FMCSA Announces New Regulations for Leasing Companies

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FMCSA has announced new regulations that apply to charter bus companies that sub-contract their services with other companies, or use other charter bus companies in the course of their business. New regulations will require charters booked with one company but pulled by another company, in full or in part, have a documented lease on file between the 2 companies and proof of insurance.  Charter agreements between the two companies are not considered leases.  This must be a separate document.

Large companies, like Cline Tours, will not be easily affected this due to the size and scope of our operations. Small companies will have to do things that they are totally unfamiliar with and not equipped to implement.  Their main issue will be with insurance.

In the past there have been no charges between charter companies for insurance, since this was not a federal requirement. Now these companies are going to have to provide insurance for any buses they sub-contract from another company. Besides being an inconvenience, they will have to pay $50.00 to $100.00 per day in insurance charges, just for using another company’s bus.

If the operator fails to add the insurance, theoretically, the charter would be running with no insurance and in violation of DOT regulations. If a DOT officer performs a random check of the motor coach,  and all of the required documents are not in place, the motor coach will be placed out of service.  This means that passengers will be without a bus until another bus can be put in place.

If you are planning to book a trip with a motor coach operator, you need to be aware of these requirements.  This is one of the pitfalls of using a company without the resources to provide their own buses.

Don’t be stranded, use Cline Tours.