How Much Does It Cost To Start Your Own Trucking Authority

The Federal Motor Carrier Safety Administration (FMCSA) only charges $300 to issue and file an operating authority. However, you’ll also have to fund several other elements of your business, including insurance, monthly truck loan payments, fuel, IFTA filing, and taxes.

How Much Money to Set Aside to Become an Owner-Operator

Use the cost breakdown below to get a better idea of how much overhead you need to drive under your own trucking authority:

• Insurance: The policy required varies based on your carrier authority type, but you can expect the annual premium to range from $8,000 to $14,000.
• Hauling Trucks: Since you will no longer be leasing from a motor carrier, you’ll have to get your own trucks now. A standard semi-trailer truck costs around $130,000 to $200,000.
• TMS: A Transportation Management Software can set you back by a one-time payment of at least $10,000.
• Accounting and Bookkeeping Services: Unless you have extensive accounting knowledge, hire a professional CPA and bookkeeper to do your number crunching.

Only apply for an operating authority once you’re ready to build a trucking company from the ground up. While the application fees cost very little, the insurance premiums, truck payments, and maintenance fees that come with being an owner-operator can add up to several thousands of dollars. Ensure that you have the necessary funding.

Do you plan to haul freight over long-distance routes? Assured Standard recommends looking for a suitable insurance policy first. Use our piece explaining the best owner-operator truck insurance policies for long-haul truckers.