The Story Your MCS-150 Tells

Your MCS-150 is no longer just an FMCSA compliance form. Insurance companies are comparing it against your policy, inspection history, and other public records to better understand your trucking operation. If the information doesn't match, it can raise serious underwriting concerns, delay renewals, increase premiums, or even lead to a mid term cancellation. We recently saw exactly that happen, and it's a lesson every motor carrier should understand.

For years, we've told trucking companies that insurance carriers are collecting more information than ever before. They aren't just looking at your application anymore. They're comparing public records, inspection history, loss runs, safety data, and FMCSA filings to build a complete picture of your operation. 

This week we had a client that proved exactly why that matters. 

A policy came across our desk with two power units and two drivers insured. During a routine review, the underwriter checked the are carrier's MCS-150 through the MOTUS system. It showed 5 power units and 5 drivers. They insured 2 trucks, 2 drivers.  This difference was enough for the insurance company to issue a mid-term cancellation for a material change in risk. No questions asked.  

Naturally, we called the customer because we assumed there had to be a reasonable explanation. We had no knowledge of more than 2 units on this account, ever.  

They told us they had intentionally increased the truck count because someone said it would help their CSA scores. The idea was that inspections would be spread across more trucks, making the scores look better. They also believed many other carriers were doing the same thing.  

Unfortunately, that advice was wrong. This does not “water down” the scoring per se, it’s a bomb that was just set off without realizing the impact. 

FMCSA doesn't simply divide inspections by whatever truck count appears on your latest MCS-150. Fleet size is averaged over time using multiple MCS-150 filings, along with reported miles traveled. The system was designed that way because trucking companies naturally buy trucks, sell trucks, and grow over time. If changing one number on one filing could erase the impact of poor inspections, every carrier would be doing it after a bad roadside inspection. 

That alone should be enough reason not to inflate your truck count. The bigger issue is how insurance companies view it. Instead of helping your CSA scores, you've now created a credibility issue with your insurance company

Underwriters Are Looking at the Whole Picture 

One thing we wish more motor carriers understood is that underwriters don't make decisions based on one document. They are trying to understand the operation as a whole. They compare your application, your MCS-150, inspection history, prior insurance, loss runs, and other available information to see if everything tells the same story. 

When those records line up, underwriting usually moves along without much trouble because every source of information tells the same story. When they don't, the questions start, and those questions can delay renewal, change pricing, or in this case, result in a mid-term cancellation.

If your policy says you operate two trucks, but your federal filing says you operate five; the underwriter isn't trying to figure out your CSA score. They're trying to figure out why the information doesn't match. Is the MCS-150 wrong? Is the insurance application wrong? Are there trucks operating that weren't disclosed? Has the business changed without telling the insurance company? 

Those are legitimate underwriting questions because their job is to evaluate the actual risk they're being asked to insure. 

Credibility Matters 

While we were reviewing this account, we also noticed the company had recently received several bad roadside inspections with multiple violations on both trucks. 

By themselves, inspections don't automatically create a cancellation. 

An incorrect MCS-150 by itself might not either.  

But underwriters don't review information one piece at a time. They are big picture, worst case scenario people.

So, recent inspections + policy unit count at 2 + federal filing showing five= No Dice. Each piece is a part of the story. When those pieces don't fit together, confidence in the information disappears really quick. It shifts to untrustworthy. If you are lying on your MCS-150 what else is false? 

Once that happens, the conversation changes. The underwriter is no longer asking, "Can we insure this account?" 

They're asking, "Can we trust the information we're being given?" 

This Isn't Being Ignored 

After speaking with the underwriter, we wanted to know whether this was an unusual situation or something they were starting to see more often. 

His answer surprised us. He said they see this type of discrepancy quite frequently. In his view, intentionally inflating the unit count on an MCS-150 to gain an advantage is essentially fraud because it involves knowingly providing inaccurate information on a federal filing. He also made it clear his company will not overlook those discrepancies. If they determine the information doesn't accurately reflect the operation, they are willing to cancel the mid-term policy. That creates another problem. Once a policy is canceled for this type of issue, every insurance company you approach is going to ask why, and your options can shrink quickly. That should get every motor carrier's attention. 

We're not saying every insurance company will handle it the same way. Underwriting guidelines are different from one carrier to another. What we are saying is that this underwriter viewed the discrepancy as serious enough to cancel the policy instead of waiting until renewal. 

That tells us the industry is paying closer attention than it used to. 

Your MCS-150 Is More Than a Compliance Form 

For a long time, many trucking companies looked at the MCS-150 as something you updated every couple of years because FMCSA required it. 

Those days are changing. 

Today, that filing has become another tool underwriters use to understand your business. It needs to match the operation you actually have. If you run two trucks, report two trucks. If you grow to five, report five. If you sell equipment, update the filing when appropriate. 

The goal isn't to make your company look bigger or smaller. The goal is to make sure every source of information about your business tells the same story. 

Our Take 

One bad piece of advice actually cost this trucking company its insurance.  Their carrier would not reinstate and shopping mid-term with a cancellation resulted in quotes are more than double his current pricing!   

What started as an attempt to improve CSA scores ended with a midterm cancellation because the insurance company believed the public records didn't match the risk they had agreed to insure. 

The insurance market is already challenging enough without creating problems that never needed to exist. Your application, your MCS-150, your inspection history, and your actual operation should all tell the same story, the real one. When they do, underwriters can focus on pricing your risk. When they don't, the conversation quickly becomes about credibility instead of coverage.

Before changing information on your MCS-150 because someone says it'll help your CSA score, ask yourself one question. Is it worth risking your insurance?

 

 

Disclosure

This article is for educational purposes only and reflects our experience working in the trucking insurance industry. It is not legal, financial, or insurance advice. Every trucking company is different, and insurance decisions should be based on your specific operation and policy.

The underwriting example discussed in this article reflects one actual account and one insurance company's underwriting decision. Other insurance companies may evaluate similar situations differently based on their own underwriting guidelines and appetite for risk.

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