New authority insurance cost
$19,486 and $27,991 a year, for one truck each, are what the two new-authority quotes Redoubt delivered in 2026 came to: a reefer semi with liability, physical damage and cargo in August, and a hotshot with $1 million of liability and the federal filing in September, which rose to $34,710 on a payment plan. Progressive publishes $734 to $926 a month per power unit as its 2025 average for new for-hire truck policies with no driver violations, not split by authority age. None of the carrier and program pages we read prints a price for a new authority.
Updated . Written by Andre Beukers, principal at Redoubt, a commercial insurance agency in Salt Lake City, not a government office.
What do new authority insurance quotes actually come to?
In August 2026, a reefer owner-operator on a new MC was quoted $19,486.25 for the year, about $1,624 a month, for a package we described as "liability (to activate your MC) + physical damage (cover your truck) + cargo with reefer breakdown (which dispatchers and brokers will require to give you loads)." In September, a hotshot carrier whose MC was still pending was quoted $1 million of liability with the federal filing, on a truck and a trailer: "$27,991 for the year if you pay in full, or $34,710 on a payment plan."
Two quotes are two files, not a market rate: they price different trucks, freight and coverages.
The published averages are not new-authority figures. Progressive says its 2025 national average "ranged from $734 for specialty truckers to $926 for transport truckers" a month, and its footnote limits that to "liability and physical damage coverage for policies with no driver violations," per power unit. Nothing on the page separates new authorities from other new policies, and neither it nor Canal's TestDrive page, Cover Whale's guidelines or One80's trucking program sheet prints a new-venture price or surcharge.
| Figure | Per month, one truck | What it includes |
|---|---|---|
| Progressive 2025 average, transport truckers | $926 | Liability and physical damage, no driver violations |
| Progressive 2025 average, specialty truckers | $734 | Liability and physical damage, no driver violations |
| Redoubt quote, new-MC reefer semi, August 2026 | About $1,624 | Liability, physical damage, cargo with reefer breakdown |
| Redoubt quote, pending-MC hotshot, September 2026 | About $2,333 paid in full; about $2,893 on the plan | $1 million of liability with the federal filing, truck and trailer |
How much is MC number insurance per month?
Dividing the annual premium by twelve gives you the arithmetic, not the bill. Our September hotshot quote works out to about $2,333 a month paid in full. On the payment plan the year came to $34,710, an average of about $2,893 a month and $6,719, or 24%, more than paying up front. Progressive puts its own discount in writing: "Most customers can save 10% or more when they pay their policy in full." Ask each market for the down payment, the installments and the total for the year.
Canal's TestDrive, for operations with "less than two years in the business," bills by the mile instead: only auto liability is charged per mile, while "physical damage, cargo, or truckers’ general liability" carry a fixed premium in equal installments. The charge "includes mileage when you are not pulling a load," so deadhead miles are billed too. Canal also lists "No monthly minimum premium OR interest" and applies the deposit to the renewal policy.
Can you start with liability only to keep the cost down?
FMCSA's rule, 49 CFR 387.7(a), bars a motor carrier from operating until it has in effect the minimum in 387.9, and 387.9 is a schedule of public liability limits, $750,000 for for-hire carriers of nonhazardous property in interstate commerce at 10,001 lb GVWR and up, with no cargo or physical damage line.
Cargo and higher limits come from the people you haul for. TQL, for one, requires a "Minimum $1 million auto liability insurance" and a "Minimum $100,000 cargo insurance policy" before you haul for it. In June 2026, a caller with a new MC told us they needed "the auto liability only because, you know, for six months, we can't get the load." Before you bind liability alone, ask the market whether it lets you add cargo or raise the limit mid-term, and what that costs.
Weigh the premium you pay before the first load, too. One buyer waiting on his authority in July 2026 told us his "truck's gonna sit for two to three weeks with just insurance in the driveway."
What makes a new authority quote higher or lower?
Running your own authority, to start with. Progressive's cost page says "Leasing to a company is usually cheaper than working under your own authority," and gives as one reason that owner-operators with their own USDOT authority "take on full responsibility for accidents, violations, and cargo claims." It adds that "the more coverage you need, the more your trucking insurance will cost."
