Insurance Cost?

Your insurance cost are going to be based on length of authority and what is called loss runs.

New authorities have a limited number of companies that will underwrite the insurance. That would mean less choice and higher cost of insurance.

Loss runs are based on how much money different insurance companies have had to pay out to the company involved.

You then have factors like CSA scores.

Last thing would be interstate versus intrastate.

 

Simple reply, YES.

 

The DOT number is key in regards to what you are asking. Now, will the ROI in purchasing the number actually benefit you as a new owner? I can see it helping in regards to getting freight, but will the added costs of purchasing the DOT number really benefit you? What are you planning to haul? General freight, or are you specializing in something? If general freight, I would say save your money.

 

Customers, well, that is a different story. Next question, can you keep up with the customer's demands? What if a truck goes down on a shipment, do you have the wherewithal to re-power? Or bring another trailer in? Customers are great, but you have to be able to service them. Looks great on paper, and then reality bites you in the you know what.

 

Also, will the owner of this DOT number introduce you to these customers and give his assurance that you can and will do the job? Do you know what the job is? Have you spoken to any say Drivers of this outfit you are thinking of purchasing? I can see bad, and I can see good here.

 

The one guy I used to pull for, he has so many accidents, bad inspections, you'd almost have to be better off with a new number than someone's like that.

A 30 day $1,000,000 policy for me, with additional insured option, was $480. Dunno what they may have charged for a full year. I had one guy tell me $8,000 first year, Progressive wanted something like $13,000.

Let your fingers do the walking.

Through the agent that does the lion share of Landstar's it's about $425 month all in.