New MC Authority vs. Aged MC Authority:

22 December 2022

In the trucking industry, an MC authority could be considered your empirical score card. It’s a reflection of how you run your trucking business. The importance of maintaining a clean authority cannot be understated. In this article, we’ll cover how a new MC authority compares to an aged MC authority.  

Any new entrant that intends starting a trucking business (a trucking company or an owner operator) and wants to haul outside of their home state must procure an MC authority.  A new MC authority costs $300 across most states and the procedure to apply is drawn out in the FMCSA link here:

Consider that now, have a new MC authority and are geared for business with a clean MC that you can build a profitable, sustainable business around. However, there are some downsides to a new MC authority. Let’s do a quick comparison of the pros and cons around the operational aspects that MC authorities affect: 

New MCAged MC
Initial Investment$300 across statesCould be a substantial investment depending on the market and MC health -from $25,000
Insurance ratesHigher insurance rates for new MC authorities and CDL holders. Harder to find affordable insurance quotes.Insurance rates could be significantly lower in comparison to a new MC
Brokerage RatesNo hauling records puts new authorities lower on the Internal Carrier Ranking Systems that brokerages use to offer loadsA good safety and hauling record of an MC authority can put carriers on the top of ranking list allowing better paying and more frequent hauls.

As we can clearly see, an aged MC requires an acquisition from an existing trucking company and can be a significantly higher investment than a new MC authority. Depending on what your business goals are, both operations serve the purpose of starting up a trucking business. If you are getting into the business with multiple vehicles, an investment into an aged MC authority will allow you significant operational savings and higher returns.  
With over a decade of experience in the trucking industry consulting services, we at TruckStaff Solutions are adept with the transfer process and can help you make a better decision based on your individual/business vision.