AutoTransMart makes sure that our customers shipments are safely insured. We check at the Federal Motor Carrier Safety Administration Web Site (FMCSA). We verify that our carriers are registered as "Common" carriers to ensure that they have cargo insurance. We also verify that they are registered with $1,000,000 in liability.
You may have all the required insurance, but if your insurance broker has not registered you properly at FMCSA, you will not be able to bid on loads from AutoTransMart. A quick phone call to your broker can get this corrected. There may be a small filing fee.
Getting registered as a Common Carrier may lead to increased business because customers can ship goods with you with confidence.
6. What are the definitions of common, contract, and broker Authority?
Common carriers provide for-hire truck transportation to the general public. Common carriers must file both liability (BI & PD) insurance and cargo insurance.
Contract carriers provide for-hire truck transportation to specific, individual shippers, based on contracts. Contract carriers must file only liability (BI & PD) insurance.
Brokers arrange for the truck transportation of cargo belonging to others, for compensation, utilizing for-hire carriers to provide the actual truck transportation. Brokers must file either a surety bond or trust fund agreement.
32. How do I determine if I need cargo insurance?
It depends on the type of authority you apply for with FMCSA. If you apply for common carrier authority, you are required to have on file evidence of both liability (BI & PD) and cargo insurance. If you apply for contract authority, you are only required to have evidence of liability (BI & PD) insurance on file. Common carriers hauling low value goods as specified at 49 CFR 387.301(b) may request exemption from cargo insurance requirements by calling 202-366-9805 and asking that they be sent a cargo exemption form.