One80 also asks for history a new MC does not have yet. Its trucking program sheet asks for "Loss runs for 3 + current year (4 years) valued within the last 90 days (if applicable)" and "Prior Premiums and historical unit count for current and prior 3 years (if applicable)"; a brand-new MC has none of its own to send.
Driver experience decides whether some markets quote at all. Canal's new-venture program requires "At least two years CDL driving experience," Cover Whale's guidelines say "2 years minimum driving experience with like vehicle," and One80 sets a two-year CDL minimum for all drivers. An underwriting reply on one of our October 2026 submissions read: "the insured has only had their CDL since 6/4/26. Cover Whale will not consider this driver." Progressive adds that "Even a minor speeding ticket on a trucker's driving history can significantly increase your rate."
When does new authority insurance get cheaper?
No carrier page we read says when, or by how much. What the programs publish is where "new" ends for them: Canal's TestDrive is for operations with less than two years in the business, and One80 asks any operation in business less than three years total for a New Venture profile. Those are eligibility and paperwork lines, not price steps.
If you enroll in Smart Haul, Progressive's ELD program, its footnote says "At renewal, driving data could increase or decrease premiums." A carrier about a year into its authority told us in October 2026 that "having a new MC with a total loss puts me out of it pretty much everybody's underwriting."
Have the first year's loss runs and driver changes ready when the renewal is shopped. That is our job as much as yours: "And when renewal comes around, we're already shopping on your behalf."
What is in a new authority quote besides the premium?
Taxes, fees and the way you pay. Canal's billing page says "Your invoice is a total of all your policy coverages with Canal plus any taxes and/or fees." Two of the markets on this page use non-admitted paper: One80's program sheet says "A- Rated Carrier / Non-Admitted paper," and Cover Whale lists Utah among its non-admitted states. Utah Code 31A-15-103 lets a nonadmitted insurer insure "a risk located in this state," and 31A-3-301 makes that transaction "subject to a tax of 4-1/4% of gross premiums," counting "the fees charged to the insured, however designated" as premium. On a $20,000 premium that is $850. The section does not say who pays it; ask whether the tax is in the quoted total.
FMCSA's own fee for the insurance filing is not paid with your application. 49 CFR 360.3T sets FMCSA's service fee for an insurer's accepted certificate of insurance at "$10 per accepted certificate" and charges it to an insurance service account FMCSA bills monthly. eCFR marks the permanent section, 360.3, "again suspended indefinitely"; 360.3T is the version that applies. Any filing fee on your quote is set by whoever lists it, so ask what it covers.
Before comparing two new authority quotes, put these side by side:
- The coverages and limits on each, line by line
- The total paid in full and the total on the payment plan, with the down payment
- Taxes and fees, and whether the insurer is admitted or non-admitted
- Whether liability is a fixed premium or billed by the mile
- Whether the market lets you add trucks in the first year; Canal's program allows up to four in total
Is $45,000 a year normal for new authority insurance?
No published figure says what normal is. Both 2026 new-authority quotes Redoubt delivered, for one truck each, came in under that: $19,486.25, and $27,991 paid in full or $34,710 on a plan. If a quote is that high, ask the market which trucks, drivers, limits and cargo it priced.
Is the $300 FMCSA fee part of the insurance cost?
No. 49 CFR 360.3T, the fee schedule that applies while eCFR marks 360.3 suspended, sets $300 for an application for motor carrier operating authority, paid to FMCSA when you apply. The premium goes to the insurer, and FMCSA's $10 fee for the insurer's certificate of insurance is charged to an insurance service account, not paid with your application.
Is pay-per-mile insurance cheaper for a new authority?
It depends on your miles, and Canal publishes no rate. Its TestDrive bills only auto liability per mile, counts empty miles, and puts your rate per mile in the policy packet; physical damage, cargo and general liability stay fixed. Ask for the rate per mile and the fixed premiums, then run them against the miles you expect.
Where these answers come from
Each entry carries the exact words of the source so you can check it yourself. Forms, rules and carrier pages change; read the current version before acting.
