flatbed Company stay busy most of the time, but they do hit slow periods as well.

I pull off a woodyard now and business has been steady for the past 6 months, but summer is coming and it can get slow if it stays dry for a long period of time.

It only costs $300 to get your authority if you do it yourself. The paperwork is pretty simple. All you need to do is fill in the blanks for your business. You can do it all online. There are services that will do the filing for you for a fee. Personally, I don't see the need to pay for something that I could do myself. It takes a few weeks to get your authority after all the paperwork is filed. I don't understand why you are currently paying $3,800 for insurance unless you are running your own authority. It only takes a few more loads to pay for the additional insurance costs. If you are paying for your base plates, doing your own IFTA and paying that much in insurance there isn't much more you would need to do running your own authority. At least when you run your authority you can keep all the money rather than giving part of it to another carrier.

Most segments of trucking have a slow time of year. With flats it seems to be more in the winter months. December through February have usually be a slower time of year for me.

You will need three things if you want to run your authority. Insurance, authority and registered agents. If you are a member of OOIDA they will act as your registered agents at no charge. You will need to have minimum coverage of $1,000,000 in auto liability and $100,000 cargo to haul freight for most brokers and shippers. Even at $5,800 the insurance is not all that high, especially for a new carrier. I would check around to see if you could get a better rate. I was told not long ago that Alabama tended to have higher rates than Tennessee. I don't recall the reasoning. Rates are determined by where you run, what you haul, credit score and experience in this business.

Have insurance with Progressive, don't have my own authority, but I do believe Insurance is higher in AL, as another guy has insurance with Progressive and had 1 accident and 1 ticket and His insurance is $5800.00.

Just didnt know how hard it would be to get all the paperwork done, and thought it might be worth the extra 200 to let OOIDA do the paperwork since I am gone for 12 to 14 hours a day now with work picking up.

I got a quote from OOIDA and Progressive and both of them are the same $5800.00 per year. Will do some calling and check for other rates from different companies and the one you pm me with. Any advice and or suggestions GMAN would be greatly appreciated.

I love doing what I am doing right now, it averages out to $1.50 to $1.70 per mile both ways but the flatbed could pan out to be better than that. I guess I don't like change, but it is with a company that I use to work for so that is much better.

You can do the filing online anytime day or night seven days a week. Some people are more comfortable having someone else to all the paperwork. You could try it and if you find that it isn't to your liking you can always have OOIDA or someone else do it for you. If you wish you can go to the fmcsa website and take a look at the form. I believe that you need your insurance in place before they will accept your application. The only problem with OOIDA's insurance is that not all brokers will accept it. Landstar and a few others won't accept OOIDA's insurance because they are not A rated. I have known a few owners who still use them.

The rates you are currently getting are not bad for what is going on in the marketplace and especially leased to another carrier. I have seen some increase in rates lately.

If you have any questions about filling out the form for authority I will be glad to try and answer them for you. Filling out the form seems much more complicated until you get down to completing the forms.

Gman who do you recommend for Insurance?

I think I remember someone sugesting for bobtail liability and colision to go progresive but they don't do load insuranse, if I remember, lol. some one corect me if I'm wrong since I'm not an O/O yet, just still lurking on the O/O boards

I got my collision from OOIDA for $400 cheaper then Progressive.

Filing for Authority is not as hard as it looks. If you make a mistake the system will tell you. Even of you have someone do it you need to give them all the info on the form. So you're basically having them type it in for you. I've heard of people that also went to their local DOT office and they helped them do it right there.

Progressive does have the cargo insurance, I called and spoke with them last week, and they have everything in Insurance I would need. Going to make a few more calls and then make my decision on who to go with.

Thanks GMAN for the offer of help in filling out the form.

I got better rates from Northland. I would suggest checking around. If you find a good insurance broker or agent they should be able to shop your business around for the best rate.

I side with Gman on doing the authority application yourself. I believe one needs to understand every aspect of their operation and the online process is very simple. Also, don't forget you will have to subscribe to a drug test consortium. DO NOT forget that one! Under the new FMCSA mandates that would be an automatic fail. Keep in mind you will receive an audit within the first 18 months, but will probably be a lot sooner. It's better that way, less paperwork to bring to the audit. Make sure you go through the FMCSA website and prepare against the critical fail criteria.