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Your first months with a new MC

A new motor carrier is in FMCSA's New Entrant program for its first 18 months and gets a safety audit within 12 months of starting operations. Some brokers will not book an MC until it has history. You get loads sooner by keeping your SAFER record exact, having insurance and paperwork ready, and building inspection history clean.

Updated

By Powerhaul Freightmovers

New entrant period
18 months
Safety audit
Within 12 months
Liability minimum
$750,000 general freight
Fail and do not fix
Registration revoked

The new entrant period

Every new motor carrier starts in FMCSA's New Entrant Safety Assurance Program (opens in a new tab). FMCSA says a new entrant is monitored during its initial 18 month period, and gets a safety audit within 12 months after beginning operations.

MilestoneTiming
Monitoring periodFirst 18 months
Safety auditWithin 12 months of starting operations
Failed auditCorrective action required
No corrective actionUSDOT registration revoked

The audit looks at whether you run a real safety program: driver qualification files, hours of service records, drug and alcohol testing, vehicle maintenance and insurance. FMCSA lists certain violations, such as having no drug testing program or operating without required insurance, that fail the audit automatically. Set up those programs before your first load, not the week before the audit.

Why some brokers pass on new MCs

Expect some brokers to say no because your authority is new. It is not personal. New authorities are where a lot of fraud hides: thieves register fresh numbers, book a few loads, steal the freight and disappear. A broker protecting a shipper's freight looks for signs a carrier is real and has a record.

Two things are usually missing on a new MC. The first is time since the authority was granted. The second is inspection history. Some carrier monitoring tools flag a carrier with zero roadside inspections, and some brokers will not book a carrier until it has a few. The only way to build that history is to run, and a clean inspection is a plus on your record, so do not avoid open scales.

Each broker sets its own rules. Ask during setup what the minimum is. Brokers that do book new carriers often ask for more proof instead: a call to the number on SAFER (opens in a new tab), photos of the truck, or a tracking link for the whole load.

Make your record easy to trust

When a broker vets you, it is checking whether you are who you say you are. Make that check fast and clean.

  1. Your SAFER phone, email and address match what you give brokers
  2. Insurance is filed with FMCSA and your certificate comes from your agent
  3. Your truck and trailer match what your paperwork describes
  4. Your carrier packet is complete and ready to send
  5. Your company name, MC and DOT number are on the truck as required

Answer the phone number on your SAFER record. Brokers fighting fraud call it, and a voicemail box that is full loses loads. Guard your own identity too: FMCSA notes on its fraud alerts page (opens in a new tab) that it does not ask for payment or sensitive information by unsolicited email. Criminals target new carriers with fake renewal and registration notices.

Insurance before the first load

You cannot haul for hire without the federal minimum in place. For a for hire carrier of general, nonhazardous freight in a vehicle of 10,001 lb or more, the minimum public liability is $750,000 (opens in a new tab).

That is the floor, not what brokers ask for. DAT (opens in a new tab) notes that most shippers and brokers require $1 million in liability coverage, and most also set a cargo coverage amount. Ask the brokers you want to work with what they require before you buy a policy, so you do not pay for coverage twice. Read the cargo policy for exclusions: some exclude certain commodities, unattended vehicles or specific trailer types.

Send your certificate of insurance from your agent, not as a PDF you edited. A certificate of insurance that arrives straight from the agent is one more sign a broker can trust. Insurance and authority problems are also on the list of automatic failures in the new entrant audit, so keep the policy active and paid.

Building freight in the first year

The first months are about getting a few brokers to trust your truck. Start where new carriers are welcome and grow from there.

Use load boards to meet brokers, and say up front that your authority is new. Some brokers specifically look for small carriers they can build a relationship with. Haul those first loads perfectly: on time, check calls answered, paperwork sent the day you deliver. Then ask for the next one. Our guide to finding loads covers how to turn one load into a lane.

Keep every record clean from day one: logs, inspections, maintenance and rate confirmations. Those same records get you through the safety audit and show brokers you are a real company. Powerhaul checks every carrier against FMCSA records before booking, and you can see what we look at on the haul with us page.

Questions people ask.

How long is a new MC considered new?

FMCSA monitors a new carrier for its first 18 months in the New Entrant Safety Assurance Program. Many brokers also set their own age rules for an MC number, which vary from broker to broker. Ask each broker what its minimum is during setup.

When does the new entrant safety audit happen?

FMCSA says within 12 months after a carrier begins operations. The audit reviews your safety management: driver qualification, hours of service, drug and alcohol testing, vehicle maintenance and insurance. Some violations, such as no drug testing program, fail the audit automatically.

What happens if I fail the new entrant audit?

You must put corrective action in place within the time FMCSA gives you. FMCSA says failure to do so results in revocation of your USDOT registration. Fix the problems in writing and keep the records that prove it.

Why did a broker say my MC has zero inspections?

Some brokers and carrier monitoring tools treat a carrier with no roadside inspections as unproven. Inspection history only builds as your trucks are inspected. A clean inspection is a good thing on your record, so do not avoid open scales.

How much insurance do I need with a new authority?

The federal minimum liability for a for hire carrier of general freight in a vehicle of 10,001 lb or more is $750,000. DAT notes most shippers and brokers require $1 million, plus cargo coverage, so ask before you buy a policy.

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