My Insurance HACK When Applying For Operating Authority

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ABOUT ME:
What’s up y’all? I’m David McGill, a 2007 graduate of Indiana University’s Kelley School of Business, an experienced accountant, trucking business owner, and consultant. I created Trucking From Scratch®️ to help other entrepreneurs start, run, and grow successful trucking businesses by breaking down the business side of trucking.
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The information provided in this video should not be construed or relied on as legal, tax, investment, or business advice for any specific fact or circumstance. It's content was prepared by McGill Accounting LLC, with its principal office located at 1075 Broad Ripple Ave., PMB 390, Indianapolis, IN 46220. This video is designed for entertainment and informational purposes only. Viewing this video does not create an accountant-client relationship with McGill Accounting LLC. You should not act or rely on any of the information contained herein without seeking professional legal advice.
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[@marty1538]

I just called dot to ask. They said you can start your coverage 48 hours before you’re authority is applied. Aka day 19 of the 21 days. Hope this helps save y’all money.

[@Samil101]

All you had to do was tell the insurance company you want your start date for your insurance to start in 21 days, not immediately.

[@TheLaze85]

Smart

[@tdavis251]

When you apply for your authority it's best to wait 10 days to get your ins. Also you have 90 days from the date of your application for your authority to be in compliance with the FMCSA. So you have a lil time to get things right before they deactivate your account. Not trying to step on any toes just passing along a lil info Bro..

[@br3wskee]

Thanks fam. Im catchin' hell on the Application

[@Philthaentrepreneur]

Thanks

[@ednarivera1535]

Thanks for the info step on a toes you want !! 🤭👍🏼👍🏼is all good info

[@tdavis251]

@anthony villegas when you apply they give you the DOT #. Yo activate your number you must get insurance and file a BOC3. If those two is not done within 90 days they will put your numbers on hold & you will have to submit a letter telling them to take your numbers off hold because you have everything up to date. HOPE THIS HELPS

[@tdavis251]

@anthony villegas now I'm not sure about that you'll have check. I had a company file mine and it was only a one time filing fee. And if they say it will be a yearly fee they are lying. You only file it once the company I used charged me I believe $45.

[@againstallodds404]

Can't beat the look of satisfaction on your face when you realized your theory worked🤣😎 Great video!

[@lawrenceparish1356]

Can you pay the application fee& your dwn payment for you insurance....and not own a box truck yet just to get yoyr authority....i was going to rent a box truck starting out.

[@marissaux]

@@lawrenceparish1356 unfortunately you can’t start a policy or pay for one without the actual info of the truck which includes the minor details like vin #, year, carrying load capacity, dimensions of trailer, sleeper/no sleeper, any technology you rely on inside the cab, engine size, etc. The truck rental place always offers insurance as an add on and it’s usually good quality coverage for the $money. You can also adjust your personal auto ins to cover you while driving the rental truck, for an added cost, of course. If you have any commercial ins Q’s let me know. I’m an Independent Commercial Insurance Broker licensed in CA, specializing in saving Truckers time & money. ☺️👋🏼

[@TheLaze85]

Lmao wordddddd

[@PrettyCleanThings]

Put it to the test, but actually paid a week before authority went into effect and it works!

[@robertesposito9871]

I watched a woman on you tube that works for a processing company and she said to do like you did, she said wait 5-7 days before your app is approved and that’s usually a safe way to do it,

[@darrellwiggins4971]

Can you help me

[@PrettyCleanThings]

@@darrellwiggins4971 Absolutely. Please call 346-283-9329.

[@TheTruckWhisper]

I did my authority on the 2nd paid my insurance on the 18th went active on the 21st

[@will7562]

@@robertesposito9871 can you tell me what video because im about to get my authority and want to see another as well do this in action

[@calenolan1945]

I let my 21 days come and go before I bought insurance. My authority was active 2 days after I bought insurance

[@Boomer-ce7lj]

Damn. Now that’s what I’m talking about

[@burhanberkolli5598]

Man thanks for letting us know because that's my plan too. I don't even have a truck or authority and especially not insurance over 3thausand dollars.

[@juancepeda9620]

Yup . You can do ut that way..

[@dondelani7519]

So you don’t need insurance to get authority, MC or dot number?

