We are considering getting own authority, but....

I would say the first thing to figure is what would the insurance cost. Call around and get prices, including cargo. Then figure if that is 10% or less of what you are "certain" you can gross a year on your own. The costs after that are small, just some paperwork you need to keep up on. Good luck.

 

Keep in mind the legislation they are trying to push through that would raise insurance minimums.

 

yep. a lot of people making the jump to o/o right now is a crazy idea till the insurance thing finishes up.

that new insurance premium will put most out of business faster then it took to get started.

 

As a brand new authority, a $1,000,000 liability policy costs me $7,000/year. $5,000,000 liability would have cost $12,000/year. That's 5 cpm -- significant, but not crippling.

 

Is it worth it ? Well, how much more does it cost you, and how much more do you stand to make ?

additional cost would be insurance as mentioned, and trailer if you don't have one. You will have other relatively small costs but additional time spent with authority, UCR, SCAC, drug consortium, driver file, billing and collections.

You will have to wait longer for your money, meaning you may have up to $35,000 in outstanding invoices at any time that would have previously been money in your pocket.

Does your current company advance fuel money then take out of your settlements ? Add another $5,000 to the bankroll needed.

But the biggest factor will be what sort of miles and gross to the truck are you getting now vs. how much will you generate with your own authority ? You may have to sacrifice volume of work for better paying work, especially the first year or two. Connecting the dots and creating a customer base for yourself that comes together into a reliable plan takes time. If the carrier you are leased to has good accounts and you are doing fairly well with them I would say it will be tough for you to make it worth it, especially in the beginning. If they are not so good, it may be worth it but you will have to put a lot of time into it. It is kind of fun though !

 

Who are you insured with of you don't mind me asking

 

Local agent. The underwriters are global hawk & lloyds (can't remember which is which)

 

I wouldn't go any other way than having my own authority. I enjoy the freedom of going when and where I want. Also nice to make money doing it. I pull a step and try to get as much o/d as possible. I work with a couple brokers, but most of my work I get off the ITS.
The paperwork isn't hard to keep. You keep most of the information needed already. Make sure you keep it up to date weekly.
My insurance I use, Sentry, based in Wisconsin. Good luck.

 

insurance , liability (most brokers want 1 million) cargo , most likely you are already paying for collision , theft etc.

My last ins bill, $200K vehicle value, $1 million liability,,$250K cargo (most broker want $100K min, seafood much higher)
$2K deductible cost me $7200/yr for everything,,for new authority will cost you $10 to $12K first year.

Suggest you call Daily Underwriters Ins in Pa,do not use OOIDA will cost you a lot more.
You will need enough money to pay all your personal bills, house pmt etc plus fuel, maint funds and truck pmts for at least 45 days or more to get running until revenue comes in..Don't use factoring ,,very high interest to get your money 3 to 4 weeks faster,
MOst ins companies want 25% down then the rest in 6 to 10 payments,
MOst fail because of lack of capital,,they do not have the money to operate on for 45 to 60 days when they start,
rewards can be good especially when you find shippers to haul for direct by passing the "Pimp" broker.