Question about Cargo insurance and who shoul pay for it..

Diesel Dave · Feb 5, 2012

BigBadBill said: ↑

Dave, that is d amn cheap. And out of CA.

But being leased he will not be able to get the auto liability and cargo. That goes under the carrier.

He likely has to get physical damage for tractor and trailer and bob tail.

Physical damage is something that you will want to have on your own, like plates. If and when you leave you can take it with you.
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Let me tell you what coverage I have, $1,000,000 liability, Collision Coverage, Unisured motorist, $100,000 Cargo, $25,000 unidentified trailer ins.(when I use someone elses trailer).

shoand03cobra · Feb 6, 2012

TheRoadWarrior said: ↑

first why would you open a trucking company then run under your friends authority..you buy the truck and trailer and hire the driver then why didnt you just go get the rest and have it as YOUR company... just curious
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Good question.... Answer is Risk...

I got a decent truck for $20k.I have spent another 5k for all the fix ups and fees to get it running. I also Leased a trailer for 360$ a month.
Got me a very good driver, and leased the truck under friends authority for now.
Until i see that i can make money and learn more about the business. And then get one more truck and have it ready to be running...

Then i will get my own MC and sail on my own....

If i start losing money, i will be able to survive without the money i have invested in the trucking business,since i already have the good job.

It is not pocket change, but we all got to take risks in life...

Please feel free to ask any ?????????

shoand03cobra · Feb 6, 2012

Diesel Dave said: ↑

If your your running under his authority then your leased. Why don't YOU call an insurance company and ask for a quote. You don't need general liabilty, it's good to have but not necessary, you need liability, uninsured motorist, physical, and CARGO, the rate will depend on your experience behind the wheel(or driver), what you haul, and the equipment you have. $600.00 a month sounds almost about right for everything I mention even though I only pay $401.00 a month, which includes everything I said and some extras. My premium is $4300 a year with an A+ carrier.
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Yes i am Leased.I will try to get a insurance/cargo quote on my own..I just was NOT sure what specific insurance i needed.
Thanks for help....

shoand03cobra · Feb 6, 2012

BigBadBill said: ↑

First, at that rate you will be paying all the insurance costs. At 8% there is no money for insurance out of carriers end. You will not see a carrier paying cargo until you get to 85% or lower leases.

When you start to put the numbers together you are going to find that 8% plus your portion of insurance is very fair. You will have a though time covering overhead with two trucks. And when you look at what you are paying running under another authority at 8%.

It is hard to say if $600 is high without understanding the type of operation/drivers you are looking at with this company. But $7200/year for just Liability/Cargo is on the high side. But if you have hazmat or take drivers with DUI's or accidents then you are in ball park.

One other factor to consider when looking at moving away from leasing on to your own authority. It is likely that you will take a decent hit to your revenue per mile. If your friend has been doing this a while he will have accounts and contracts that get him better paying loads. So account for that when putting your business plan together.

Side note - the fact that you don't have some of this already nailed down and you have a truck and driver on is scary. You need to be staying up nights reading this board, asking questions (after you have read) and sucking up all the insults that will be hurled at you. A year from now you will understand why the insults and be in a position to succeed because of knowledge and not on the luck you are going to need now.
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I dont think also that 8% is that bad. I have to remember that he pays some bank about 4% for quick pay.
And my driver did have an accident a year or so ago. Believe it or not a jack knife in Arkansas.....
So 600$ might not be bad then. I am just curios what you guys experience with insurance cost is....

Well i know you guys might not believe this, but i did crunch some numbers. And when i have the second truck up and running. It should be worth it for me to run under my own authority... Based on my income to cost ratio since my truck got on the road in November last year. And we all know i started in worst time of the year..

And yes i am ready to get burned by you guys.
But i have to start somewhere. I am tired getting f...d by working for a corporate...
And i am reading all i can about business.....

I just wish i could find at LEAST one driver with some balls to drive a flatbed for me

No offense to dry van boys!!!!

shoand03cobra · Feb 6, 2012

Diesel Dave said: ↑

A cost factor is what it cost to run your business, fuel, oil changes, insurance,etc,... ALL your expenses. And a reserve for a breakdowns. If you can't do the math, your in trouble from the get go. Im not going to break it down for. to much to write, maybe another member will, not to mention, there are THREADS in here that DO mention the breakdown's on the cost factor. Do your research in here. Goodluck to ya.
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Ok, i see what you saying....

Here is simple answer. I dont take a dime for my self from trucking company income.
I started with about $25k in the hole and since November i am down to about $15k in a hole.

And as soon as i get to the 0 debt i am buying a newer truck with less miles.

I am afraid to tell you guys what, and where from i bought the truck...
But it did come with APU

Thanks for input!!!!

shoand03cobra · Feb 6, 2012

BigBadBill said: ↑

RW, have you read what he is asking? He doesn't even have a CPM. Can you imagine trying to run under his own authority.
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And i have been little lazy to actually calculate my CPM...
But i was just looking at a whole picture.... How much debt i started with and how much i owe now....

And i am still learning, that is the reason i am not under my own authority yet.

Just go easy on my guys

shoand03cobra · Feb 6, 2012

Diesel Dave said: ↑

My own insurance (broker) agent can't believe the rates I get either. They use Northland.
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May I call your insurance agent for a quote?

Clasix1055 · Feb 6, 2012

Your insurance will be cheaper if you have your own authority (as told to me by my OOIDA agent) something about bobtail and cargo being combined, the amount that you are paying is reasonable (and i know im paying to much using OOIDA) your friend is charging a minimal fee to run under his authority, in my opinion if you are doing ok and turning a profit stay with him, you will raise your overhead with your authority, and the hassle of finding loads etc

BigBadBill · Feb 6, 2012

J.T. Nagford said: ↑

Your insurance will be cheaper if you have your own authority (as told to me by my OOIDA agent) something about bobtail and cargo being combined,
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In the case of my insurance compared to the guys leased to me. I am paying 3% for physical damage and they will pay 3.5% of stated value. So while some of this may be true when you add in items I cover like GL insurance it is at best a wash.

Run from OOIDA. You can find an A+ rated carrier, same or better coverage for much less.

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