What "new authority" means to an insurance company
New authority means you've applied for (or just received) your own MC/USDOT operating authority instead of running under someone else's. To an underwriter, it means something specific: no loss history under your own name. No matter how many safe years you drove for a carrier, your new entity has no track record — and that's what drives your first-year pricing.
What FMCSA actually requires
Your authority does not activate until proof of insurance is filed with FMCSA by your insurer. The pieces:
- Public liability filing (Form BMC-91 or BMC-91X). Your insurer files this electronically. It proves you carry the federal minimum liability.
- Federal minimum limits. For most general freight it's $750,000. Certain hazardous materials require $1,000,000 or $5,000,000 depending on what's hauled.
- BOC-3 process agent filing. Designates an agent in each state to receive legal documents. Filed separately from insurance.
The number that actually matters: the federal floor is $750,000, but almost every broker and shipper requires $1,000,000 in auto liability before they'll give you a load. Insure to the market, not just the minimum — otherwise you're legal but unbookable.
What brokers and shippers require on top
- $1,000,000 auto liability — effectively the industry standard.
- $100,000 motor truck cargo — not federally required for most general freight, but nearly universal on load boards. More on cargo coverage →
- General liability — often $1,000,000, required for warehouse and dock access.
- Physical damage — not legally required, but your lender will require it if the truck is financed.
Why the first year costs what it does
New-authority premiums are high for reasons that have nothing to do with your driving:
- No loss runs. Underwriters price uncertainty. You have no history to price against.
- New ventures fail often. Statistically, a large share of new authorities don't survive year one, and carriers price that in.
- Fewer markets will quote you. Many carriers won't write authority under 12–24 months old, so you're shopping a smaller pool.
What moves your price within that reality: driver experience and MVRs, CDL years, age of the equipment, radius of operation, commodities hauled, and how much you're willing to carry as a deductible.
How to bring the number down
- Document your experience. Years driving under a previous carrier still matter — bring MVRs and any loss runs you can get.
- Be realistic about radius and commodities. Long-haul and high-theft commodities cost more. Quote what you actually run.
- Consider your deductible honestly. A higher physical-damage deductible lowers premium — but only take on what you could actually pay tomorrow.
- Renew clean. The single biggest lever is 12 months of clean operating history. Year two is usually a meaningfully different conversation.
What to have ready when you call
- USDOT and MC number (or your application)
- Driver list with CDL numbers and dates of birth
- Truck and trailer info — year, make, VIN, and stated value
- Radius of operation and the commodities you plan to haul
- Any prior loss runs or experience letters
Common questions
How much liability insurance does FMCSA require for new authority?
For most general freight the federal minimum is $750,000 in public liability. Certain hazardous materials require $1,000,000 or $5,000,000. In practice most brokers and shippers require $1,000,000 regardless of the federal floor.
Do I need cargo insurance for my new authority?
FMCSA does not require cargo insurance for most general freight, but brokers and shippers almost always require at least $100,000 in motor truck cargo coverage before they will book you.
Why is new authority insurance so expensive?
Because your new entity has no loss history to price against, fewer carriers will write authority under 12 to 24 months old, and new ventures statistically carry more risk. Premiums typically improve after a clean first year.
Not sure what you need?
Tell us how you run and we'll shop it across our carriers — or just ask a question. No forms required.