Help reducing the cost of insurance for my business.

Discussion in 'Ask An Owner Operator' started by analoglogistics, Jun 22, 2022.

  1. analoglogistics

    analoglogistics Bobtail Member

    Apr 24, 2022

    I'm sure this question has been asked a million times. I'm looking for my first insurance plan and trying to reduce bending over. Background: I'm in California, will be starting with hotshot. Have an F-450 and will be running a 25' gooseneck. I plan to stay under 26,000 lbs. I've got my Class A recently just in case. I have a dispatcher friend that should be able to keep me local for majority of the time but there may be loads to AZ, NV, OR closeby.

    I've been quoted 2 ways so far:

    1. Intrastate:

    $1,000,000 CSL
    $1,000,000 Uninsured Motorists
    $1,000 deductibles for physical damage coverage the F450 and the Big Tex Trailer insured for $91,000 and $14,000 respectively.

    Down: $3,476.26
    Monthly: $1,071.25

    2. Interstate

    All 48 states $1,000,000 CSL with physical damage coverage for the trailer and pickup.
    Down: $8,512
    Monthly: $2,565

    Looking for some advice as I have to change my carrier status before I pull the trigger on a plan. Do you have a good broker or insurance company you can recommend? Should I try to stick to Intrastate for a while until the business is doing well? Should I just bite the bullet now and do the Interstate? What are the dangers of registering everything as Intrastate and running a load once in a while over state lines? Can I apply an umbrella policy to cover out of state incidents if I am registered as intrastate? Any advice you guys can provide is much appreciated.
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  3. merv85

    merv85 Light Load Member

    Mar 24, 2020
    Dallas, Tx
    is the payment for 12 months or 9 months? are the quotes from progressive?
    Rideandrepair Thanks this.
  4. Big Road Skateboard

    Big Road Skateboard Road Train Member

    May 2, 2021
    Those #'s sound insane. I've got unlimited through Progressive. 1 mil liability, 100k cargo under 14k a year.

    Full coverage on truck and trailer, roughly 80k for the pair value.
    Vampire and Rideandrepair Thank this.
  5. RunningAces

    RunningAces Heavy Load Member

    Jul 2, 2017
    Holy ####. Do you live in Miami and have 3 DUIs?
    Vampire and supergreatguy Thank this.
  6. W923

    W923 Medium Load Member

    Feb 28, 2022
    Not to pick on hotshots but with my personal experience I can see why their insurance could be high
    He needs to find a better insurance man that knows how to fill out the forms it can make a huge difference.
    I don’t really know off the top of my head but I think the first quote is close to what I am paying for 2 dump truck and one semi with 3 trailers for similar coverage
    It’s going to go down if you can keep a clean record
    Vampire Thanks this.
  7. brian991219

    brian991219 Road Train Member

    Aug 10, 2013
    Lords Valley, PA
    I must advise against this. If you are setup as intrastate but engage in interstate commerce and have a loss your insurance will not pay out on anything as this is insurance fraud. Further you can be fined for operating without proper authority as you can't get interstate authority without the proper policy and the insurance company filing a MCS-90 bond.

    I also want you to understand that crossing state lines is not the only way to engage in interstate commerce. You can state completely within the state and still be required to comply with interstate authority and interstate insurance based on the nature and intent of your freight. If the freight came from out of state or country or is intended to go out of state or country then it is interstate commerce even if you never personally leave the state, heck you don't even need to leave the city you pick the load up in to be considered interstate commerce. This means ports, railheads and major shippers like Amazon are all out of the question as they are always interstate commerce.

    Trying to stay intrastate only is very limiting for a business, especially a new business, unless you have dedicated and direct local customers.
  8. Tekna

    Tekna Bobtail Member

    Jan 11, 2022
    With an F450 you're going to also be super limited on Payload capacity staying under 26k. I have an F450 with 40' GN and empty I'm around 19k. You have a CDL so why limit yourself? Honestly don't know what your options are within the state but limiting yourself with weight and intrastate doesn't sound like it'll be profitable tbh especially in this economy.
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