Insurance question for owner operators...

Do you mean 1200 a month?

 

Yeah 1200 a month I was just breathing it down to the actual payment

 

Wow, that's really high! For everything, auto liability, cargo, reefer breakdown, physcial damage, general liability and owner occ, it's $907/month per tractor. One tractor is 2015 and the other is a 2016.

What kind of cargo are you hauling?

 

Gasoline

 

Ah ok, so much higher than the $250k in cargo coverage is required I'm guessing?

 

We pay 88% of the gross and charge back all cargo and liability insurance. We have expensive insurance being based in the Northeast. We are thinking revising our contract to 85% to help off set admin cost or give owners the choice of 80% (we pay insurance). A company only taking 5% from the gross is most likely charging back quick pay or factoring fees as well.

 

I can't see how a carrier can operate on a 5% cut. If a driver is averaging $5,000 a week in revenue that's only $250 a week you make off of that driver. If that Driver only works 46 weeks a year, that's $11,500 a year. That's not enough to pay for any kind of admin help. At 10% you at least are making $23,000 and that's more than enough for part time help with back office stuff.

 

They could have company trucks supplementing that 5% also depends on how many o/o's they've got running for them