Company asking for $2500 down payment to be on their insurance

Discussion in 'Ask An Owner Operator' started by Gtrucking, Jul 28, 2021.

  1. Long FLD

    Long FLD Road Train Member

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    Holy crap. I thought it was monthly, which was bad enough. You could get your own authority and probably pay the same as what they want to charge you for insurance.
     
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  3. Gtrucking

    Gtrucking Bobtail Member

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    Nov 18, 2014
    High Point, NC
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    Yeh its crazy thats what 1 of my other friends said to might as well get your own authority
     
  4. MurphysLogistics

    MurphysLogistics Bobtail Member

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    Jul 28, 2021
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    The only reasonable number in there is for trailer rental. Everything else seems really high, especially the percentage they are charging. I wouldn't charge more than 12%. You could loose your shirt with these numbers. It doesn't necessarily mean that this carrier is in the business of ripping people off, maybe they have high insurance costs because of previous claims. Beware of whom you're doing business with. You can always check a carrier safety record and reported accidents on safer.fmcsa.dot.gov
    First off, you should get your own tags. Yes, DMV will ask you to provide a safety carrier for IFTA registration and if you don't have your own authority you'll have to provide the the MC# of the carrier you will lease on to, as well as a lease agreement. But any carrier looking to hire you will be more than happy to provide that (that's a standard procedure). Also you will need bobtail insurance but that shouldn't cost you more than a $2500/year (200/month). By doing so, if you're not happy with your carrier, you can always leave and, at least, you have your tags and your own bobtail insurance and you can lease on to a different carrier.
    Second of all, if you need to keep your overhead low, you can work without a trailer doing power only loads. Personally, I prefer loading my own trailer, but power only loads can make sense too, especially until you get your feet wet.
    Good luck and, if you have more questions, feel free to reply here.
     
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  5. dunchues

    dunchues Medium Load Member

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    new brunswick
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    Doesn't seem far out of the way to me, most companies will hold back the insurance deductible at least. Insurance is a bit expensive, you sure it's charged weekly or maybe bi weekly? Plates and truck taxes cost what they cost whoevers numbers are on the truck.
     
  6. Midwest Trucker

    Midwest Trucker Road Train Member

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    I get it but if you look at say Landstar then you must average 3.10 per HUB mile in order to achieve $2/mi. Week in and week out. Does it sound so bad then ?
     
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  7. Gtrucking

    Gtrucking Bobtail Member

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    Nov 18, 2014
    High Point, NC
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    Yes weekly my buddy works there too but also his first truck also
     
  8. Gtrucking

    Gtrucking Bobtail Member

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    Nov 18, 2014
    High Point, NC
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    Okay thank you and yeh i dont think they ripping off but asking too much upfront
     
  9. TallJoe

    TallJoe Road Train Member

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    So you dispatch and pay 2 per hub mile, if there's DH that is paid too?
     
  10. Midwest Trucker

    Midwest Trucker Road Train Member

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    Yes
     
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