What would be a rough cost of obtaining your own authority?

Insurance would be my main concern. Is $9k about the right range?

I've been told to start your own authority would cost out of pocket around $5k.

Thanks

 

IMO you need $80,000-$100,000 in order to have a good chance at succeeding as a carrier.

 

Hmmm I got my quote for insurance (needed for own authority incl 1 mil liability brokers want) at 9k, and I have been away from the business for almost 4 years; so I imagine you could do a little better then 9k if you find a good insurance broker. The brokers name was Cindy at western truck insurance.
Say can I ask if you know enough on your own how to file all the necessary papperwork, and if not who are you going to for help? Quess I have settled on OOIDA, but still negotiating on a truck now.

 

It costs exactly $300 to get your authority. That is the filing fee you pay the Feds. You can do it all on line. There are services which charge you in addition to the filing fee. I have seen some as high as $1,100. I don't see any reason to pay someone for doing something you can do yourself. You will need insurance and registered agents for every state in which you do business. If you are a member of OOIDA, they will act as your registered agent at no charge. Insurance costs will vary according to a number of factors. Your credit score, experience, area of operation, type of cargo, etc., are some of the factors use to determine your insurance premium. My cargo and liability insurance runs less than $4,000. When I first got my authority some years ago, I paid about $8,200, as I recall. At the time I had a good driving and work history, but was hauling cars. Part of the higher premium was due to hauling cars and the higher cargo coverage. I had $250,000 in cargo, at the time.

Your major costs in obtaining your authority comes from the insurance expense and operating costs before the money starts coming in from shippers or brokers. Most insurance companies will finance the premiums with about 25% down. No one can really tell you what your premiums will run. It varies with each individual. You will just need to check around with different companies. I would try to find a insurance broker who can shop the insurance with different companies. There are only a handful of insurance companies who will write motor carrier insurance.