[@thelifeoffamily-amz]

@@dondelani7519 You Need it to activate your authority! So Apply for your authority first then after the 21 days buy insurance and your DOT will activate in 1 to 3 days. no money and time wasted in the process! Also After the 21 days You have a window of 69 days to get your insurance or else your DOT authority will be disactivated, plenty of time to shop around for insurance!

[@hound4u937]

You can " pause " or not activate your insurance policy until you get your DOT numbers. FMCSA also gives you a grace period to activate your insurance policy.

[@redpillscience1288]

How

[@mazimike88]

Facts😂😂 90 days

[@k3serviceusedcarsale829]

Just make your insurance effective from 20th day of app. How hard is it to understand? Avoid all that nonsense... Good luck y’all!

[@TruckingFromScratch]

Agreed, throughout the thread we came up with the that solution after speaking with a couple agents. Thanks for the feedback.

[@titoali855]

Bro, I just stopped the video in the middle of it to say: really, really, honestly, THANK YOU, because you helping others very simply like that, while we nowdays are surrounded with people of (go figure out it by yourself! I didn't suffered for years to then you show up and have it that easy!!).. regardless you helping with trucking or anything else, this world really need people like you, even the goodness is clear in your face.. I don't know why some as***holes gave you a dislike.. I believe they are of that type I talked 👆 about.. Thank you man, keep doing what you do

[@mrjalstonify]

I unfortunately am one of those people who rarely eave reviews and comments. But this right here...Has been some very valuable information for me. Last week bought my truck outright zero payments. Today I initiated the process with a company to file and set up everything that needs to be done to get authority. I thank all of you that have put this information out there. Especially David McGill💯💪🏾💯

[@damolaadesanya2806]

which company you use to set up the process if you dont mind

[@princessstokes975]

McGill thanks for all you do to educate our trucking industry! You're the greatest.... . Much Lol

[@MarsellusWallace2024]

When I started I did something similar to this. But, what I did was put in my application and then waited the 21 days. I figured that there is a reason they are sitting on it for that long so I didn’t want something to come up at the last minute before that period Was over that would lead to me not getting started after I had made the insurance payment. So after the 21 days was over, that’s when I made the deposit on my insurance and waited for my authority to become officially active then I hit the road. This maximize my time and allowed me the Full21 days to make sure something crazy didn’t happen with FM CSA that would keep me sitting at home after I had made my insurance payment.

[@ni4nijustice855]

just curious,how much was your insurance per month when you started with a fresh dot?Thanks

[@kcharry]

Exxxxxxxxactly! I did this same thing

[@Randyjj92]

So I’m hearing different methods some failed some worked yours seems more ideal so check this out I have my LLC, EIN, Dot medical card, business account. I started the FMCA Application but I haven’t submitted it yet, so based off your process should I submit the FMCSA app now and go ahead and do the mcs 150, UCR, get the rental truck, and do the boc3 within the 21 days ?

[@muffpaid6955]

@@Randyjj92 do your boc3 as soon as you are done with the application. You can’t do your mcs150 until you get the PIN number in the mail, which will come after get the mc&dot number

[@rsingh6590]

Nice, how long did it take after the the 21 days for the mc to become active? Thanks

[@abhijeetsingh2048]

Bro your genuine advice and truthful info is gonna help your channel blow up ! Thanks

[@debpritjay]

That’s what i actually did based on my Insurance rep recommendation to save me money! my insurance payment is due on the 15th. It worked out great!

[@collietransportllc5861]

THANKS IM TRYING FOR SAME THING!!!

[@corneliusgray2042]

What exactly did you do?thanks in advance

[@RodneyB-f4t]

Thk you, just starting company formation. Will be contacting you about tax set up and accounting thks bro.

[@cassiadiscipula12]

I really like and appreciate your videos, here is another thought about this subject, you can lease under another company authority for the first 21 days. I actually do this for other owner operators I have my authority but I lease owner operator.

[@kaosdevine-shine3173]

How does that work though?

[@businesscryptobags7098]

FYI : the insurance companies has direct connect with the FMCSA it can show up the same day I’ve done it multiple times . Never waited not even 5 days.

[@jameslynch2383]

Been running through your videos recently. Really appreciate the great info and your interest in helping new/other trucking businesses.

[@williamhall2287]

Thank you for sharing your experience and all of your great content! I called FMCSA and the rep said that I do not have to carry insurance until I receive my MC number. I asked her about 3 times to make sure I understood it correctly. There’s no need to have insurance while you’re waiting the vetting period. I’m going to apply and I will activate my insurance on day 18. I will update this comment when I receive my MC #. Also progressive wrote me a quote no problem as a new company

[@TruckingFromScratch]

You get your MC number once you complete the application. It’s just not active until the FMCSA receives everything

[@trucker_gainez]

How’s it goin?

