Leasing Operating Authority

Hello,

We are a trucking carrier, 5 trucks and 7 trailers, that is simply getting bent over by the insurance companies. At first they claimed the rates were high because we were new owners, and that they will go down 30% after 1 year of ownership.Well the 1 year has passed, and they increased $40,000, from an already ridiculous rate of $90,000.

We will simply not be sustainable at this new rate. So my question is, one of our drivers has a deactivated DOT and MC, that has a perfectly clean history and he has been driving truck since 1980. Can we reactivate them, and lease under his authority? I have to imagine this would lower our payments, as it will show a clean history, whereas ours was abysmal before we took over in end of 2018.

Is this possible? Do you think this would work? What all do we need to do for this to happen?

Any info would be appreciated.

If you reactivate it, it will be treated like a new authority and probably won't help with insurance rates. Plus you'll have to start all over with the brokers and their requirements.

Im not sure how you got that many trucks onto a new authority's first year, I thought there was a limit.

Nicholas your question isn’t really that simple. I understand the insurance rates, they are horrible. Did you buy this business already established??

You can reactivate your drivers DOT and run your trucks under it without a problem. It may or may not help your situation though. Your comments lead me to believe you have issues under your current number. Why??

Your insurance rates are based on the number of units and your drivers history. If you employ drivers with bad or less than ideal records your rates will go up.

Not to be too intrusive, but what is your freight. Are you just pulling broker loads or do you have your own customers?? It makes a huge difference in how you proceed to be profitable.

IF your just pulling broker freight you may consider leasing your trucks onto a larger carrier. You could then run under their dot and insurance rates.

I am a small fleet owner myself. I lease onto a large carrier for better insurance rates and they provide me office, recruitment and training resources that not only save me money, but far less headaches.

My email is in my profile if you would like to discuss business. I will never tell someone how to run their business, but I will honestly share my practices. Your option.

Best wishes to you