Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

When a company has vehicles on the road, it’s important to understand all the commercial vehicle requirements in order to stay in compliance.

We recently had a client purchase a new medium-sized truck from a commercial dealership. A few weeks later, an employee driving that new vehicle was pulled over by the California Highway Patrol and fined for not carrying a Motor Carrier Permit (MCP). Our client immediately contacted Rancho Mesa confused by the citation. They have other similar trucks that they have been on the road for many years and never received a citation like this. To avoid a similar situation, it’s essential to understand the MCP and the types of drivers and vehicles that are required to carry one.

The MCP provides proof that the motor carrier is legally operating on California highways. In order to get a MCP, the Department of Motor Vehicles (DMV) verifies that the motor carrier has complied with all the requirements for both registration and insurance.  It includes specific information about the motor carrier (e.g. name, mailing address, USDOT number, California Carrier Identification number (CA #), and effective/expiration dates of the permit. MCP terms only last 12 months, so make sure not to miss the deadline. 

There are many drivers/companies that are required to have MCPs. If your drivers fall under any of these scenarios, they must have a MCP:

• Any person, business or entity who is paid to transport property in their motor vehicle regardless of the vehicle’s size, type or weight. This applies to for-hire carriers.

• Any person, business or entity operating a motor vehicle with Gross Vehicle Weight Rating of 10,001 pounds or more.  This applies to businesses transporting their own property (i.e., private carrier).

• Operators of any vehicle or a combination of vehicles transporting hazardous materials.

• Operators of a combination or a motor truck and trailer, semitrailers, pole or pipe dollies, auxiliary dollies, and logging dollies that exceed forty feet in length when coupled together.  For purposes of an MCP, a “trailer” excludes camp trailers, utility trailers, and trailer coaches.

While there are many scenarios where a MCP is required, there are still some instances where the MCP is not. A MCP is not needed for:

• Vehicles operated by household goods and/or passenger carriers.

• Vehicles operated by household goods carriers to transport used office, store, and institutional furniture, and fixtures when operated under a household goods carrier permit.

• Pickup trucks with gross vehicle weight rating of fewer than 11,500 pounds, an unloaded weight of fewer than 8,001 pounds, and equipped with a box-type bed not going over 9 feet in length when operated in non-commercial circumstances.

• Utility trailers, camp trailers, or trailer coaches.

• Vehicles providing transportation of passengers only, a passenger stage corporation transporting baggage and express upon a passenger vehicle incidental to the transportation of passengers.

• Vehicles used only for personal use and are 10,000 pounds gross vehicle weight rating or less.

• Two-axle daily rental trucks with a gross vehicle weight rating of  than 26,001 pounds when operated in a non-commercial use.

• Vehicles that are exempt from vehicle registration fees. These includes all publicly-owned vehicles, special construction equipment, special mobile equipment, and any other vehicle used primarily off highway and not required to be registered.

• Motor trucks or two-axle truck tractors with a gross vehicle weight of less than 26,001 pounds, when operated singly or when used to tow a camp or utility trailer, a trailer coach, a fifth-wheel travel trailer, or a trailer designed to transport a watercraft, and is never operated commercially.

There are potential fines for not carrying a MCP when its required. If a motor carrier caught operating with a suspended MCP, they could be fined up to $2,500, charged with a misdemeanor and/or receive up to three months in jail. The CHP may also find it necessary to impound the vehicle.

It is important to know the classification of your vehicle prior to purchase in order to determine whether a MCP filing is required. 

Manufactures classify their truck based on the Gross Vehicle Weight Rating government guidelines. The GVWR indicates the maximum truck weight plus what it is able to carry fully loaded. That includes the truck’s own weight plus the fuel, cargo, passengers, and even the trailer tongue. Typically, ¾ and 1 ton trucks are referred to as “heavy duty,” though they are technically classified as light duty vehicles.  MCP’s are typically required when your vehicle falls into the medium classification (GVWR 10,001-26,000). 

Do your due diligence ahead of purchasing the vehicle in order to know the specific licensing and permitting requirements.  Also, consider working closely with an insurance broker who can assist with the required insurance coverages and documents needed during the application process.

Rancho Mesa Insurance has extensive experience helping business owners with fleets of all sizes. If you need assistance with your commercial insurance needs, please contact me at (619) 937-0174 or via email at jhoolihan@ranchomesa.com.