New authority
A new authority is a recently established motor carrier, typically within its first year, a status that affects insurance pricing and which brokers will tender freight.
Last reviewed · by the Fleetchart team
Many brokers and shippers apply a minimum age requirement before working with a carrier, and insurance is priced higher until a record exists.
The practical consequence is that a new authority's first year is often its thinnest, which makes accurate cost knowledge more important rather than less.
For example, say a new carrier pays $18,000 a year for insurance, while a carrier with a few clean years pays $12,000 for the same coverage. Over 100,000 miles that is $18,000 ÷ 100,000 = $0.18 a mile against $12,000 ÷ 100,000 = $0.12, so the new carrier needs 6 cents more on every mile just to keep up. Now say some brokers will not work with you yet, and you take a load at $2.30 a mile instead of $2.50. Over 1,000 miles that is 1,000 × $0.20 = $200 less.
This is why a new authority should know its cost per mile before it books a single load. A clean first year of on-time loads and paid bills is what opens up more brokers and better insurance prices later.