Can a company change insurance providers in the middle of a policy

Discussion in 'Trucking Industry Regulations' started by aj72941, Oct 20, 2021.

  1. aj72941

    aj72941 Bobtail Member

    Aug 8, 2017
    TLDR - Is it possible to change insurance companies half way through a policy?

    We're a growing trucking company, up to 18 trucks. We got away from Progressive after our first 2 years, but one of our new insurance underwriters is absolutely terrible.

    They have intentionally vague conditions they will not clarify for adding drivers to our policy, and have made every driver addition jump through unnecessary hoops to let us employ them. They refuse to accept mandated DOT per-employment verification as a means of CDL experience, any unemployment gap longer a month in the PAST 3 years disqualifies them regardless of experience, or they're put on probation and have to be reviewed quarterly. If their physical license has an issued date sooner than 3 years to the day they have to get first issuance letters from state authorizes or a picture of an old license (which owning two licenses is illegal in most states). If their MVR doesn't have the CDL issue date listed (most states we employ drivers from, they don't put it on there) they have to get an issuance letter.

    I've lost 90% of my applicants due to their plethora of conditions that were not made clear when we signed on with them, and putting what I feel is too much responsibility on a new applicant. Especially in this industry where there is such a demand for quality drivers. Many of these applicants I believe to be veterans of the industry that anyone would want to have. I cannot deal with this company for another 9 months.

    Any information whatsoever that could help us out would be highly appreciated. Thank you for taking the time to read.
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  3. xsetra

    xsetra Road Train Member

    Aug 21, 2011
    Unless stated in your policy.
    You can cancel anytime.
    Make sure your new policy is active before you cancel current one.

    Your agent should tell you.

    Find an agent that will work with you.
    Independent agent can quote several companies
  4. wichris

    wichris Road Train Member

    Jan 17, 2011
    You can change whenever you want, you may have a penalty clause.
    Studebaker Hawk, aj72941 and wis bang Thank this.
  5. wis bang

    wis bang Road Train Member

    Jan 12, 2011
    Levittown, PA
    Doesn't sound like anything that would be considered in the conditions listed in the contract, force major [sp.], that permit you to break the contract early.

    A company that treats their customers as poorly as you describe, probably has a real narrow list of 'get out of contract free' items to begin with.

    A good insurance broker is worth every cent. We can count on several choices of alternate policies at every renewal.

    I did see one time where we changed mid-contract.

    The policy let us out if the A M Best rating changed and the company went from A+++ to A++ and the broker had us bail immediately.
    aj72941 Thanks this.
  6. Accidental Trucker

    Accidental Trucker Road Train Member

    Jun 4, 2015
    Find a good insurance broker, first. We started using the NASTC insurance broker, and they have been very good.
    wis bang Thanks this.
  7. Todd727

    Todd727 Bobtail Member

    Jun 7, 2021
  8. Studebaker Hawk

    Studebaker Hawk Road Train Member

    Oct 18, 2010
    NW Indiana
    By writing the policy with so many exceptions, when one of your drivers is involved in a serious accident involving bodily injury or death, I am certain they will point to any of these exceptions, find some deviation and say the policy was null and void 60 seconds before the crash, leaving you with no coverage.
    You can sue them, but at that point in time your companies very survival is at stake.
    Get rid of them.
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