[@williamhall2287]

@@trucker_gainez pretty good. I started insurance at day 12. My MC went active at day 21. Also I called about 3 days before it went active and they told me when it was scheduled. Brokers don’t mind working with new companies. I have only had 3 brokers say I have to be in business longer. McGills videos are crazy helpful

[@trucker_gainez]

@@williamhall2287 That’s great! Thanx for sharing!

[@najn2372]

@@TruckingFromScratch how much was your insurance down payment?

[@sederickkelly3668]

Your supplying knowledge thats actually an successful O/O manual. Thanks for ALL the videos!!

[@RedskinzFan]

Thats insane, you should wait the full waiting period then once your operating authority is granted THEN you pay the insurance, your authority won't go active until its paid regardless however now you have a FULL month to run before next payment is due

[@TruckingFromScratch]

From my experiences, Even waiting the 21 days before paying the insurance, it still takes 10 days after paying the insurance before your authority is active. So you still end up burning 10 days of insurance coverage

[@Truckinainteasy]

you the truth man thank you for all wisdom and truth you put out there for us

[@geoestrada5001]

I remember when I got my truck insurance the insurance took two weeks to registration comes to anyway every State is different than others, but you telling us is truth, thanks brother for your help

[@fernandocolone7359]

I was told the weekends don't count only business day's.

[@mrbigb250]

Great videos brother! I'm looking to get out on my own and start running a few trucks. For now, I work for MHC Truck Source in Chicago. Truck sales. So I have a line on good used trucks. LOL Keep the videos coming! HUGE HELP for what i'm looking to do.

[@billreamer2524]

Do you have a website for your truck sales

[@jmmusic231]

Help to us with really special prices for a truck 😅

[@sherzodriskaliev1133]

i have to buy atruck, can you help?

[@chickenricesteak541]

We actually had full coverage insurance bought Commerical 1 week prior when we got our dot and MC. It took 1 week to go active

[@extreemdancers]

I did mine the 15th day active 5 days after

[@collietransportllc5861]

NICE

[@diesel81937]

it worked ?

[@extreemdancers]

@@diesel81937 yep

[@KT-qz3nu]

I chanced it and got my insurance on the 20th day Authority granted 3 days later!

[@djx904]

Man that sounds like a winner! I’m feeling lucky, I just applied. Gonna give it a try around day 15ish

[@locbautista7575]

Love the free thinking, keep growing and never stop learning ❗️✅

[@Calinkswag]

The approval takes 21 days. Apply for your D.O.T first. Once approved, than add insurance to it. Your insurance makes your D.O.T# active.

[@467inc]

this just might be my favorite video. i see your point

[@BookofRobert]

This killed me right off the jump insurance didn’t let dot know I had insurance for 30 days really killed my pockets

[@drgroove]

You can run intrastate for 21 days you cant go out of the state.

[@antchava85]

it made since. The insurance was activated 8, or 9 days later , which will actually let you "run,Work" for 18 days until your next insurance payment from the date you where granted operating authority. instead of loosing a full 30 days of paid insurance and making Zero Money

[@Jake-ui9ih]

Impressive channel. articulate, informative, and I look forward to watching your videos. thank you.

[@truckandtea]

Actually the person who doing my dot paperwork. Told me don’t pay insurance right away wait 21 days then start paying insurance then you not losing any days !

[@TruckingFromScratch]

I’m testing that out right now myself

[@truckandtea]

@@TruckingFromScratch let us know. I’ll do the same when I get my company very soon

[@Quangunna]

@@TruckingFromScratch did it work ?I’m thinking bout paying on the 14 day

[@royalflush8173]

You make a lot of sense my young brother

[@frankcerbantes9429]

It makes sense and the way that should be done ,he insurance depending on the state it's expansive as jack Will try it that way

[@JPCreole]

This was great! Glad I found this video before I started the insurance. This was so clutch!

[@jodysmuseo]

I appreciate this video. It covered a major part in my DOT and insurance process.

[@dwighthenderson7012]

I'm taking notes.Great info.

[@Davidsonjones49]

It’s amazing how you knew that I needed this information! Thank you.

