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Occasionally, my husband and I get a request for our Sprinter limousine to go into the next state. Does the insurance company need to be notified before the run of this and/or does this increase your insurance in any way? Also, does the insurance typically request a DOT number to be on file?

These may seem to be silly questions to some, but I think I know the answer; where my husband is skeptical.

I run into this all the time with operators (both new starts and verterans) that tell me that it is ok that they cross state lines w/out federal authority because they didn't cross with passengers (it was a pick-up in the next state); they don't travel more than 75 miles; they only do it once in a while; etc.

If you cross state lines you are an interstate operation and therefore need federal authority unless your passenger transportation operation meets certain criteria (very specific) that exempts it from such.

I want some of what Kevin is smoking! Seriously, I was misinformed about the Vegas thing as well. It was explained the same way about drop offs and pickups. However, I was clearly corrected during a DOT audit when they found we had crossed state lines BEFORE we had DOT authority. We were issued a fine of $1600 for Conducting For-Hire Interstate Transportation without Authority.

If you cross state lines with passengers, you are in fact engaged in interstate commerce and must have DOT authority to do so.

Does anyone realize that Gaby has not posted here since September of 07 and this thread is nearly a year old?

I answered because I know Jim Martin is in Cali and that bad advice could hurt you in the wallet so better for me to share my unpleasant experience to save another Cali operator from my misfortune.

Common Reply


Hi
I don’t have so much idea regarding this subject. Just I suggest you to take steps accordingly.

quote:

Originally posted by Ryan_R:
I have heard from other company owners that even with California PUC intrastate authority you are allowed to cross state lines, say to Vegas, and drop off only. You are also then allowed to pick up the same people at the same location and return to California, but are not allowed to take them from location to location within the foreign state. Is this correct?

I believe this to be true, but I cannot quote any authority. I had heard it put exactly the same.

Though the only time I had my limo in Vegas was to take my family there for the limo show 4 years ago.

I have heard from other company owners that even with California PUC intrastate authority you are allowed to cross state lines, say to Vegas, and drop off only. You are also then allowed to pick up the same people at the same location and return to California, but are not allowed to take them from location to location within the foreign state. Is this correct? I have no burning desire to drive people to Vegas but would be good info to have.

This was a good suggestion that you put up here...dude…..hope that it benefits all the ones who land up here.

quote:

Originally posted by Dean Schuler:
Have all the permits you need to play by the book.

This is the best advice. Simple, to the point.

Have all the permits you need to play by the book.

quote:

Originally posted by Blue Diamond:
I know this in an old thread, but info is info..

As an intra and interstate carrier, I know you are also required to obtain and fill out a BOC-3 form and obtain a Processing Agent. (this company acts as your middle man with the insurance company if an accident or injuries occur out of your state.) This only applies to "commercial" rated vehicles with passengers over 11.

Just an FYI. The DOT will let you know this sooner or later. I was asked for proof back in my Federal DOT Inspection.

The BOC-3 filing doesn't have anything to do with insurance. The insurance company files its own insurance filing (Form 91X).

The process agent is there to act as a representative for you in the respective state.

If Oklahoma (just using this as an example no offense to OK) doesn't like the way your limos are painted and they want to sue you, they subpoena the process agent for you located in that state who acts as your representative. Or if you get a ticket and you do not pay the fine, etc.

I have seen a lot of people that apply for their own authority and do not involve a process agent (who has a blanket) and they lose their authority and they have to reapply and pay the app fee again.

I know this in an old thread, but info is info..

As an intra and interstate carrier, I know you are also required to obtain and fill out a BOC-3 form and obtain a Processing Agent. (this company acts as your middle man with the insurance company if an accident or injuries occur out of your state.) This only applies to "commercial" rated vehicles with passengers over 11.

Just an FYI. The DOT will let you know this sooner or later. I was asked for proof back in my Federal DOT Inspection.

quote:

Originally posted by Cougars 2 go:
Interesting topic as this brings something to mind where I work.
What about folks who commute between states and offer carpool service with their Sprinter?
It seems that they would fall under the same regulations as limo companies. Is that correct or is there some sort of large leniency to carpool service companies?
It's just one or two guys running a couple Sprinters between Maryland and PA who work at the destination.

