A new MC authority is the hardest account for an underwriter to price. You have no claims history and no CSA score, so carriers either charge a new-entrant premium or turn you down. This guide covers what the FMCSA actually requires, which carriers write policies for first-year authorities, what a realistic quote looks like, and how to avoid the filing mistakes that stall activation.
For a first-year, single-truck, for-hire authority hauling general dry van freight, expect $9,000 to $16,000 a year in primary liability, more if you add cargo and physical damage or haul a higher-risk commodity. Progressive Commercial, Great West Casualty, and National Indemnity (backed by Berkshire Hathaway) are the three carriers most consistently willing to write new authorities; OOIDA's program is worth quoting if you are a member. Whichever you pick, confirm the BMC-91 and MCS-90 are filed before you plan your first load; your authority stays inactive until they post.
Insurance underwriting runs on history. An established carrier hands over three years of loss runs, a CSA score, and a mileage count, and the underwriter prices the policy against that record. A brand new authority has none of it. The FMCSA granted the MC number days or weeks ago, there is no SAFER snapshot worth reading yet, and the underwriter is pricing pure uncertainty.
That uncertainty shows up in three ways. First, a new-entrant surcharge gets added to the base premium, often 20% to 40% higher than the same coverage would cost after year one with a clean record. Second, down payments run larger, since the insurer wants more skin in the game before extending credit to an unproven account. Third, some carriers simply will not write new authorities at all, regardless of price, which is why shopping matters more here than at any other point in the business.
None of this is designed to keep you off the road. It reflects how new-entrant claims data actually looks industrywide: first-year carriers have a higher accident and out-of-service rate than carriers with two or more years of experience, which is also the reasoning behind the FMCSA's own New Entrant Safety Assurance Program. See our new entrant safety audit guide for what that program checks in your first 18 months.
The FMCSA does not sell or issue insurance. It sets minimum liability limits under 49 CFR 387.9 and requires your insurer to file proof of coverage electronically before your authority can go active.
| Operation | Minimum Liability | Notes |
|---|---|---|
| General freight, for-hire, over 10,001 lbs | $750,000 | The standard minimum for most new authorities |
| Non-hazardous freight, under 10,001 lbs GVWR | $300,000 | Applies to smaller straight trucks and cargo vans |
| Household goods (interstate) | $750,000 + cargo | Cargo minimum: $5,000/vehicle, $10,000/occurrence |
| Oil, certain hazmat classes | $1,000,000 | Varies by hazard class and bulk vs. non-bulk transport |
| Division 1.1–1.3 explosives, Hazard Zone A materials | $5,000,000 | Highest federal tier, bulk transport of the most hazardous materials |
A BMC-91 is the form your insurer files to certify you carry the required liability limit under a single policy. A BMC-91X is the same certification when that limit is split across more than one insurance company. Neither form is something you file yourself; your insurance company or its registered electronic filer submits it directly to the FMCSA, as described on FMCSA's insurance forms FAQ.
The MCS-90 is different: it is an endorsement attached to your liability policy, not a form filed on its own. It guarantees that accident victims get paid up to the federal minimum even if something in your policy would otherwise exclude the claim. Ask your agent to confirm both the BMC-91(X) filing and the MCS-90 endorsement in writing before you count on an activation date. For state-level filings on top of the federal ones, see our UCR registration calculator.
Cargo insurance is not federally required for most carriers, household goods movers being the exception. Brokers, however, almost universally require it before they will book a load, typically $100,000 in cargo coverage on top of the federal liability minimum. Physical damage coverage is likewise not an FMCSA requirement, but any lender financing your truck will require it. Budget for all three even though only one is technically mandated by the FMCSA.