- 1. Redoubt text to a new-authority reefer owner-operator with its quote, August 2026 (internal record)
“That includes liability (to activate your MC) + physical damage (cover your truck) + cargo with reefer breakdown (which dispatchers and brokers will require to give you loads)”
Redoubt agency records, accessed August 5, 2026. Redoubt's own message describing the quote. The $19,486.25 annual premium is the record's value field, not part of the quoted text. The record's speaker prefix is dropped. - 2. Redoubt text to a hotshot carrier with its MC pending, first quote for $1M liability, federal filing, truck and trailer, September 2026 (internal record)
“Your quote came back and it's attached: $27,991 for the year if you pay in full, or $34,710 on a payment plan.”
Redoubt agency records, accessed September 29, 2026. The record's speaker prefix is dropped. Monthly figures on the page are the annual totals divided by 12. - 3. Call with a new MC holder buying liability only, June 2026 (internal record)
“Actually, right now, we just need the insurance, like, for the, you know, the auto liability only because, you know, for six months, we can't get the load.”
Redoubt agency records, accessed June 9, 2026. Call transcript, quoted as transcribed; the record's speaker prefix is dropped. - 4. Call with a first-year owner-operator waiting on his MC, July 2026 (internal record)
“So I gotta get insurance, but the problem about that is that truck's gonna sit for two to three weeks with just insurance in the driveway.”
Redoubt agency records, accessed July 14, 2026. Call transcript, quoted as transcribed; the record's speaker prefix is dropped. - 5. Underwriting reply to a Redoubt submission for a new carrier, October 2026 (internal record)
“According to the MVR, the insured has only had their CDL since 6/4/26. Cover Whale will not consider this driver.”
Redoubt agency records, accessed October 2, 2026 - 6. Call with a carrier about a year into its authority, October 2026 (internal record)
“I think the problem is having a new MC with a total loss puts me out of it pretty much everybody's underwriting.”
Redoubt agency records, accessed October 1, 2026. The caller's own account of the markets he tried; call transcript, speaker prefix dropped. - 7. Progressive Commercial, Commercial Truck Insurance Cost, national average
“The national average monthly commercial truck insurance cost with Progressive Commercial ranged from $734 for specialty truckers to $926 for transport truckers.”
progressivecommercial.com, accessed October 3, 2026. Progressive's figures for its own 2025 new for-hire truck policies. The page defines transport as truckers who haul goods such as general freight and autos. - 8. Progressive Commercial, Commercial Truck Insurance Cost, footnote to the average
“2025 new policy premium per power unit for liability and physical damage coverage for policies with no driver violations.”
progressivecommercial.com, accessed October 3, 2026 - 9. Progressive Commercial, Commercial Truck Insurance Cost, paid in full discount
“Most customers can save 10% or more when they pay their policy in full.”
progressivecommercial.com, accessed October 3, 2026. Progressive's statement about its own discount; its footnote says it is not available in all states and situations. - 10. Progressive Commercial, Commercial Truck Insurance Cost, USDOT authority
“Leasing to a company is usually cheaper than working under your own authority because it can help with:”
progressivecommercial.com, accessed October 3, 2026 - 12. Progressive Commercial, Commercial Truck Insurance Cost, coverage requirements
“Generally, the more coverage you need, the more your trucking insurance will cost.”
progressivecommercial.com, accessed October 3, 2026 - 13. Progressive Commercial, Commercial Truck Insurance Cost, driving history
“Accidents and violations impact commercial truck insurance premiums more than typical auto policies because large, heavy vehicles can cause more damage. Even a minor speeding ticket on a trucker's driving history can significantly increase your rate.”
progressivecommercial.com, accessed October 3, 2026 - 14. Progressive Commercial, Commercial Truck Insurance Cost, Smart Haul footnote
“Savings not guaranteed. At renewal, driving data could increase or decrease premiums.”
