What Is MCP in Auto Insurance?
California law requires operators of many commercial vehicles to obtain a Motor Carrier Permit, or MCP. To get an MCP, a business must demonstrate that it has adequate commercial auto insurance.
Other People Are Reading
-
Significance
-
A California business must have an MCP if it uses any motor vehicle, regardless of size, to carry property for pay. A business also needs an MCP if it uses any vehicle over 10,000 lbs. to carry its own property.
Insurance
-
To obtain an MCP, a business must prove that it has commercial auto liability insurance. The required coverage depends on the type of vehicles the company has and what they carry, but range from $300,000 to $5 million or higher.
-
Alternative
-
Some businesses can "self-insure" for MCP purposes, meaning they pledge to pay any claims out of their own pocket. To be eligible, the business must operate a fleet of at least 25 vehicles, its required coverage must be $755,000 and the business must have no unpaid judgments against it for damage or injuries from previous accidents.
Documentation
-
Businesses must submit proof of coverage with an MCP application. The California DMV accepts one of three documents: a Certificate of Insurance, Form DMV 65-MCP; a surety bond, DMV 55 MCP; or a Certificate of Self-Insurance, DMV 131 MCP.
-
References
Resources
- Photo Credit truck delivery sign image by Adkok from Fotolia.com
