i would think for insurance you would really talk to DOT and get the real deal, you are hauling for $$ that changes the entire situation. what did you do before?

here in tejas, my bus is 32k gvwr/42k gcvwr, so i got a non commercial Class B license to protect me insurance wise, neat little driving test and boom insurance rates dropped abit as well

 

The OP’s insurance rates are not going to go down…..not a chance in Hell. To get insurance that meets the requirements to submit a BMC-91, is thousands of dollars more, per year, than to insure the same vehicle privately. His minimum liability has to be at least $750,000 and most customers won’t do business until you have $1,000,000+ coverage.

For example, my truck (F-350) and trailer (Diamond C 15k dump) costs me around $1,500, per year with $100,000/$300,000 liability limits and a $500 deductible on full coverage at replacement costs. It is a commercial policy, which has some other coverages not generally carried by motorists. I only get this rate because I’m intrastate and not hauling other people’s property. The lowest quote I got, to go interstate as a motor carrier was around $6,000 a year with a much higher than $500 deductible. Also, this was with a DOT number that was a couple of years old and I was 33 years old, at the time, with a couple of years on my CDL and a clean driving record. If you are starting new, have issues on record, or are young, rates are higher.

 

An LLC may be best, but it may nit be. I would recommend he speak with his attorney and his accountant. They should be able to advise him of the best way, fir his specific situation. In my case, am LLC wasn’t advised. I visit my accountant a couple of times a year and touch base with my attorney (for my business) at least every 18-24 months, just to see if changes are in my best interest.


I do agree with you, he needs a business account. In my case, I waited and it worked out okay. In hindsight, I should have started the business account sooner. A lot of what’s best, here, depends on how much business they plan to do and how much the same tools (vehicles) are going to be used for the “farm” and “personal” use. How the business entity and farm are set up will determine how money should be handled.

I’m a sole proprietor. When I first started my business, it was very small and I didn’t move much money. The first year I had to go around and catalog all of my tools we were writing off, for the business. After that, I keep a business spreadsheet (and receipts). I also use percentages of my house and utility bills, that are written off, for business. As my business has grown, I’ve developed a larger separation between what is for business and personal use.

 

i was not implying his rates go up or down. simply my insurance company gave me a break for gettign the class b license to comply with state law, most in our state never get the license and are standing a chance of NO BUENO if they cause a wreck or in one. I mean he should check with his carrier to get the skinny and follow dot requirements for his state
now it sounds like he needs the cdl and should go LLC or other. IMO moving some ones horses or property for hire is a HUGE liability both financially and personally so cover all the bases as to not be in the poor house if something happens

 

Yeah. I’ve got an LLC setup for the farm and commercial insurance for the truck. So all covered there.

just trying to avoid a CDL if possible. Finally got through to someone at the trailer mfg. said the owner says he doesn’t want to de-rate because they don’t want to be liable for accidents. I said that doesn’t make sense because you are rating it lower than the axles.

then, I asked if they had 6k axles. Yeah he said, but they rate them at 5200 for a 10400 gvwr rating.

I was thinking “wtf that’s exactly what im asking you to do for the 7k axles”. Thankfully this guy understood and is going to talk with the boss.

horse trailers, I tell ya.

 

Understood.

In a dozen years of LE, I don’t remember ever seeing the proper non-commercial class A or B, for vehicles that “require” it.

 

Make sure you have “commercial motor carrier insurance”, not just “commercial insurance”. They aren’t the same thing.

A CDL only adds a few things out of the list I provided. Most of that is required at 10,001 pounds (registered weight, combined GVWR’s, and/or actual weight), if you’re hauling commercial, over State lines.

 

What is the difference? Carrier insurance because you need to insure the load as well?

 

yes, you have to insure the load. Not sure of horses but most is at 750K for the load.

I think places like car max makes their carries carry 1 mil.

 

senix is correct, for the most part.

To go a little more in-depth, it’s a two-part reason. The rules are different for liability minimums, between regular vehicles and interstate commercial vehicles. The $750,000 minimum, for interstate commercial motor carriers is liability against property and personal injury, not cargo coverage. Most companies want a million dollar liability policy, or they won’t hire that motor carrier company. Compare this to the Kansas minimum liability coverage of $25,000, for a passenger car.

