insurance

Northland, OOIDA, Lancer, Progressive.

 

Do these insurances cover the escrow, occupational under one plan as well?

 

An escrow account is usually through the carrier. They normally deduct a fixed amount out of each weekly settlement until it is funded. An occupational accident policy is separate from any other policy. Some carrier do offer the policy through their insurance company, but when I leased to a carrier, I preferred to have my own policy. OOIDA has one that costs about $150/month. It works similar to workers comp and is required by most carriers to whom owner operators lease their trucks. You can get workers comp instead, but it is usually much more expensive. Bobtail is another policy that is separate and covers you when you are not attached to a company owned trailer. There could be some discounts offered by having all of your insurance with one agent or company, but you will need to check around to see what is offered. OOIDA can sell you those three policies. The other insurance companies may also offer some of those policies. My insurance agent does offer bobtail and an occupational accident policy, but I don't remember if it through the same company or not. I don't need bobtail insurance since I run my own authority. The last time that I had bobtail I got it through OOIDA.

 

That's interesting G/MAN... So you're saying that I could be legal (as far as insurance goes) to run the lower 48 at around $150 a month? I just started researching how much it would cost in insurance. If anyone would have any more information about insuring as an OO I'd apreciate it!

 

I said that you can buy an occupational insurance policy for about $150/month. Bobtail should run about $35-75/month and trailer insurance will depend on the stated value of the trailer. If you purchase collision or comprehensive insurance it will run about 3 1/2-5% of the stated value of the trailer. There is also cartage insurance if you are pulling others trailers with your own authority. These estimates are for those who may lease to a carrier. If you run your own authority, you will need liability and cargo insurance. The government only requires $750,000 liability, but you will need $1 million liability and $100,000 cargo to haul freight if you run your own authority. Liability and cargo will probably run somewhere between $6,000-12,000 the first year. From the op's question, it sounded like he was planning on leasing to a carrier rather than running his own authority.

 

I want to open up a company with myself as a motor carrier and an owner-operator. Will have a friend to dispatch me and work on my books.
Would you please send me the email of your insurance agent, so I can get an overall picture regarding the insurance.

 

And the prices may depend on what state you live in. OOIDA can't write bobtail in MD (claims some kind of law against secondary policy). But their prices where a lot cheaper than Progressive for everything else.

 

I was also wondering when an O/O leases to a company, which insurance he needs to get on his own, and which ones the carrier will provide?

 

Illinois, I sent my insurance agents information. Let me know if you didn't receive it.

Boywonder, the carrier provides liability and cargo insurance. The owner operator furnishes bobtail or unladen liability insurance. Most carriers also require owner operators who lease to them to have workers comp or an occupational accident policy. If you want, you can also buy comprehensive insurance, which covers the truck in case you are involved in an accident or your truck is stolen. When you run your own authority you will need $1 million liability and a minimum of $100,000 cargo for most shippers and brokers to load your truck. The feds only require $750,000 liability and have dropped the cargo requirement.