USDOT MCS-90 Insurance Filings and Texas DMV State Insurance Available. New or Experienced USDOT.
There are three different parts that make up what is called trucking insurance. We will explain each one of these in details below.
The three main parts to a Texas commercial truck insurance policy:
However, depending on what type of business you are operating under or what type of commodities you will be hauling, there maybe me additional coverages you require in order to fully protect your business from taking the financial brunt of the cost of damages in the event of a lawsuit.
Additional coverage you can add to your trucking insurance policy are:
Commercial Truck Insurance will cover you while you are driving your truck for business purposes, such as when you are hauling a load from one destination to another. This will cover you in the event of a lawsuit arising from bodily injury or property damage to others only.
Commercial truck Insurance is essentially Primary Commercial Auto Liability which will not cover any damage that ISN’T done to others. So, if you were to get into an accident and your vehicle needs to be repaired or replaced, you would NOT be covered.
For instance, If someone were to be injured or have their property damaged by your commodities coming loose and falling onto their property, you would not be covered.
The only thing that will be covered by this coverage alone, is bodily injury and property damage done to other while the vehicle is being operated for business purposes by someone who is covered on the policy.
It’s typically thought that a business with a company vehicle needs commercial auto insurance and typically that is correct, unless you have a trucking business. A commercial auto policy covers you while you are using a company vehicle for work errands and will not cover your semi or heavy truck while you are transporting a large weight load from one place to another. In order to maintain coverage while on the road and while hauling a large amount of commodities, you’ll need to make sure you have a Commercial Truck Insurance policy in place.
While both policies cover you in the event of an accident resulting in bodily injury or property damage to others and while both policies are similar, their coverages are intended for a very different type of business.
Anyone that owns and/or operates a commercial vehicle, used to transport commodities for-hire, will need to obtain a commercial trucking policy. Having at least Primary Liability Coverage on your commercial truck insurance policy is the bare minimum required in order to operate any commercial vehicle used to transport commodities for hire.
Estimating the cost of commercial truck insurance can be pretty difficult, if not impossible, without knowing a motor carrier’s basic business information. The price for commercial truck insurance can vary greatly depending on a number of factors.
Here are the factors insurance companies look at when giving you a rate for trucking insurance:
When you have a trucking company you need to get those wheels rolling. Spending time going back and forth with your insurance agent trying to make sure they have all the correct information to quote your business is the difference between you being on the road and making money and you waiting at home wasting money.
A good agent will do their due diligence and make sure to follow up with you to get the information the insurance companies require. However, sometimes they have a hard time reaching you if you have other appointments, you have a busy schedule, or even if you just forgot to charge your cell phone. Either way, if the agent doesn’t have all the required information, they can’t do much but wait until then next time you speak. To avoid wasting time on a game of phone tag, having the required information up front will allow the agent to get you the best rate as fast as possible.
Here are the basic information your insurance agent will require.
Make sure to have this information ready when shopping around for insurance.
You’ll also want to make sure you have the correct documents to make things go as smoothly and as quickly as possible.
Here are some documents you’ll want to have available if you can acquire these ahead of time:
$9,000
$13,500
$6,000
$9,500
Texas Trucking Association (previously Texas Motor Transportation Association) is a trade association based in Texas.
TXTA is a trade association dedicated to improving the effectiveness of its members by pushing strong public policies,
offering superior education and training, and promoting a safe, dependable,
and cost-effective motor transportation system to better serve the people of Texas.
The Texas Department of Transportation is a government organization of the state of Texas, in the United States of America. Though the agency’s public face is most commonly linked with the development and maintenance of the state’s massive state highway system, it also oversees the state’s aviation, rail, and public transit networks.
The Texas Department of Motor Vehicles (TxDMV) is a Texas state department based in Austin.
The agency is in charge of vehicle registration and titling, as well as authorizing motor carrier operating powers and
providing funds to law enforcement organizations in order to raise public awareness about car theft and reduce it.
The Texas Department of Insurance’s objective is to safeguard insurance consumers by enforcing fair and diligent regulation of the insurance sector. Promoting a healthy and competitive market by providing actionable information
Local truckers and new businesses in Texas are required by law to maintain a specified amount of liability insurance.
The type of freight you haul and where you haul it influence how much you require.
If your vehicle exceeds GVW and you don’t cross state boundaries,
you must obtain a TXDMV number and maintain a minimum amount of liability insurance:
Your insurance agent must submit specific filings to both Texas and the FMCSA. These filings should be handled by your insurance agent or insurance provider. These documents demonstrate to the government that you have met all of your DOT truck insurance obligations. Before you may get your authority, you must submit them. The following are some examples of frequent forms:
MCS-90 Endorsement Coverage is proof from the motor carrier’s insurance provider that restitution will be paid in the event of an accident. The MCS-90 was created with the general public in mind. It provides no additional insurances or coverages to motor carriers; instead, it serves as an assurance to the government and the general public that you will accept legal obligation if necessary. That’s all there is to it.
MCS-90 is commonly misunderstood as a sort of insurance by motor carriers. It’s not the case. The MCS 90 endorsement definition says nothing about who pays for damages in the end. The only thing it says is that damages will be compensated. If you spill 2,000 gallons of oil and don’t have environmental liability insurance, the insurance company will cover the clean-up costs, but they’ll turn around and charge you again.
Towing companies must file a Form T with the state of Texas. It assures the state that you have enough liability insurance to cover any mishaps that may occur as a result of operating tow trucks. To obtain this form, you must have a Vehicle Storage Facility (VSF) number.
A Form E filing verifies that your liability insurance meets the financial responsibility requirements of the state.
Form E is filed to the intrastate trucking department in your company’s home state.
A Form H filing, which is submitted to the state department of your business’s home state,
guarantees your state that you have adequate Cargo Liability insurance.
Only Specific states require this filing.
Check out our video all about Texas Trucking Here
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