$2021 PER MONTH INSURANCE IS THIS HIGH OR OK FOR FIRST YIME BUYER?

Discussion in 'Ask An Owner Operator' started by arif shah, Apr 2, 2021.

  1. danny23tx

    danny23tx Road Train Member

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    My first year was around 18k for new entrant
     
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  3. John E Walker

    John E Walker Light Load Member

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    The only option I see is to pay a higher deductible. You would get a better premium if you can cover the 1st $100,000 out of pocket. Otherwise, suck it up buttercup and pay the man with the Big Cigar !
     
    Last edited: Apr 3, 2021
  4. GraniteRiver

    GraniteRiver Light Load Member

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    Prices have gone up quite a bit. Just started another one and its in the low $20k's with clean driving record and experience for the driver. Just have to take a big bite of the #### sandwich and make it through the first couple years.
     
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  5. SteveScott

    SteveScott Road Train Member

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    It has everything to do with where he lives. Rates on the west coast for new authority start around what the OP was quoted. My guess is that he's in a high premium area.
     
    TheLoadOut Thanks this.
  6. snowwy

    snowwy Road Train Member

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    Credit score seems to be a big factor in quotes.
     
  7. ready2truck

    ready2truck Light Load Member

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    No. Nobody is giving the important information.
    Liability limit, mileage radius, deductible, truck value, trailer value, driving history, under/uninsured
     
  8. snowwy

    snowwy Road Train Member

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    Nobody is giving. But they're getting.

    There's a reason why some are being quoted 35g and others are quoted 9g.

    My quote was 9g on a 3 year old truck.
     
  9. TallJoe

    TallJoe Road Train Member

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    I am one truck/ one dry van establishment who finds 100% freight on load boards. $9,056.00 was the total I spent on insurance costs for the business in 2020. That includes Auto Liability, General Liability, Cargo, Physical Damage/Theft. Equipment valued at $45,000 and radius of operation is over 500 miles.

    One thing that I ponder is the realization that the market (brokers/shippers) could not care less about what someone's insurance premiums are or even equipment's worth is, for contracting a load to a carrier - while many of us think that they should. Or that many think, when entering the field that they will somehow have the ability to dictate the rates to the market by virtue of their costs being elevated, as if they were more in demand than the rest - the cheaper haulers with less overhead.

    At the end of a day, a lousy truck parked next to a new shiny one will haul for the same rate, or even higher, and even if it does it for less, it will never be low enough to make the trip less profitable. As a matter of fact, in a way, the lousiest one will be the one dictating the terms of what the rate is for the rest.

    Therefore, it'll be unequal game for those of you, by bringing over $200 000 worth of equipment and over 2K per month of insurance premiums vs. those that have they rigs and trailers paid off and premiums under 8K.

    There, definitely, must be a business plan for those entering this competitive world with such an overhead. Finding freight on a load board isn't exactly the long term business plan. It has been all right since June of 2020 until now, but don't be under illusion that it will continue like that long enough so that you can pay those rigs off with ease and become millionaires.
    Another thing to realize is that, currently, there is a strongly lobbied agenda for increasing the auto liability minimum. The effect of such a change is hard to predict by the very pros in the insurance field. One thing for sure, for new entrants, it is no good news. I recommend to join OOIDA as they seem to be the only whistleblowers that at least try to do something about it.
     
    Last edited: Apr 4, 2021
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  10. bad-luck

    bad-luck Road Train Member

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    Curious as to how much experience you have? And were you leased on before?
     
  11. ready2truck

    ready2truck Light Load Member

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    Liability limit, mileage radius, deductible, truck value, trailer value, driving history, under/uninsured, cargo insurance, reefer break down insurance, age etc.
    It's so many different variables that no one mentions.
     
    Last edited: Apr 4, 2021
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