Not every commercial auto insurer wants new-authority business. The carriers below are the ones owner-operators and small fleets most consistently report success with in the first year. Quotes, appetite, and underwriting rules change by state and by month, so treat this as a shortlist to quote against, not a ranking to buy blind.
| Company | New Authority Friendly | Best For | Notes |
|---|---|---|---|
| Progressive Commercial | Yes | Owner-operators, general freight | One of the largest commercial auto writers in the US; broad agent network makes it easy to get a fast quote. |
| Great West Casualty | Yes | For-hire trucking specifically | Writes trucking exclusively rather than as one line among many; often more flexible on new-entrant underwriting. |
| National Indemnity (Berkshire Hathaway) | Yes | Higher-risk cargo, larger fleets | Backed by Berkshire Hathaway's balance sheet; frequently used for accounts other insurers decline. |
| OOIDA | Members only | Independent owner-operators | Program insurance available to OOIDA members; worth quoting alongside the open market if you already belong. |
| Sentry Insurance | Case by case | Established owner-operators | Broad trucking book, but typically prefers some operating history over a day-one authority. |
Whichever carrier you quote, ask three questions before you sign: does the policy include the MCS-90 endorsement, what is the down payment and monthly payment schedule, and how fast will they file the BMC-91 once bound. A cheap quote that files slowly costs you more in delayed revenue than a slightly higher quote that activates in 24 hours.
These are planning ranges built from typical new-authority quotes reported by owner-operators, not guaranteed prices. Your state, driving record, cargo, and equipment age all move the number.
| Coverage | Typical Annual Range | Required By |
|---|---|---|
| Primary liability ($750K) | $9,000 – $16,000 | FMCSA |
| Cargo insurance ($100K) | $1,500 – $3,500 | Most brokers |
| Physical damage | $2,000 – $6,000 | Lenders financing the truck |
| General liability | $600 – $1,500 | Some brokers and shippers |
| Full package, first-year authority | $18,000 – $30,000+ | — |
Hazmat, reefer, auto-hauling, and tanker operations run well above these ranges because the cargo itself carries more risk, and in hazmat's case, a higher federal minimum. Use the calculator in the embedded tool above to get a range tailored to your cargo type, state, and truck count, and compare it against our full trucking startup cost breakdown so insurance is weighed against every other first-year expense, not in isolation.
Underwriters price the same authority differently depending on a short list of variables. Getting ahead of these before you shop can move your quote meaningfully:
Run your own driving record before you shop, not after a quote comes back higher than expected. Our MVR review calculator flags the same issues an underwriter will look for.
For the full registration sequence around insurance, including the order that keeps you from paying for coverage before you can legally use it, see how to get trucking authority and the new authority checklist.
The most common delay is not a coverage problem, it is a sequencing problem. Carriers bind a policy, assume the BMC-91 is automatic, and find out weeks later it was never filed because a form was missing or the agent was waiting on a down payment that never cleared. Confirm the filing in writing, not just the policy declaration page.
A second common mistake is quoting the wrong liability limit for the cargo. An auto hauler quoted at the standard $750,000 general freight limit will not activate, since auto-hauling requires $1,000,000. Match the quote to the commodity from the start rather than discovering the mismatch after the FMCSA rejects the filing.
A third is assuming cargo insurance is federally required and skipping it to save money. It is not required by the FMCSA for most carriers, but almost no broker will tender a load without proof of it, so skipping it does not save money, it just delays your first paycheck.
A freshly issued MC number is public information, and mail and calls follow within days. Most offers claiming to expedite your insurance filing, guarantee approval, or speed up FMCSA processing for a fee are not legitimate:
If an offer arrives before you have told anyone your MC number publicly, that alone is not proof of a scam, since the number is public the moment authority is granted. What matters is whether the offer promises to bypass a step that is actually free or federally timed. If it does, decline it.
The new-entrant surcharge is not permanent. Once you have twelve months of claims-free operation and a CSA score behind you, most carriers will re-rate the policy, and it is worth shopping again rather than automatically renewing. Track your CSA BASIC scores using our CSA score estimator, since a clean score at renewal is the single biggest lever you have over next year's premium. Installing an ELD and camera system, raising your deductible if cash flow allows it, and consolidating multiple trucks onto one fleet policy instead of separate owner-operator policies can also bring the number down.
Federal requirements cited here come directly from 49 CFR 387.9 and FMCSA's registration forms page. Cost ranges are drawn from typical new-authority quotes reported by owner-operators and are meant for planning, not as a rate quote from any specific insurer. Carrier appetite for new authorities changes by state and by quarter; confirm current underwriting rules directly with each company before applying. This page is reviewed for regulatory accuracy each time the FMCSA updates 49 CFR Part 387 or its registration forms.
Not legal or financial advice. Requirements vary by state and change over time. Verify current rules at fmcsa.dot.gov before filing.