It is almost time to renew my insurance policy and I'm thinking about upgrading. I am leaning toward adding $1,000,000 General Liability (an extra $400/year), but with rates what they are I'm hesitant to upgrade my cargo from $100,000.
Part of me wants to increase coverage in hopes of being able to offer a service that might be hard to find in the general spot market (especially when combined with tanker, twic, fast, <10 year old van, etc). And part of me wants to horde cash in case rates fail to rebound (or worse).
Thoughts?
$250,000 cargo policy -- worth $650 extra?
Discussion in 'Ask An Owner Operator' started by double yellow, May 21, 2015.
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OK, I was never an O/O, but you did ask for thoughts. I'd like to know what O/O's think about this, but it seems to me like 250K for cargo insurance is a little short on the coverage side. Unless you are going to make sure you limit the value of the loads you haul.
double yellow Thanks this. -
(not that automotive insurance has kept up with inflation either -- $15,000 injury coverage? That might take care of an ambulance trip & broken bone...)truckon Thanks this. -
to answer the posters question it depends it may not even be worth paying the extra on the hopes you can find the freight that requires over 100k cargo. research loads find out which loads require higher cargo and see how often you can move that type of freight and how much more the rates are for it. no point in paying for something you cant make your money back on.Big Don Thanks this. -
I have a customer I move cooper for, I carry it only for that reason (they require it plus GPS units and direct phone line to the driver). I've yet to have another customer ask for it. I guess if people are asking for it or you have turned loads down because of the lack of coverage then maybe, but without either of those I'd leave it alone and offer it as needed.
double yellow and Big Don Thank this. -
KANSAS TRANSIT, truckon and double yellow Thank this.
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Just get the slightly higher coverage ... The 9 mpg truck can't spare $1,000 over the course of a year? ....
double yellow Thanks this. -
I'd pay for the extra coverage. Your talking about a grand total right? For an extra $12 a year I have an upgraded auto policy on my personal car. Feels insane to roll with minimum coverage in today's litigious society.
double yellow Thanks this. -
PS I wouldn't exactly be spreading $1,000 out over the course of a year -- I'd be paying it all upfront (total coverage, AA-rated, $1,000,000 auto, $1,000,000 GL, & $250,000 cargo = $8,700 paid at once vs $10,250/year if paid in installments) -
If it were me I'd do it. The cost is minimal to up your limit and it could open up some doors in the future. I used to carry 100k and as the cattle market has went up the last couple years I've had to raise mine twice to keep up with the value of the load.
double yellow Thanks this. -
$2.73/a day increase for $250,000 insurance? Better not. That's one less soda you can buy a day
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