Question:
When a person applies for their MC number and pay their $300 it is important to know the difference between a "Common" and ""Contract" motor carrier. The application fee is the same. However, there are different insurance filing requirements.
list the different types of carriers and the application process.
list the insurance requiresments for "Common" carriers.


Answer:


In addition to the "Cargo" insurance "Common" carriers are required to file. Common carriers may also be required to have a tarriff book of freight charges:


Answer:


The issue caused a carrier some problems. The carrier had to purchase special insurance to transport travel trailers. Since the carrier applied as a "Common" carrier the FMCSA would not process the carrier's application without the carrier's insurance company providing proof of cargo insurance. The carrier was upset because the cost of the special insurance for travel trailers was more costly than standard cargo insurance. The cargo insurance would have been an un-necessary expenditure.
To simplify the application process and eleminate carriers' obligation to file cargo insurance I would encourage new carriers to file as a "Contract" carrier. I am not saying shippers may require carriers to have cargo insurance. However, it will eliminate the need to file cargo insurance with the FMCSA.
I would recommend consulting a transportation attorney, some licensing agencies are not as knowledgible as they should be regarding the application process. As usual it's buyer beware.
Be safe.

Answer:

It is my understanding that the Feds no longer make a difference between contract and common carriers other than the cargo insurance requirement.

Answer:

Although the Motor Carrier Act eliminated the distinction between common carriers and contract carriers (there are only motor carriers) FMCSA registration forms contain the distinctions. That way they can charge an extra fee if an applicant registers both as a common carrier and as a contract carrier. Despicable.

Answer:

Yes, as far as the FMCSA is concerned the insurance filing is the only difference. If you are getting your own authority I would reccomend getting the contract carrier authority. I got my authority myself and selected common just because I though the description applied to me better. When it was time to renew my insurance a year later the FMCSA revoked my authority because the insurance company took to long to file the cargo. It was a big mess.

Answer:

I believe a common carrier will use all of his equipment (car & trailer) , and be a self entity (Company), thus the load and company must be insured. A contract carrier leases his equipment (car, or and trailer) and will fall under company insurance that leased on to..
Pls tell me if I'm wrong...

Answer:

Does it really matter any more?