Sometimes you need to take a break from your trucking business.
Whether you’ve decided to operate under someone else’s authority for a while or parked your truck completely, you might have questions about what will happen to your operating authority.
You don’t want to lose the age of your authority, but you also don’t want to have to pay thousands of dollars on insurance that you don’t need.
The answer could be voluntary revocation. Let’s talk about it!
(Please keep in mind that this information should only be used for educational purposes. Seek professional legal advice if you are unsure of how to proceed.)
What is voluntary revocation?
Voluntary revocation of a motor carrier operating authority is the process carriers can go through to let the FMCSA know that they have suspended their operations.
Once you complete this process, you can allow your insurance plan to lapse or cancel your policy without facing penalties from the FMCSA.
If you allow your insurance policy to lapse or cancel it before going through voluntary revocation, it will result in an involuntary revocation of your operating authority. Getting your authority back after an involuntary revocation is a longer process which could include an audit.
To request a voluntary revocation, you should complete this form on the FMCSA website.
It’s important to understand that you can’t operate in interstate commerce without an active MC authority.
What if I want my operating authority back?
Let’s say you plan to lease your truck on to another carrier for a year or so until the market conditions improve. Once you see the spot market rates coming up again, you’ll want to get your MC number back.
For this, you’ll need to go through the FMCSA’s reinstatement process.
First, you’ll need to make sure your BOC-3 filing and proof of insurance are in place again.
Then, you can request reinstatement online with a USDOT PIN or submit the form directly on the FMCSA website. Be sure to include an updated MCS-150 form in your request.
The cost of reinstating your authority with the FMCSA is $80.
For more information about this process, visit the FMCSA website. Instructions may vary if you’re a hazmat or other specialty hauler.
Weighing the risks and benefits of voluntary revocation
With voluntary revocation, you get to put your MC authority on hold without paying the high cost of insurance, allowing you to stop operating your trucking business or take it in a different direction.
The other benefit is that, compared to involuntary revocation, you can reinstate your authority later with relative ease.
The downside is that, depending on the insurance provider and brokers you’re working with, you may not be able to pick up exactly where you left off if you choose to reinstate your authority.
Reports about this process vary – you could face higher insurance premiums and risk being treated like a new carrier again by brokers when you return.
Instead of going through voluntary revocation, you could talk with your insurance provider about downgrading your policy to the minimum required coverage. This would reduce your costs while keeping your MC authority active.
Need more information about commercial trucking insurance? Check out this article: A Guide To Shopping For Commercial Trucking Insurance.