If you got a past-due notice, or your policy has already been canceled, the most useful thing you can do is pick up the phone. A cancellation does more damage in trucking than in most businesses, because your insurance and your authority are tied together. This article explains how, in plain language. It is general information, not legal advice.

How a non-payment cancellation usually unfolds

  1. A payment is missed. A late charge may apply, as shown on your agreement.
  2. You get a notice. On a financed policy, the finance company sends a Notice of Intent to Cancel, with a copy to your agent. It shows the amount due and the date it must be received.
  3. The policy is canceled. If that amount is not paid, the finance company can ask the insurance company to cancel the policy.
  4. FMCSA is notified. The insurance company files a notice of cancellation with FMCSA, commonly Form BMC-35.
  5. Your authority is at risk. If a replacement filing is not on record in time, FMCSA can revoke your authority.

If your policy is paid directly to the insurance company instead of financed, the notices come from them, but the effect on your filing is similar.

What the BMC-91 is

Form BMC-91 or BMC-91X is the certificate of insurance your insurance company files with FMCSA to show your required liability coverage is in place. For a for-hire interstate carrier hauling nonhazardous property in a vehicle of 10,001 pounds GVWR or more, the federal minimum is $750,000 (49 CFR 387.9).

The filing and the policy are two different things. The filing may still show on the FMCSA record for a while after a cancellation process has started, because filings have their own notice process. Do not treat your FMCSA record as proof you are covered, and do not treat that notice process as extra time to pay. Ask your agent for the actual status of the policy.

What the MCS-90 is, and what it is not

The MCS-90 is an endorsement that protects the public. It is not coverage for you. Truckers often misunderstand this, so here are the key points:

  • It can require the insurance company to pay an injured member of the public on a judgment, even when the policy would not otherwise cover the loss.
  • If that happens, the endorsement lets the insurance company seek reimbursement from you.
  • It does not pay to fix your truck, and it does not cover cargo or injury to your own employees.
  • It is no substitute for a policy in force.

Bottom line: an MCS-90 on an old policy is not a reason to keep running.

What happens to your authority and your business

  • You cannot legally operate without coverage. Federal rules say no motor carrier may operate without its required financial responsibility in effect (49 CFR 387.7).
  • Your authority can be revoked. Getting it back can mean a new filing, a reinstatement request and fees.
  • Brokers and shippers notice. Many check insurance status and may stop giving you loads.
  • A claim could land on you personally or on your business. Without a policy, you may be left paying for a loss yourself.
  • The next policy may be harder to get. A cancellation for non-payment can come up when you shop for new coverage.

How to stay on the road

  • Before the date on the notice: call us at (214) 586-3155 as soon as you know a payment will be late. Pay the amount stated on the notice, not just one installment.
  • Tell your agent. They get a copy of the notice and know your policy.
  • If the policy is already canceled: stop and ask before you dispatch. Whether it can be reinstated is up to the insurance company, not the finance company. Some will reinstate, and others will require a new policy.
  • If you need a new policy: get it bound and make sure the new insurance company files with FMCSA. Then check the FMCSA record yourself.
  • Keep your address, email and phone current. Notices go to the contact details on your account.

What about the money?

After a cancellation, the insurance company generally returns any unearned premium to the finance company, and it is applied to your account. If that does not cover the balance, you may still owe the difference. You may have rights under Texas law; ask us. See also what happens when you miss a payment.

Talk to us

The earlier you call, the more options there usually are. Call (214) 586-3155 or contact us. Hablamos español.

NatPrem finances insurance premiums. We do not sell insurance. If you still need a trucking insurance quote, our sister agency, Protec Consulting Group, can help.