[@asey9508]

Critical information appreciate the insight. I’ll be testing this theory myself.

[@jaybrewer3040]

Awesome information but dang you drew that out as long as possible. I kept waiting to hear about what you put on the application if it asks about ins. LOL in any case Great Job, Sir. Thank you so much for sharing!!!

[@elijahdavis6200]

This is only if you are operating out if state. If you are operating within state lines you can work make money and pay your insurance just into me for your Operating authority to be active

[@jordanmeija7384]

Great info, thanks David, every lottle bit helps,pure gold....aeesome👍😁

[@kendrichand]

Used the hack i paid my insurance 2 days ago filed authority on feb 4,, They told me today I am scheduled to go active march 3 at 1201 am

[@el_engineer0p106]

A theory is an explanation, A hypothesis is an idea like the one you had. My professor had a joke when people say “I have a theory about this ”... to which he would say. “No you don’t, trust me if you did I would of read about you by now.” Regardless i appreciate the information and your channel. 👍🏻

[@marcusford809]

Fmcsa told me it’s 21 business days to activate authority. That’s longer than what I’ve been hearing. They even told me what date I can expect to have it active and when I should get insurance

[@TheBlkac1]

Its law! 😎The main point is to have insurance!👍🏿😎

[@labratlogistics1936]

Thanks for sharing all your knowledge and experience.

[@AbcXyz-rn2lz]

FYI good luck getting insurance without a VIN registered to you. You need insurance to even start on DOT and MC. I did the process myself direct with own truck and trailer.. 4.8k a month for insurance.... Then you gotta do inspections and ifta and permits before you roll

[@TruckingFromScratch]

You don’t need insurance to start on DOT and MC

[@AbcXyz-rn2lz]

@@TruckingFromScratch I did for DOT, and needed a vehicle for progressive

[@petesmalls08]

Still one of the best out there.

[@ProdbyGrimeyred]

most insurance companies take 2 months as a down payment so tho the theory is good having the 2 months is even better. Good job.

[@evonblakepoliceandpoetry7216]

Thanks bro, just applied for my authority going to try this

[@kirabutler7985]

Why not do it at 20 and on the lower end and get cheaper insurance plus a full 30 days?

[@johnatkins3498]

Very impressed with the knowledge base and the think tank strategy definitely would like to get with you on the mentor coaching cost to get started with my trucking company

[@DrSamBeckett]

Just the video I needed! Appreciate it man!

[@wherezryo]

Golden. Good shit brother ✊🏽

[@aaronjohnson4151]

Thank you so much for this info. Super helpful!

[@patrickmcginnis6823]

It made a lot of sense .

[@jlove230z]

Actually I did mind in one day only thing you got to do is get your insurance (agent) to file but the broker agent not to release yet. Boom 1 day Authority

[@TruckingFromScratch]

There’s a mandatory 21 day protest period on the federal level

[@ahadiqbal7233]

Another great video, thanks brother!

[@brandondaily9659]

Just wanna say your a genius

[@immanuelisrael1658]

Can I insure my authority without having a vehicle? I plan to rent a 26ft box truck

[@belindacarr8974]

Great question, following

[@Pewtv101]

kzbin.info/www/bejne/e2WkqGupiLOZaNk

[@colleenoloughlin3970]

When you first get your authority my guess is maybe Uber will let you book loads because of no experience as an o/o with their own authority. How do you find out which insurance(s) you need to have to book loads off boards?

[@elginace1]

The premiums are crazy for a new o/a!!! Even with excellent credit and plenty of capital. I have a new cdl and operating authority in illinois they want $40k in insurance premiums a year for one rig? If I hire a driver with a couple years of clean cdl driving will the rates go down? Do the rates change everytime I change drivers? Thank you for all your efforts.

[@myprivacy998]

That seems high. Try driving under someone's authority that have lower monthly premiums

[@2preach]

I'm out of Florida over 3yrs of experience do you help with starting a trucking company and obtaining an authority help with learning how to file all forms and paying taxes filling out carrier packages you know all things that comes with running a trucking company

[@TruckingFromScratch]

Yes I can help. Here’s the link to schedule an appointment with me: davidmcgill.as.me

[@damiernwhite5875]

Great information I will try this as well.

[@southmountainservices]

Shout out to all my AZ drivers! Reach out to my office for a new set of eyes for your insurance needs.

