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Are you interested in starting a tow truck business in the US? If you say yes, know that there may be a need for you to obtain an Operating Authority from the Federal Motor Carrier Safety Administration (FMCSA).
However, not all tow truck services require an Operating Authority. Some types of tow truck operations may not need this requirement, such as private carriers, for-hire carriers that haul exempt commodities, or carriers that operate within a commercial zone.
But how can you know if your tow truck needs this authority? Don’t think too much, because this article gives you a professional step-by-step guide on how to get authority for your tow truck in the US. To soundly equip you, this article helps you to know if you need Operating Authority, how you can get the right authority for your truck service, and how you can comply with other federal and state regulations for tow truck services.
Are you ready to learn more? If yes, begin by finding out if you need an Operating Authority for your tow truck service. Are you excited? Dive in now!
To know if you need authority for your tow truck:
1. Understand What Operating Authority Entails
To find out if your tow truck needs authority, understand what an Operating Authority is. Bear in mind that the Operating Authority is a legal permission that allows you to transport passengers or cargo across state lines for a fee or other compensation. The Operating Authority also determines the type of insurance and financial responsibilities you must maintain as a motor carrier. Without Operating Authority, you may face fines, penalties, or even legal actions from the FMCSA or other authorities.
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2. Determine If You Need Operating Authority
To grasp if you need Operating Authority for your tow truck, determine if your tow truck service needs the authority. Note that you may need an Operating Authority if you transport passengers or cargo in interstate commerce for a fee or other compensation. To easily be aware if you need Operating Authority, check the bullet points below to see if you fall under any of these categories.
You need Operating Authority if you:
- Transport others’ vehicles across the state lines.
- Arrange for the transportation of vehicles with different ownership across state lines.
- Charge a fee or receive any direct or indirect compensation for transporting vehicles across state lines.
For instance, if you tow a vehicle from New York to New Jersey and charge a fee for it, you need an Operating Authority. If you broker a deal between a customer and another tow truck company to transport a vehicle from California to Nevada and receive a commission for it, you need an Operating Authority. If you tow a vehicle from Texas to Oklahoma as part of a charity event and receive a donation for it, you need Operating Authority.
Nevertheless, take note now that if your tow truck operation is not interstate commerce, you don’t need an Operating Authority. To know how you operate your tow truck, check if the service you render falls under any of these groups:
- Private carrier: This means that you transport your property or passengers by yourself.
- For-hire carriers that haul exempt commodities: This means you transport goods that don’t need FMCSA regulations.
- Carriers that operate within a commercial zone: This means you operate within a FMCSA’s designated area for free trade and commerce among states. For example, if you tow vehicles within the Dallas-Fort Worth-Arlington commercial zone in Texas, you do not need an Operating Authority.
3. Choose the Right Type of Operating Authority for Your Tow Truck Service
To get if you need an authority for your tow truck, choose the right type of Operating Authority for your tow service. Can you imagine that the Operating Authority is not a one-size-fits-all permission? Yes, you have different types of Operating Authority for different types of motor carriers. Each type of Operating Authority has its own rules, regulations, and fees. Therefore, you must choose the right type of Operating Authority for your tow truck service.
The FMCSA categorizes motor carriers into three main groups: Motor Carrier of Property (except Household Goods), Motor Carrier of Household Goods, and Broker of Household Goods. Each group has its subtypes of Operating Authority. For instance, if you are running a Motor Carrier of Property (except Household Goods), your filing fee for its Operating Authority is $300.
To choose the right type of Operating Authority for your tow truck service, consider the following factors:
- The type of vehicles you tow if they are household goods or not.
- The origin and destination of your tow truck service: Do you operate within or across state lines?
- The nature of your tow truck service: Do you transport vehicles yourself or arrange for their transportation by others?
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4. Know How to apply for Operating Authority online
To know if your tow vehicle requires authority to run, know how to apply for an Operating Authority online. Do you know these steps are very simple and convenient? You can complete your application in four easy steps:
Register with the FMCSA and obtain a USDOT number
Ensure you obtain a USDOT number from FMCSA. A USDOT number is a unique identifier that allows the FMCSA to monitor your safety and compliance records. You need a USDOT number if you operate a commercial vehicle that:
- Has a Gross Vehicle Weight Rating (GVWR) or Gross Combination Weight Rating (GCWR) of at least 4,536 kg (10,001 pounds), or greater.
- Transport more than 8 passengers (including the driver) for compensation. Or transport more than 15 passengers, including the driver, but not for compensation.
- Transports hazardous materials in quantities requiring placarding.
To obtain a USDOT number, you need to visit the FMCSA website and complete the online registration form. Provide some basic information about yourself and your tow truck service, such as Your name, address, phone number, and email address. You also need your business name, type, and structure
Your vehicle information, such as make, model, year, VIN, and GVWR. In addition, provide your operation classification, (such as interstate or intrastate), cargo classification, (such as household goods or general freight), and your safety certification and compliance statements. Expect the USDOT number from FMCSA immediately after you complete your registration.
Complete and submit the online application form (MCS-150)
Visit the FMCSA website to apply for the Operating Authority. Provide some additional information about yourself and your tow truck service, such as your USDOT number and PIN, your type of Operating Authority, and your liability insurance information (such as carrier name, policy number, and coverage amount). In addition, submit your process agent information, such as the name, address, and phone number of a person or company that can accept legal documents on your behalf in each state you operate in. Finally, provide your certification of compliance with federal regulations, such as safety, drug and alcohol testing, and hazardous materials. After you submit the form, expect a confirmation email with your application number. Write down your application number and keep it in a safe place.
Pay the filing fee
Ensure you pay the filing fee for your type of Operating Authority. The filing fee is $300 for each type of Operating Authority. You can pay the fee online using a credit card or an electronic check. You can also pay by mail using a check or money order. However, paying by mail may delay your application process. To pay the fee online, visit the FMCSA website and follow the instructions. Provide your application number and USDOT number. After you pay the fee, you are going to receive a confirmation email with a receipt. Print out the receipt and keep it in a safe place. You need it to prove your payment in case of any dispute.
Receive your MC number
Expect your MC number by email within a few days. Your MC number is a unique identifier that shows that you have Operating Authority from the FMCSA. Write down your MC number and keep it in a safe place. You need to display it on your tow truck and renew your Operating Authority every two years.
However, note that receiving your MC number does not mean that you can start operating your tow truck service right away. You still need to comply with other federal and state regulations for tow truck services, such as obtaining insurance, filing proof of insurance, registering for Unified Carrier Registration (UCR), obtaining International Registration Plan (IRP) credentials, obtaining International Fuel Tax Agreement (IFTA) credentials, obtaining state permits or licenses, displaying identification markings on your tow truck, complying with safety and inspection standards, etc.
Recap
To understand if you need authority for your tow truck, first grasp the concept of Operating Authority and find out if you need one. Then, evaluate the different types of Operating Authority and discover how to choose the best one for yourself. Finally, visit the FMCSA website and register for the Operating Authority of your choice.
