What is the Best Type of Trucking Authority to Get?

Strong Tie Insurance September 20, 2021 Our Blog

One of the biggest questions trucking business owners face is choosing the best type of trucking authority to get and cheap semi truck insurance to go along with it.

If you’ve decided to venture into your own trucking business, you have to get your own trucking authority. And if you’ve done some research, you’ll realize that there are more than a handful of trucking authorities you can get from the Federal Motor Carrier Safety Administration (FMCSA).

When choosing the best type of trucking authority to get, the answer is simple. The best type is the one that fits your business’s needs.

Each type of trucking authority is suited for certain uses. By now, you should already have your business plan and know how your operations will work. With this information, you can read up on the different types of trucking authorities below so you can identify which trucking authority is the best one for you to get. 

Different Types of Trucking Authorities 

With so many vehicle operating authorities available in FMCSA, it becomes confusing to determine which one you should apply for.

To help you decide, we’ve listed down those most relevant to trucking businesses. Note that for each type of trucking authority, FMCSA differentiates between general cargo and household goods.

Motor Carrier 

This type of trucking authority is applicable to those who will be hauling regulated commodities as a business. There are two types of motor carrier trucking authorities, one is for property which encompasses all commodities but household goods (HHG), another is for household goods.

To apply, check out the OP-1 Instructions here.

Motor Carrier of Property (Except Household Goods)

The Motor Carrier authority for non-household goods is for those who will haul all general cargo, excluding household goods.

For application, you must file proof of public liability. For this type of trucking authority, cargo insurance is not required.

Motor Carrier of Household Goods (Moving Companies)

The Motor Carrier authority for household goods applies to moving companies who will be hauling the said items or personal belongings used in the home for a fee. For this type of trucking authority, both primary liability and cargo are necessary.

Broker

Not all trucking businesses are motor carriers. Some of them work with motor carriers, linking them to clients whose freight they will be hauling. These businesses that arrange transportation of federal-regulated commodities that belong to others in exchange for payment need a broker type of operating authority.

There are two types of broker trucking authorities, one for property which encompasses all types of cargo but household items, and another for household goods. To apply, check out OP-1 instructions here. 

Broker of Property (Except Household Goods)

This type of trucking authority applies to any individual or business entity that conducts business by offering a service they arrange for the transportation of all goods except household goods by enlisting the services of an authorized motor carrier.

By linking motor carriers and clients who need hauling services, brokers never hold onto nor assume responsibility for the properties being transported. Because of this, the insurance required is only for primary liability.

Broker of Household Goods

This type of trucking authority is for any individual or business entity that offers the service of linking household goods owners to motor carriers in order to haul or transport household goods.

Additionally, brokers need this authority if the motor carrier they are enlisting provides services such as estimates, inventory, packing and unpacking, and loading and unloading of household goods. Household goods pertain to any household or personal items that are used at home. 

United States-based Enterprise Carrier of International Cargo

This type of trucking authority is needed by trucking businesses that transport all commodities except household goods internationally, this means the goods are coming from or arriving at a foreign country.

Additionally, such companies must be based in the United States and have over 55% of the company be owned by a Mexican or resident alien.

United States-based Enterprise Carrier of International Household Goods

This type of trucking authority is required for trucking businesses that transport household goods either into or out of the United States. Their company headquarters must be based in the United States but more than 55% of the company must be owned by a Mexican or resident alien.

Household goods pertain to any personal objects that will be used in a home, even if they are being transported to or from a store or factory, as long as they are being transported at the request of a homeowner who pays for the delivery, this trucking authority is needed.

Freight Forwarder Authority

As globalization makes it more popular to shop for goods in other countries, freight forwarding has become a growing niche in the trucking industry.

Freight Forwarder Authority is needed by businesses that will be arranging and shipping merchandise on behalf of another party.

Freight forwarders help you arrange to import and export goods. Some of the services freight forwarders provide include tracking of inland shipping, shipment preparation, warehousing, booking cargo space, and filing of insurance claims.  

Other Trucking Authorities

Besides the most commonly applied for operating authorities by trucking companies mentioned above, there are four more trucking authorities that may apply to you. 

  • Non-North America-Domiciled Motor Carriers
  • Mexico-based Carriers for Motor Carrier Authority to operate beyond U.S. municipalities and commercial zones on the U.S.-Mexico Border 
  • Mexican Certificate of Registration for Foreign Motor Carriers and Foreign Motor Private Carriers Under 49 U.S.C. 13902
  • Motor Passenger Carrier Authority

Obtain Commercial Truck Insurance and Semi Truck Insurance

One of the key requirements to activate your trucking authority is to have trucking insurance that fits into the FMCSA requirements for the trucking authority you applied for.

Most trucking businesses will need commercial truck insurance while for others, cheap semi truck insurance will suffice.

Whichever you need, we got you covered! Protecting trucking clients for over 20 years, Strong Tie Insurance will give you the protection best suited to your trucking business.

To get a free quote, contact us at Strong Tie Insurance today.