COMMERCIAL AUTO FAQ
For California-based Delivery Drivers brokered by DriveForce
What is my first step?
Your first step is to acquire Commercial Auto Coverage. This can be acquired through SCI or through a service of your choosing. Acquiring the coverage will ensure that the next steps can be completed. You will need to acquire coverage that meets the minimum requirements for operation in CA. $300,000 CSL for vehicles under 10,000 lbs GVWR and $750,000 CSL for vehicles above 10,000lbs GVWR.
How do I apply for Commercial Auto through SCI?
1. Visit www.scidriver.com and login to your account
2. Select “Programs” –> “Commercial Auto”
3. Select “Sign Up”
4. You will be guided through the process of providing the necessary information to get a free quote for Commercial Auto. You will then complete the electronic signing process.
How much will this cost?
Most Owner Operators currently pay for INSEL coverage as well as personal auto coverage, a full commercial auto coverage will replace both coverages. The costs through SCI to the Owner Operator will be provided after you get your free quote. INSEL will no longer be available in California for current Owner Operators. A 24/7 Commercial Auto policy is needed, due to State and Local requirements, to obtain your operating authority in the State of California.
SCI can aid with the down payment plus any additional filing fees and this can be deducted from your settlement over a period of eight weeks.
Are there any time commitments to the Auto Insurance?
Should you cancel your Auto coverage through SCI, there will be an effective cancellation date. You will be responsible for premiums through that effective cancellation date. Typical effective cancellation dates are 35 days from the date you choose to cancel coverage in the State of California.
When should I get an LLC/INC?
We encourage Owner Operators to acquire their LLC AFTER December 16th, 2020 because the state of California is waiving the LLC Tax for 2021. This fee WILL start again in the 2022 tax year.
Will SCI have any support in helping me acquire the LLC/INC and the MCP?
SCI will have an announcement in the next 7 to 10 days about how we can support you in this process. We WILL have discount programs available to you to assist in obtaining all the legal documents and complete any processes to meet these requirements.
What is the last step?
You will need to apply for a CA #/Motor Carrier Permit using the same business name as you used to acquire your LLC/INC.