FAQ: FMCSA Registration Overhaul and Insurance Implications
- What is the FMCSA doing with MC numbers?
The FMCSA plans to retire MC numbers entirely in 2025 and rely solely on USDOT numbers for all identification purposes. - Why is FMCSA changing the registration system?
The goal is to combat rampant fraud, streamline the registration process, and improve the accuracy of safety and compliance data. - How will this affect existing carriers and brokers?
All existing entities will be re-verified. Those who do not pass identity and business verification could face revocation. - Will there be stricter identity checks?
Yes. New applicants will need to pass photo ID and business verification, including location checks, using third-party verification tools. - Is it legal to sell an MC number?
No. FMCSA allows the sale of entire businesses but not the standalone sale of MC numbers. - How does this help prevent fraud?
The new system adds multi-factor authentication, restricts registration to legitimate business addresses, and flags suspicious entries in real time. - What is Cogo Insurance’s role in this landscape?
Cogo Insurance helps legitimate carriers and brokers secure affordable, compliant insurance coverage tailored to their operational needs. - What happens if my contact info is outdated in the FMCSA system?
The USDOT number could become inactive if critical info like the MCS-150 form or UCR fees are missing or outdated. - Will BOC-3 agents have to verify their role?
Yes. The system will include dedicated BOC-3 accounts to increase transparency and legitimacy. - When will the new system be live?
Initial changes are rolling out now, but the full overhaul is expected to launch by October 1, 2025.
FMCSA Modernizes Registration to Fight Fraud and Improve Safety: What Carriers Should Know
The Federal Motor Carrier Safety Administration (FMCSA) is in the middle of a sweeping overhaul of its registration system, a move that will eliminate MC numbers, modernize digital identity verification, and create a stronger defense against the freight fraud epidemic gripping the trucking industry.
For decades, MC numbers have served as a primary identifier for brokers and carriers. However, with fraud schemes increasing at alarming rates, FMCSA has decided to consolidate identifiers under a single USDOT number per entity. This update isn’t just cosmetic—it aims to tackle systemic abuse, including fake identities, shell registrations, and misuse of dormant carrier authority.
The transition comes after rising concerns from the industry and watchdogs, as well as data showing a 600% surge in cargo theft and growing reports of double brokering. Investigations revealed registrants listing virtual addresses or P.O. Boxes as their official place of business—details easy to falsify and hard for regulators to validate. In extreme cases, entities mocked the system with names and emails clearly meant to game FMCSA’s oversight.
To shut down these exploits, FMCSA is launching a tiered verification system. This includes real-time identity checks using government-issued IDs and biometric verification (like selfie-ID matching), along with strict requirements for listing a valid business address. New contracts with third-party vendors will support these tools and ensure thorough vetting of both new applicants and the 800,000+ existing carriers and brokers.
A dedicated Registration Fraud Team has also been formed to assist victims of identity theft and address misuse of company credentials. This team will respond directly to fraud complaints and reset compromised profiles.
Meanwhile, FMCSA is actively auditing its database to root out bad actors and plans to reverify every entity—carriers, brokers, freight forwarders, BOC-3 agents, and more. Those unable to pass the new standards will face deactivation. These audits already show results: weekly fraudulent PPOB (principal place of business) registrations dropped from 45 to just 3 in a matter of months.
Other enhancements include multi-factor authentication, real-time validation of form fields, and eventually, a fully mobile-friendly registration portal. Carriers will no longer have to re-enter the same information multiple times. Automated weekend and holiday processing will improve turnaround times.
Also coming: suffixes to USDOT numbers to replace MC numbers. For example, suffixes will distinguish between freight, passenger, or hazmat carriers. These suffixes will not be required on vehicle markings but will provide backend clarity for enforcement and compliance purposes.
The changes carry insurance implications, too. Once FMCSA expands its regulatory reach to private hazmat and exempt-for-hire carriers, these entities will need to file insurance documentation and designate BOC-3 process agents for the first time. For insurance solutions tailored to your business model, Cogo Insurance stands ready to help. Whether you’re transitioning through the registration updates or onboarding a new fleet, Cogo can assist in securing proper coverage that meets FMCSA’s expanding requirements.
Furthermore, carriers looking to buy or sell a company need to understand the FMCSA’s stance: while the agency allows full business transfers (including trucks and operational assets), it does not recognize the sale of a standalone MC number. Entities that attempt to trade just the number may be flagged for regulatory violations and potentially referred to law enforcement.
Cogo Insurance advises all carriers to keep their records up to date and ensure their registrations comply with the latest guidelines. With FMCSA increasingly proactive, failing to meet verification criteria can quickly lead to shutdowns or enforcement action.
Takeaways for Fleets and Brokers:
- Expect your USDOT number to become your sole FMCSA identifier.
- Don’t rely on P.O. Boxes or virtual addresses—they’ll likely be flagged.
- Prepare for digital ID verification and mandatory business documentation.
- If your data is outdated, update it now to avoid deactivation.
- Fraud victims should immediately contact FMCSA’s registration fraud team.
FMCSA’s next major stakeholder outreach event is scheduled for October 21, 2025. If you have questions about compliance or want to make sure your operation is prepared, reach out to Cogo Insurance. We’re here to help you navigate these regulatory changes while keeping your business fully protected.