Cargo coverage is not required, by FMSCA (that I can find), except, for anyone carrying “household goods”. However, when you get a $750,000+ intrastate policy that meets the requirements to complete a BMC-91, the policy will usually include or have an option to include a certain amount of cargo insurance. After all, you wouldn’t get the policy, if you weren’t hauling cargo. What most guys I know do is carry a normal amount of cargo insurance and if they get a load that’s worth more than their regular coverage, they call their agent and pay a few dollars for the extra coverage. After the run is over, they let their agent know and that part is removed.

For the OP, let’s say the horses he hauls usually are valued at $5,000. Just made up numbers, for an example. It’s likely a $750,000 policy is going to be enough, for his customers and meet Federal requirements. Let’s say that policy has a $10,000 cargo coverage, so long as it’s not haz-mat, passengers, or household goods (which are all in different categories than general cargo). Day in and day out, he runs without issue. One day, he is asked to transport two horses valued at a combined amount of $25,000. He decides not to up his cargo coverage. He is involved in a collision and both horses die. The Feds don’t care, he had the minimum coverage required to operate. The customer gets a check for the $10,000 the OP had coverage for. The remaining $15,000 value lost is a civil issue, between the customer and the OP. Therefore, smart customers will make sure the cargo insurance meets the value they place on the hauled cargo. The OP would have been ahead giving his agent a call and informing him of the necessary change in cargo value, for a given time period.


This is my understanding. Also worth a note: some animals, including some horses for certain uses, are exempt from some regulations (such as needing interstate Authority), but the insurance requirements aren’t exempted. The OP will want to thoroughly check into this, if he’s going to try to fly under any of the exemptions.


https://www.fmcsa.dot.gov/registrati...g-requirements

 

Late to the show. Because I rarely show up here. Anyway, as a for-hire operation you will need at least $750,000 of liability insurance and a MCS-90 endorsement on the policy.

When transporting machinery, or some hazmats it jumps to $1,000,000 liability insurance. If there is large amounts to ones hazmats that make a big boom the liability jumps to $5,000,000.

The only time you need cargo insurance is for movement out household good. That minimum for cargo insurance is $5,000.

Also, for new CDL holders as of February 7, 2022 brand new CDL holders, or those that are upgrading CDLs have to go do entry level driver training with someone who is registered as a training provider. It can be a company, individual, school that is the provider. It can be public or private training. There is a list of stipulations that the trainer needs to meet. https://tpr.fmcsa.dot.gov

Also, if you are wanting to start off in transporting interstate commerce this is a good resource that answers questions and offers a uniform same answer no matter the state: https://csa.fmcsa.dot.gov/safetyplanner/

 

And to think, when I turned 18, I walked into the DMV and said I wanted a chauffer's license (no CDL at that time), took the written test, and got it on the spot. Years later was grandfathered into CDL. Took every test offered, including bus/passenger, got license on the spot. Still no driving test.

Just renewed last year. Dropped HazMat years ago, also dropped bus last year. Got license on the spot. New guy at work wanted upgrade from B to A. I had to work with him on the trailer part to get his skills up, and he had to pay an outside tester to approve him with a knowledge/skills test, then he had to go to the patrol station to get his license. More and more red tape, and more and more money spread into more hands.

 

I have everything but bus / passenger and because I have a medical restriction I cant drive out of state and that is fine with me.
Because of that every year I have to go for a fancy eye test, just got the letter it due, and send it into the DMV and hope I can get a waiver.
If no wavier no CDL, no job. I have had my CDL since 1983 but only really used it the last 6 years.
I only have another 3 years before I can retire but if I cant get the wavier that will be it.
Dave ----

 

I haven't driven full time in a few years, but I almost always had a side job driving for different people. Those CDLs saved my bacon many a time when money got tight.. There were quite a few years driving was my primary job, and quite a few it wasn't, but still drove some.

Right now I'm a part time driver, working mostly during warm weather. Some weeks and months it doesn't seem like part-time though, with some the weeks hours. Still, I'm enjoying driving now as much as when I first started and thought I was Sonny Pruitt or Snowman. Am thinking about retirement. I'm already on Social Security, and these old bones are tired.

I'm driving a dump truck hauling whatever will fit, and a tractor-trailer detachable lowboy moving heavy equipment.