progressivecommercial.com, accessed October 3, 2026 - 15. Canal Insurance, Canal TestDrive, am I eligible
“Operating up to two trucks in the U.S. with less than two years in the business”
canalinsurance.com, accessed October 3, 2026. One item of Canal's eligibility list for its own program. The page introduces TestDrive as an option "designed to help new commercial trucking operations". - 16. Canal Insurance, Canal TestDrive, am I eligible, driving experience
“At least two years CDL driving experience Truck model 2000 or newer”
canalinsurance.com, accessed October 3, 2026. Two consecutive list items; line break collapsed. - 17. Canal Insurance, Canal TestDrive, am I eligible, adding trucks
“Insured may add trucks during the first policy year to total no more than four”
canalinsurance.com, accessed October 3, 2026 - 18. Canal Insurance, Canal TestDrive FAQ, are all my coverages calculated on a per mile basis
“Only the auto liability coverage is charged on a per mile basis. All other coverages (such as physical damage, cargo, or truckers’ general liability) will have a fixed premium that is divided into equal installments.”
canalinsurance.com, accessed October 3, 2026 - 19. Canal Insurance, Canal TestDrive FAQ, why do I owe different amounts each month
“Canal TestDrive is a pay-as-you-drive program, meaning we charge you based on the total miles your truck is driven each month. This includes mileage when you are not pulling a load.”
canalinsurance.com, accessed October 3, 2026 - 20. Canal Insurance, Canal TestDrive, benefits
“No monthly minimum premium OR interest No monthly paperwork on your end.* Low cost of entry Deposit is applied to your renewal policy”
canalinsurance.com, accessed October 3, 2026. Four consecutive list items; line breaks collapsed. Canal prints no rate per mile; its FAQ says the rate is in the policy packet. - 21. Canal Insurance, Canal TestDrive FAQ, how is my bill calculated
“Your invoice is a total of all your policy coverages with Canal plus any taxes and/or fees.”
canalinsurance.com, accessed October 3, 2026 - 22. Cover Whale, coverage guidelines, auto liability guidelines, experience
“Experience: 2 years minimum driving experience with like vehicle”
coverwhale.com, accessed October 3, 2026. Cover Whale's statement of its own underwriting standards; the same line appears under its physical damage and cargo guidelines. - 23. Cover Whale, coverage guidelines, auto liability guidelines, non-admitted states
“Non-Admitted States: AL, AR, AZ, CA, CO, DE, FL, GA, IA, ID, IN, MD, ME, MI, MN, MO, MS, MT, ND, NE, NH, NJ, OH, OK, OR, PA, RI, SD, TN, TX, UT, VA, VT, WA, and WV”
coverwhale.com, accessed October 3, 2026. Utah is not on the page's admitted-states list. - 24. One80 Intermediaries, Domestic Trucking Program sheet (V062026), submission requirements, loss runs
“Loss runs for 3 + current year (4 years) valued within the last 90 days (if applicable)”
one80.com, accessed October 3, 2026. A program manager's statement about its own program. - 26. One80 Intermediaries, Domestic Trucking Program sheet (V062026), submission requirements, new ventures
“If In Business for any amount of time less than 3yrs total, completed New Venture profile in addition to the Supp.”
one80.com, accessed October 3, 2026. The PDF sets "profile" with an fi ligature. - 27. One80 Intermediaries, Domestic Trucking Program sheet (V062026), highlighted features
“New Ventures considered. 2 year CDL minimum required for all drivers.”
one80.com, accessed October 3, 2026. Two consecutive items of a bulleted list; the bullet markers are dropped. - 28. One80 Intermediaries, Domestic Trucking Program sheet (V062026), highlighted features, paper
“All size operations considered (single unit owner operators and fleets). A- Rated Carrier / Non-Admitted paper.”
one80.com, accessed October 3, 2026. Two consecutive items of a bulleted list; the bullet markers are dropped and the PDF sets "fleets" with an fl ligature. - 29. Utah Code 31A-15-103(1), surplus lines insurance, unauthorized insurers (effective 5/3/2023)
“a nonadmitted insurer may make an insurance contract for coverage of a person in this state and on a risk located in this state, subject to the limitations and requirements of this section.”
le.utah.gov, accessed October 3, 2026. The sentence opens: when Utah is the home state as defined in Section 31A-3-305. - 30. Utah Code 31A-3-301(1)(a), tax imposed on surplus lines insurance transactions (effective 10/14/2025)
“An insurance transaction under Section 31A-15-103 is subject to a tax of 4-1/4% of gross premiums, less 4-1/4% of return premiums paid to insureds by reason of policy cancellations or premium reductions.”