[@mrs.dllieberman3609]

David McGill, perfect! This is why and how having critical thinking skills saves money and gives anyone an advantage. Great Demonstration of your concept with tested living proof.

[@daverov9252]

saved me some money...thanks for the video

[@jacobpatterson3203]

Future date the policy to start 21 days later pay for it now then your first payment would be 51 days latter

[@ednarivera1535]

👍🏼👍🏼so u definately need insurances before applying for MC\DOT certificates

[@Philthaentrepreneur]

Thanks for info 🙏🏽👍🏽💯

[@ronaldwilliams4053]

Lmao I just watch that whole add thinking it was the video

[@eleonzocaldeeon1131]

Thanks for that information.

[@davidntakiyiruta1705]

Thank you David your vidios is very helpful,

[@zabrinarenea7116]

Thank you for this information.

[@tonytorres1624]

Great approach,it's business Davis you have to be profitable,good.

[@hotshottruckingtrainingcou9645]

Fantastic content, as always 👍🏾

[@phillipgoodmandj-drfeelgoo920]

Makes perfect since to me. Thanks Bruh. Like subscribed, shared!

[@iwtbrandh7970]

Hey man, thanks for posting this videos. I find them to be a really valuable. Great info. I have a question but don't know if you can answer it. Maybe you or someone else can direct me to a forum or something where I can find the answer. I am still not an owner operator but I'll buy a truck in the next month or two. I'm curious after I heard many stories, how can I know that the dispatch is not cheating me for the prices. I heard a bunch of stories where they share the profit with company owners you're driving for by taking a slice from the owner operator. I know you get a confirmation but isn't that something you can fix and put any number easily. Also, there is an option that you can call the broker and ask him directly but I think you will never get an answer that the way. I don't think he will even want to talk to you. Does Anybody have any experience with this?

[@umidr8218]

Ask them to send you snapshot... Every single company I worked for, i caught them lying... yeah, they were paying 2$ per mile, but the actual they got for 3 $ per mile... this is amazon loads, I dont know how the outside market is Thats why we opened our own company with my friends

[@iwtbrandh7970]

@@umidr8218 both things you mentioned make a lot of sense. I don't like the industry but running your own dispatch system saves you from some BS along the way.

[@otajonabduraxmonov3453]

@@umidr8218 Hi, how can I contact you? I am also interested in opening own company, I need your advise please.

[@akia.summers948]

@@otajonabduraxmonov3453 how's it going?

[@eyosaftberhanu]

Thank you so much for sharing this. I really appreciate it

[@armandotabares8561]

New to your chanel,great info and keep educating.

[@gisellej6531]

Thank you.

[@cire1013]

I got my insurance about 25 days in. 5 days later authority was approved

[@MiguelBandito1988]

Thanks for the info fam.

[@ericdallas2018]

My question is "can you complete a MC application and a USDOT application WITHOUT applying for insurance?

[@jayhopspops]

I’m struck right at this point. You can go on fmcsa and check your status. To my understanding the insurance sends information to fmcsa then they will put your status as active when they receive the paperwork

[@ProdbyGrimeyred]

yes you can

[@Cmgkingofmemphis]

Say u wait in something happen to ur truck stolen damage ect ect ? I say get insurance so as u own truck regardless

[@carsonestes6300]

Excellent video

[@buckoff...]

why wouldn't you just start insurance @ 21 day mark and get 30 days of insurance!?

[@fortheloveofmoney1752]

If I have no plans on driving, but want to lease owner operators under my authority, how can I do that if I can’t get any insurance without a truck?

[@derrickrobinson9505]

Great video.thanks

[@champelleauarling197]

It makes sense. Thanks for the info.

[@Bossstyles]

Great video. Thanks.

[@tyroneharris1611]

can you tell me how 2 update my insurance to the fmcsa

[@TruckingFromScratch]

Once you pay your insurance, the insurance company notifies the FMCSA

[@2fash721]

Good afternoon Davis, can I apply for my BOC-3 and UCR before applying for my mc and DOT?

[@samteetrucking9994]

No you have to have a dot to even sign into the UCR site

[@MrTtdavis]

Great video bro. My question is I'm assuming that you already had you truck prior to the application process correct??

[@johnsonk625]

"Applicants should be prepared to contact their agents to request filing of the required forms immediately after obtaining their designated docket number. These filings must be received within 90 days after the FMCSA has published public notice of intention to register the applicant."

[@robertking8231]

Very good. Thank you.