What is "having your own authority"?

[zanico]

I'm still learning about this business. I hear a lot of people say they "have thier own authority". What exactly does that mean and how do you get it?

 

[greg334]

It is called an operating authority granted by the federal goverment so you can operate as an Interstate carrier.

I am leased to FedEx, I operate under their authority until I am no longer leased with them.

I am working on getting my own but that is a rather long story.

There are companies who do the papaer work for a price, or you can do it yourself. but the biggest obstical I ran into is Insurance - which I am told by many you have to have as soon as you apply or soon after, someone correct me.

 

[fastrod]

You will need your insurance up front. 300,000 for a van or 750,000 for 10,001 and up. I used Commercial insurance solutions in Akron Oh. real good co. I used permits plus to file for the authority. If you are filing for 10,000 lbs. and under make sure they do not issue you a dot number. You do not need one and it will mess up your authority filing.

 

[Broompilot]

This should sum it up


VERY EXPENSIVE, proabably $3-4K up front for insurance and than waiting up to 60 days to get paid for the first load you did?

= Very deep pockets.... Can you afford to pay for ALL expenses for up to 120 days until the cash flow begins to kick in?

 

[fastrod]

How about 300 to 400.00 dollars up front for a van. That would include cargo insurance too. Then you can factor your freight bills and have cash flow in a day or two. It is a fairly cheap and easy deal to do in a van.