le.utah.gov, accessed October 3, 2026. Section 31A-15-103 is the surplus lines section: a nonadmitted insurer's contract on a risk located in Utah. - 31. Utah Code 31A-3-301(1)(b), gross premium defined (effective 10/14/2025)
“"Gross premium," for a surplus lines insurance transaction, means the monetary consideration for an insurance policy including the fees charged to the insured, however designated.”
le.utah.gov, accessed October 3, 2026 - 32. 49 CFR 360.3T(f)(51), schedule of filing fees, insurance service fee, eCFR
“A service fee for insurer, surety, or self-insurer accepted certificate of insurance, surety bond, and other instrument submitted in lieu of a broker surety bond $10 per accepted certificate”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. eCFR marks § 360.3 "again suspended indefinitely" (87 FR 59035, Sept. 29, 2022); § 360.3T is the fee schedule in effect. Paragraph (f)(1) of the same schedule sets $300 for an application for motor carrier operating authority. - 33. 49 CFR 360.3T(a)(1), manner of payment, eCFR
“The service fee for insurance, surety or self-insurer accepted certificate of insurance, surety bond or other instrument submitted in lieu of a broker surety bond must be charged to an insurance service account established by the Federal Motor Carrier Safety Administration”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. eCFR marks § 360.3 "again suspended indefinitely" (87 FR 59035, Sept. 29, 2022); § 360.3T is the fee schedule in effect. Paragraph (a)(2)(i) says a bill for each account with activity is sent on its billing date each month. - 34. 49 CFR 360.3T(f)(1), schedule of filing fees, operating authority application, eCFR
“An application for motor carrier operating authority, a certificate of registration for certain foreign carriers, property broker authority, or freight forwarder authority $300.”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. eCFR marks § 360.3 "again suspended indefinitely" (87 FR 59035, Sept. 29, 2022); § 360.3T is the fee schedule in effect. - 35. 49 CFR 387.7(a), financial responsibility required, eCFR
“No motor carrier shall operate a motor vehicle until the motor carrier has obtained and has in effect the minimum levels of financial responsibility as set forth in § 387.9 of this subpart.”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. - 36. 49 CFR 387.9, financial responsibility, minimum levels, table title, eCFR
“The minimum levels of financial responsibility referred to in § 387.7 are hereby prescribed as follows: Table 1 to § 387.9—Schedule of Limits—Public Liability”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. - 37. 49 CFR 387.9, schedule of limits, row 1, eCFR
“For-hire (In interstate or foreign commerce, with a gross vehicle weight rating of 10,001 or more pounds) Property (nonhazardous) $750,000”
ecfr.gov, accessed October 3, 2026. Pulled from the eCFR versioner API as of 2026-10-01. Rows 2 to 4 set $1,000,000 and $5,000,000 for oil and hazardous materials. Last amended 91 FR 45660, July 21, 2026. - 38. TQL, Frequently Asked Questions for Carriers, what do I need to start hauling for TQL
“To haul for TQL we require: Valid MC or US DOT number Minimum $1 million auto liability insurance Minimum $100,000 cargo insurance policy”
tql.com, accessed October 3, 2026. A list on the page; line breaks collapsed. A broker's own requirement, not a federal one. - 39. Redoubt, Commercial Trucking Insurance page, our promise
“And when renewal comes around, we're already shopping on your behalf. You shouldn't have to chase your own broker.”
www.redoubt.insure, accessed October 3, 2026
A leased owner-operator is getting their own authority
Leaving a lease for own authority: what the new policy costs, lease-on versus own authority, and owner-operator coverage.
Elsewhere on the site
Got a new authority quote that looks too high?
Text Redoubt the quote, your USDOT or MC number, and the trucks and drivers it covers. We will go through what is in the price, what the payment plan adds, and which markets take new authorities for an operation like yours.
This is general insurance information, not legal advice or a coverage determination. The policy forms, the endorsements the carrier issues, and the requirement in writing from whoever is asking control.