Exemptions to Minimum Financial Responsibility Regulations do not apply to:

A motor vehicle transporting only school children and teachers to and from school
A motor vehicle providing taxicab service, having a seating capacity of less than 7 passengers, and not operating on a regular route or between specified points
A motor vehicle carrying less than 16 individuals in a single daily round trip to commute to and from work

quote:

Originally posted by Cougars 2 go:
Interesting topic as this brings something to mind where I work.
What about folks who commute between states and offer carpool service with their Sprinter?
It seems that they would fall under the same regulations as limo companies. Is that correct or is there some sort of large leniency to carpool service companies?
It's just one or two guys running a couple Sprinters between Maryland and PA who work at the destination.

If they are taking payment for the service, then they are "for-hire carriers," and under Maryland PSC regulations must be licensed.

Check either the lower right front windsheild, or the driver's side of the vehicle, just under the driver's window, look for a yellow sticker about 2x2 inches square. If that have one, they are at least PSC approved carriers.

The sad fact is that there are exactly 10 employees in the Transpotation Division, so the chances of these operators getting caught are slim at best.

My bet is that the DOT would take a dim view of their operations.

Interesting topic as this brings something to mind where I work.
What about folks who commute between states and offer carpool service with their Sprinter?
It seems that they would fall under the same regulations as limo companies. Is that correct or is there some sort of large leniency to carpool service companies?
It's just one or two guys running a couple Sprinters between Maryland and PA who work at the destination.

To cross state lines there is now a UCR (uniform carrier registration). I posted a thread on this issue just this week take a look at it.

In regards to the DOT, you will be audited within the first year of obtaining your authority, I have also posted the letter that is faxed to the authority holder about three weeks prior to the physical audit; do a search for DOT audit.

Sal is right, you must have all of the information on hand at all times, and by keeping good records and files, will make not only an audit run smoother but also your business operations as well.

The limit of liability insurance required is based on SEATING capacity, not passenger cappacity.

1-15 = $1.5mm
16+ = $5mm

*Theoretically: If your Sprinter has a pass pax of 14 it has a seating capacity of 16 because the front two seats add 2 which means that the liability limit required is $5mm.

You may remove the front passenger seat (which is what QVM builders do in order to reduce the seating capacity by one. This can help by keeping a 14 pax under the 16 benchmark.

In regards to your insurance carrier they need to know your operating radius. Some companies have strict operating radius' which mean that if you say 75mi is your radius then thats it, no more. Others may not.

It used to be that insurance companies would write coverage for someone that was operating interstate adn they would not require that you have your authority. Now, there are more companies that will not provide coverage without authority or without the insured applying for authority. There are some companies that just don't care, I like working with companies that do require it because it makes operators become compliant and play by the rules.

Whether or not you have coverage thats a tough one, I say that an operator should not have coverage because by law, they were not operating legally.

And if this doesn't make you think twice before crossing state lines, there are heavy fines associated with being caught by a competent law enforcement officer that knows the law.

Working interstate (across state lines) means you must obtain DOT MCX numbers, and meet all DOT requirements, with regard to your particular type of operation.

DOT compliance involves, random drug testing, employee (including yourselves) applications on file, background checks conducted, safety and maintenance records on all vehicles up to date, an official safety program in effect and documented, driver logs filled out completely and correctly, and a myriad of other little things that must be in order. (In anticipation of the complete audit that you will suffer through within about 6 months.)

I can't recall which publication it was, Limousine Digest or LCT, but one of them recently had a good article on DOT certification and getting ready for an audit.

Typically, you will need a minimum of 1.5 million insurance on each vehicle you operate interstate, (larger vehicles-15 or more capacity, including driver- require 5 million in coverage) and yes, your insurance carrier will almost certainly raise your rates, as their exposure is increased along with your expanded area of operations. (Limo Insurance King would know better, and I sure will correct me if I have my numbers wrong.)

How much? When I expanded form Maryland only to the DC-MD-VA Commercial Zone controlled by the WMATC, my rates went up about $350 a year per car.

Don't even think of operating interstate without the proper certifications. Were you to have an accident, and be operating illegaly, your insurance carrier may well not be liable for the loss.