You’ve made the decision to start your own hotshot trucking business, be your own boss, and you’re gonna do it without a CDL.
It can be done. Matter of fact, InterstateAuthority, who helps commercial drivers become legal in transporting goods across state lines, has been helping more non-CDL drivers lately.
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Also, the length is not a factor in determining if you need a commercial driver’s license. I’ve heard other drivers say the length is taken into consideration. Legally, weight, hazardous materials, and the number of passengers you’re transporting are the only factors.
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Overweight is considered when a single axle vehicle is over 20, 000 pounds, or a tandem axle vehicle is over 34, 000 pounds. There is plenty of hauling that can be done without exceeding those weight limits.
A commercial driver’s license is not needed to be a hotshot trucker. It all depends on the types of loads you haul. You don’t even need a gooseneck trailer to haul hot shot loads. Although I believe a gooseneck trailer is a good idea, you don’t need it to start. Upgrade once you’re bringing in some good money.
If you’re utilizing a vehicle with a gross weight of over 26, 000 pounds where the trailer, with or without a load, weighs more than 10, 000 pounds of the gross weight, a CDL is needed.
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Your first thought needs to be “can I keep my trailer, loaded or not, at 10, 000 pounds or less?”. Your motorized vehicle will most likely never weigh more than 16, 000 pounds. Include that with your 10, 000 pound loaded trailer, and you’re not exceeding 26, 000 pounds.
A DQF is required if your rig is over 10, 000 pounds. I define rig as your truck and/or trailer, loaded or not.
A DQF is also required, regardless of weight, if you’re transporting hazardous materials, transporting more than 8 passengers (including yourself) for compensation, or transporting 15 or more passengers (including yourself) regardless of compensation.
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If you intend to sign on with a carrier and not be responsible for finding your own loads, that carrier is liable for maintaining your Driver Qualification File.
If your max rig weight will be over 10, 000 pounds, which it will or you wouldn’t be looking into being a hotshot driver, or if you will be transporting 8 or more passengers for hire (include yourself in this count) or 15 or more regardless of compensation (include yourself), then you are required to have a medical card.
The medical exam (sometimes referred to as a DOT physical) must be administered by a physician who is listed with the National Registry of Certified Medical Examiners.
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Any health condition that has the potential to alter your ability to focus on the road and traffic around you will almost always get you disqualified. Heart conditions, epilepsy, inner ear diseases that cause dizziness, all have the potential to negatively effect your driving. As does vision or hearing loss.
Other conditions like diabetes and high blood pressure will be addressed by the examining physician and could, but not always, lead to a disqualification.
Once you passed the medical exam, you will then register for an EIN (employer identification number), also known as an FEIN (Federal…). This is your business’ social security number. Most shippers and freight brokers will require you to have a federal employer ID number, even as a sole proprietor with a non-CDL.
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Now that you have your DQF, your medical card, and your EIN, you can contact a company like InterstateAuthority for assistance with getting your motor carrier authority number (MC number), USDOT number, BOC-3, and UCR. Generally, these are the only registrations and licenses you’ll need if you’re staying under 26, 0000 pounds.
Once you have this ball rolling with InterstateAuthority, it will take roughly 21 days to be a legal hotshot freight hauler. Three weeks is the approximate time it takes for those things to process.
During this 3-week waiting period, you will obtain commercial auto insurance with liability limits of at least $750, 000. Tell your agent you want a $750, 000 combined single limit (CSL) commercial auto policy.
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You can ask for your uninsured/underinsured to be lower than the $750k, but just be sure it doesn’t drop below the value of your heavy duty truck and flatbed trailer. Uninsured and underinsured is what kicks in when another driver is at fault for the damage caused to your property and they don’t have enough coverage or none at all.
I highly recommend having full coverage commercial auto insurance. The only thing more expense than your commercial auto policy is your rig. Which is exactly why I recommend having more than just liability coverage.
If you are involved in an accident that prevents your truck/trailer from hauling loads, then you can’t make money. Not only does full coverage insure your vehicle, it’s essentially making sure you can continue with your hot shot trucking business.
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There are only a handful of companies that offer the best insurance rates for your hot shot business. I’m an insurance agent, but I’m not endorsing these companies. I’m simply offering you information.
There is also Great American, Canal, and I’m sure a few others. But overall, Progressive is the primary insurance carrier for your hotshot business.
I ran a survey in a very large hotshot trucker Facebook group. 94% of those who submitted the survey said they were with Progressive.
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I’m not sure why or how they have the market cornered like that, but they are doing something to attract hot shot drivers.
Auto insurance for the trucking industry is not cheap. However, insurance companies like Progressive offer a payment plan. Your typical down payment can range from $4500 to $7500.
Getting an insurance quote might be the best first step in becoming an owner operator hotshot business owner. If you can afford the insurance then you can probably handle all the other operating costs that come with running your own business.
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Let me motivate you for just a minute. Nothing worth having is easy to get. If you want a bigger reward then take a bigger risk.
If being a hotshot truck driver is on your bucket list, then work to make it happen. It’s an honorable job and a great way to get paid.
Take care of your equipment and you’ll keep your expenses low. Monitor hot shot load boards like it’s social media. Find good hauls that pay well.
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You can do this. Just look at the highway. There are hotshot drivers everywhere and there’s still not enough of them. There’s an ongoing driver shortage. The American Trucking Association says we’ll be short 175, 000 drivers by the year 2026.Just like with any other type of endeavor, starting a hotshot business involves careful planning and investment of your time, money and effort. You don’t want to waste them now, do you? Follow our step-by-step guide to start a hotshot business and you should be on the right track.
Many people are confused about the term hotshot or hot shot. It really means any flatbed trailer towed by a medium or heavy duty truck that delivers loads to local, regional or national locations. The tow vehicles are typically midsized-class 3, 4 or 5 trucks with four axles from RAM 3500. As an owner-operator, the responsibility of running the business lies on your shoulders. While you can work at your own pace, being your own boss means more responsibilities including balancing your finances, maintaining your rig, and finding potential loads.
Before you get started, you need to understand that you may experience financial pressure especially at the onset of the business as you try to get funding to buy your rig and have extra funds for operational costs. If you do operate your business right, the end result will be rewarding.
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You can take time off when you want. You can travel places. These are the privileges that you’ll get if you have your hotshot business. However, it could also mean spending more time on the road or missing important family occasions in exchange for more income opportunities. While on the road, most hotshot drivers sleep, shower and eat at truck stops. If you can handle this kind of lifestyle, then you are ready to be a hotshot business owner-operator.
The US trucking industry has a positive outlook with an expected growth rate of 2.3% per year from 2019 to 2024, according the ATA Chief Economist Bob Costello. However, before starting your own hotshot trucking business, check first the load ratio or density for your area of operation as well as the rates. You would want to be in an area where the demand is at least 18 loads per truck to give you the best negotiating power in terms of rates.
Rates per mile (rpm) vary with freight season. Peak season? You’re gonna love it! Save your vacation time during low season. On the average, rpm could be between $1.5 and $2.5. If you log 2, 000 for a particular week, you could earn at least $3, 000.
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Before you can finally enjoy the fruits of your labor, you have to first take into account your operating costs and repayments. The
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