Canceling a Trucking Policy With Federal Filings

The Real Rules for Canceling a Trucking Policy With Federal Filings

Most carriers think they can just call their agent, say “cancel my policy,” and be done.
If only it worked like that.

When your trucking policy has federal filings, cancellation isn’t instant, and it’s not controlled by your agent or your insurance company alone.

With current market conditions, we’ve been getting more calls from carriers looking to cancel mid-term, switch programs, or shut down their authority. But when that 35-day rule kicks in, a lot of insureds are caught off guard and frustrated because they forgot how the process works.

The 35-Day Rule

Once your policy with FMCSA filings (like a BMC-91) is marked for cancellation, your insurance carrier is required by law to give the FMCSA 35 days’ notice before that cancellation takes effect.

That means your policy stays active and yup, billable for 35 days after the cancellation request.

It doesn’t matter if your truck is parked, leased out, or out of service.
If your authority is still active and your filing hasn’t been replaced, your insurer is still on the hook… and so are you.

Why It Works This Way

Federal filings connect your insurance coverage directly to your operating authority.
They show the FMCSA (and anyone looking up your DOT record) that you meet the federal minimums for liability and cargo coverage.

The reason for that 35-day window is simple: public safety.
It gives the motor carrier time to secure new coverage so there’s no gap that leaves the public exposed to accidents or negligence.

This rule, outlined in 49 CFR Part 387.7 and 49 CFR § 387.31, prevents carriers from operating uninsured and ensures continuous compliance with federal financial responsibility requirements.

Revoking Your Authority the Right Way

The temporary COVID-era exemptions are gone, and now you must complete the full, paperwork process to revoke your MC authority.

To officially shut down your authority, you must:

Complete Form OCE-46 (Request for Revocation of Operating Authority).
Have it notarized.
Submit it to the FMCSA for processing.

A lot of carriers avoid revoking their authority because they “might come back later.” But here’s the thing, once your insurance cancellation posts to SAFER, your MC number will be automatically revoked for noncompliance. That’s not a good look.

It’s always better to voluntarily revoke your authority than to have it revoked for failing to maintain insurance. A voluntary revocation keeps your record cleaner and makes it easier to reactivate down the road.

Until that revocation is filed and accepted, your authority is still active, your filings remain in place, and your insurer must keep the policy open.

So if you’re shutting down or switching coverage, handle that OCE-46 paperwork or the clock starts on that 35-day countdown.

How to Avoid Paying for Dead Time

If you’re switching insurance companies or closing up shop, timing matters.

Don’t cancel your old policy until your new one’s filings show as active.
If you’re closing your authority, file and notarize your OCE-46 right away, then call to cancel and let your agent know you have revoked. We can cancel effective the day the revocation posts to the FMCSA website.
Confirm your cancellation date in writing so you’re not stuck paying for extra days.

Until your authority is revoked or your new filings replace the old ones, you’ll keep being charged for coverage, even if you’re not hauling.

What a Good Agent Should Tell You

A good agent will explain all this before you ever buy your first policy.

When you’re setting up your authority, they should walk you through how FMCSA filings work, what happens when you cancel, and why that 35-day rule exists.

If your agent never mentioned OCE-46, filings, or federal notice requirements, they left out some key details that could cost you money later.

The Bottom Line

Trucking policies with federal filings can’t be canceled overnight.

Insurance carriers must give 35 days’ notice to the FMCSA, and revoking your authority requires a notarized OCE-46 form.

If your filings stay active, your policy stays active and so do your payments.

Before you cancel, make sure your filings, paperwork, and timing all line up.

Otherwise, you’ll be paying for insurance you thought you already canceled.

Call us for affordable coverage you don’t have to cancel, duh.
254-294-7798 | info@trucku.biz

Disclosure:
This post is for educational purposes only. It is not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it.

All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.