Start
How to start a cargo van business: what it costs and what to do first
Updated
A cargo van under 10,001 lb stays outside the federal medical card and hours-of-service rules. Hauling other people's freight across state lines for pay still takes MC authority, a BOC-3, UCR and liability insurance on file. The federal floor for an all-light fleet is $300,000, and TQL, which lists Sprinter service, asks for $1 million.
At a glance
- Weight line
- Under 10,001 lb: no federal medical card or hours rules
- MC authority
- $300 per authority type
- Federal liability floor
- $300,000 for an all-light fleet
- UCR
- Lowest bracket: $46 for 2026, $55 for 2027
What changes under 10,001 lb
The rules follow the van's gross vehicle weight rating (GVWR) and its loaded weight. A Sprinter badge or any other model name sets no weight class. When both the rating and the loaded weight stay under 10,001 lb and you don't tow a trailer that pushes you over, the federal medical card and hours-of-service rules don't reach the van.
General freight in a light van needs no CDL, though placardable hazardous materials can.
You skip the drug and alcohol consortium, since those testing rules cover CDL-required operations. IFTA and apportioned plates start over 26,000 lb or at three axles on the power unit, and Form 2290 starts at 55,000 lb, so none of them reach a light van.
Add a trailer or load the van past 10,001 lb and it crosses the line. From there you need a medical card, hours-of-service compliance and logs, even with no CDL. Read the GVWR on the door label before you buy, since it decides which list you're on.
What stays the same: authority and filings
For-hire authority applies at any weight. If you haul other people's freight across state lines for pay, you apply for MC authority in FMCSA's Motus system at $300 per authority type.
You also need:
- A BOC-3. A process agent files it for you. Three published prices ran from $20 one-time to $125 a year. The $20 one can add a $67 mailing charge if you don't acknowledge electronic service within 10 days.
- Liability on file. An all-light fleet hauling nonhazardous freight under authority needs at least $300,000. Your insurer files the proof with FMCSA. A certificate of insurance emailed to a broker doesn't put that filing on your record.
- UCR. A van carrier with MC authority ordinarily pays the lowest bracket, even with no vehicles that count toward UCR. That's $46 for 2026 and $55 for 2027.
You apply directly in Motus, which you reach by typing motus.dot.gov into your browser.
What it costs to start
| Cost | Amount | Basis |
|---|---|---|
| MC authority | $300 | FMCSA, per authority type |
| BOC-3 | $20 one-time to $125 a year | Three process agents' published prices |
| UCR | $55 for 2027 | Lowest bracket |
| Direct Freight load board | $39 to $69 a month, or a $0 tier limited to three calls a day | Its own plan comparison. No MC number needed to use it |
| Load Work load board | $65 to $249 a month on sale, $99 to $349 regular | Requires active MC authority, a DOT number and insurance |
| DAT load board | $59 to $339 a month | Published plans, per user |
| Insurance | One owner report: about $750 a month | General liability and auto |
These prices date from October 2026. Bring your van's price to the estimator. It asks for that number and adds the rest.
Insurance for a cargo van
The $300,000 federal floor is what FMCSA requires, and brokers usually ask for more. TQL lists Sprinter service and asks for $1 million in auto liability and $100,000 in cargo.
Broker freight is where a van's limit jumps: 20 of the 21 brokers that publish a liability minimum on their own pages want $1 million or more. If you plan to haul broker freight, get your quotes at those limits.
One cargo van owner in the forum reports gave a figure: about $750 a month for general liability and auto insurance, with no limits given. Treat it as one person's bill.
Price the limits brokers ask for. The startup cost estimator holds a cargo van quote comparison. Startup cost estimator
Where cargo van loads come from
- TQL lists Sprinter service among its equipment. Standard pay is 28 days, with quick pay at 5% for one day or 3% for seven days.
- Van-focused boards. Load Work and Sylectus build around cargo vans and straight trucks. Sylectus lists its plans without prices, so ask for a quote.
- Direct Freight has a cargo van filter and lets you search without an MC number. Hauling interstate freight for pay still takes MC authority.
- Broker waits. C.H. Robinson will consider a new van carrier after seven days of active MC authority, while Ryder waits 60 days and Mode Global and Penske Transportation Management wait a year.
For the load side, see cargo van loads and cargo van insurance. To weigh running under someone else's authority first, see lease on or own authority.
See your start-up number. Enter your van price, state and insurance quote. The estimator adds the filing fees, UCR and the board you pick, then totals the cash you'll need before the first broker pays. Startup cost estimator
Frequently asked questions
Do you need MC authority for a cargo van?
Yes, if you haul other people's freight across state lines for pay. For-hire authority applies at any weight, and it costs $300 per authority type.
Do cargo van drivers need a medical card?
Not when both the rating and the loaded weight stay under 10,001 lb and no trailer pushes you over. Add a trailer or load the van past 10,001 lb and you need a medical card, hours-of-service compliance and logs, even with no CDL.
How much insurance does a cargo van need?
FMCSA requires at least $300,000 in liability for an all-light fleet hauling nonhazardous freight under authority. TQL asks for $1 million in auto liability and $100,000 in cargo, and 20 of the 21 brokers that publish a liability minimum ask for $1 million or more.
Do you need a CDL for a cargo van?
Not for general freight. Placardable hazardous materials can require one.