Are these insurance quotes reasonable???

Discussion in 'Expediter and Hot Shot Trucking Forum' started by 24kHotshot, Jul 24, 2019.

  1. calnca

    calnca Medium Load Member

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    As a Berkshire underwriter I can attest that Hot Shot car haulers are a "difficult" class of business. It's not because they may have some personal use also, it's that they "typically" have in-experienced operators, trying to get "driving time" on their new Class A, so they can transition to tractors after 24 or so months of experience. Consequently the real problem with the hot shot auto haulers is lack of experience, with that comes frequency of loss, as well as the un-predictable severity loss.

    We've steadily increased our pricing on auto haulers over the last few years, and have now figured out most of the negativity for the auto hauler class is from the hot shots, by and large not from the tractor operators.
     
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  3. crocky

    crocky Road Train Member

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    No... that was a quote.. I dont have my authority yet. But no I wouldnt haul cars if I agreed not to.. That would be dumb.

    The agent told me its mostly a 1st year issue with a new authority. She said after the 1st year I could add cars and my price would go up, but it wouldn't be in the 30k range. She also said after the 3rd year I'd see a pretty decent sized drop.
     
  4. crocky

    crocky Road Train Member

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    That's not a good idea.. you cant assume you are going to make x amount of money. Having a nearly $40k/year insurance payment is suicide.
     
  5. 24kHotshot

    24kHotshot Heavy Load Member

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    So I sat and compared the quotes and policies I got till now to figure out how a bunch of brokers keep getting different prices all from the same insurance company. Looked at all the differences and sat on the phone for 2 hours with an insurance broker that is 20 years in the business to make adjustments. Here is what I found and what I did.

    The higher quotes where under the business type category of Towing Services, Gas Stations & Auto Repair and sub business type Auto Hauler. I told the broker that I am neither a towing service, gas station or a repair service and also not a semi hauling 10 cars. I changed the business category to Trucking for hire, sub business type to Other for hire trucking operations : Cars. Made sure the cargo was listed as Automobiles and the quote dropped 10 grand. Also, the broker's Progressive software wouldn't let him list the trailer as an Auto Hauler with a one ton truck. The only two options were gooseneck or large utility trailer. After calling progressive they told me to put large utility hauler after giving them the trailer make and model.
    Everything on the policy is technically correct and am willing to fight progressive on this via lawyers if it will ever be necessary but hope it never gets to that.
    It's not fair that a 3/4 car trailer pulled with a pickup and a 10 car stinger are insured at the same price. Progressive is not clear cut with their wording on the categories. I called Progressive commercial 3 times and got different answers to the same questions every single time. This is simply ridiculous and shouldn't be this difficult.

    Final quote is $28,100 which seems "fair" for a new venture with a new cdl. 1 mill liability, 200k cargo and comprehensive for 75k. All with 2500 deductible.
     
  6. calnca

    calnca Medium Load Member

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    And once your policy is issued and reviewed in the Progressive HO, a good chance you will receive a cancellation notice.

    Progressive retail brokers are notorious for writing a policy with Progressive, then once it actually gets to the carrier, they do their due diligence and find out the reality of the operator and send notice.

    We see the end result of this daily, when we question why this submission was only with Progressive for 35 - 60 days.

    We underwriters really aren't stupid, and we ARE students of the business, and with modern underwriting tools it's better to be forthright up front.....save time and a lot of energy just being honest.
     
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  7. 24kHotshot

    24kHotshot Heavy Load Member

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    Fine, explain to me how business type category of Towing Services, Gas Stations & Auto Repair and sub business type Auto Hauler is the correct business type that I am running?

    Honest and accurate, I am a trucking for hire operation. Not a gas station, auto repair or a towing service. I deliver a cargo. Insurance quote states that my cargo is automobiles.

    Where am I wrong?
     
  8. calnca

    calnca Medium Load Member

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    Dude, not saying YOU'RE wrong, just saying what the realities are of Progressive retailer brokers binding business that the HO underwriter eventually says no to.

    Until recently we Berkshire) also lumped all car carriers into the same bucket, but now are developing separate data bases, and the initial results are indicative of hot shot ops having substantially worse Liability and Phys Dam results, with the 10 car carriers having worse experience on the cargo.
     
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  9. Midwest1

    Midwest1 Medium Load Member

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    My first year as a new carrier I was paying Progressive $6500. Hauling cars is considered high risk and therefore higher premiums. $28k seems ridiculous though. Unless your credit score is crap, you have moving violations on your record I don’t see how they come up with those numbers. I honestly don’t see how anyone can make a living paying those kind of rates.
     
  10. 24kHotshot

    24kHotshot Heavy Load Member

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    Good credit 720+, clean license but fresh class A cdl. I dunno what to say. It turned out actually higher after I had a conference call with my broker and a progressive underwriter. 20k is liability alone. Hopefully get a good eld discount.
    Looking to relocate to a different state after I recoup some of the money. I guess opening my business in FL was a huge mistake.
     
  11. Lite bug

    Lite bug Road Train Member

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    I am I am glad to see your post, someone in the industry validating my suspicions all along. They are the worst of worst IMO.
     
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