If they raise the liability minimum to $2 million or more...

Mega companies will get bigger, and small operators will get fewer.

Marginal and higher risk carriers will get hit the hardest. Profitable and safe carriers will be fine.

Joe I think you would be just fine. You’re seasoned and know how to make your way around certain lanes and run a solid business.

I pay around 80k for insurance per year for just the trucking aspect. For 2 million umbrella coverage is 20k per year additional for trucking/brokerage/small warehouse.

So, I’d say we could safely assume that the increase would be below 25% of the total policy. However, between marginal carriers and the insane rates new carriers pay, that surely will lower the amount of independent to small carriers and therefore let megas muscle in more.

I totally could see boot edge edge doing something like this. 100%. That is one thing I loved about the last administration was very pro business.

Edit: who knows maybe us small established guys will be able to take advantage! Always keep positive.

 

Up to 1.75 now. Ballin! lol

You don’t pay over 10k per year do you? So, say it went up $2500 I’m sure you can handle it.

 

It might not pass ......

 

I expect my rates to go up due to all the idiots on the road ....insurance companies are in business to make money and arnt a charity organization.

 

Be advised though that with the added exposure they will likely up what your base insurance is before they allow you to buy an umbrella policy to cover the rest...

 

I’m inclined to agree with @Midwest Trucker and @Cat sdp , I think you’ll be fine. If you’re not high risk as far as your record is concerned I don’t think you’ll see to big of an increase in premiums.

 

The problem with the increased minimum level of financial liability is two fold.

First, all motor carriers will have to submit to the increase which will change how the actuaries rate the risk to set the base premium before adjusting for indvidual policyholder risk. This will also cause a higher average settlement out of court so in 5 years after the mandatory increase Inwould expect to see even higher increases in base premium.

Second, with the higher liability level being a mandate using umbrella or excess lines coverage will not satisfy the regulations so the currently inexpensive route of obtaining $2M in coverage or more will now only be for getting coverage in excess of the new base level, say when you want $4 or $5 million in coverage rather than the base level required by law.

All the projections I have seen are showing a 30-40% increase in base premium rates, before adjusting for individual fleet risk. So your $9k annual base premium will become $11,700 to $12,600. Now imagine the specialized fleets like car haul where the base premium is $25k or more now costing $32,500 to $35,000.

 

When I got my insurance through progressive I asked what it would be with 2 mill instead of 1 and it was about 4k/year more.