Insurance questions

Discussion in 'Ask An Owner Operator' started by Cheepjeep8, Aug 16, 2022.

  1. Cheepjeep8

    Cheepjeep8 Bobtail Member

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    Good evening. I am running into a problem on my insurance renewal coming in sept. I'll give a little history, i've been driving for 18 years owner op for 3.5 and i started my authority a year ago. I was by myself at first, and in april i paid for my brother to go to school to get his license, and he spent 2 months training with me, i then bought him a truck and trailer. So he works for me, and i added him to my insurance in april, then added the truck and trailer to my insurance at the end of may. My insurance went up to right at $30k per year for both of us drivers 2 trucks and 2 trailers, which roughly doubled my insurance costs for the year, and i was ok with that. I got my renewal notice a couple days ago for september and they (progressive) have went up to almost $44k per year, now i know he's a new driver, but we both have clean records, no freight claims or anything. I contacted my agent and he informed that they went up so much because he's a new driver, what i can't understand is why they went up now and added almost $14k to my rate, but didn't go up that much when i added him and his truck on initially. They even went up on the rate of my truck which was $13.5k last year and $20k this year.

    So i guess my question is has anybody dealt with a similar situation, and can anybody recommend an agent or company that is good to work with that will give me a decent rate with him as a new driver. He will have almost 6 months experience by the time my renewal comes up. I'll also mention that he's almost 32 years old and i'm 38 so it's not like were really young high risk drivers.
     
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  3. staceydude

    staceydude Road Train Member

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    Progressive seems to be famous for this.

    Did y’all have a 500 mile policy the first year? Agents sell that and then bam, second year it goes way up.

    Otherwise who knows.

    You might be able to switch to great west or someone else.

    My first year was progressive, I switched to great west and with better coverage it went down a bit. This year (starting my third year of ow. Authority) it dropped about $1200 a year with my new quote.

    It is just me on policy and I was new CDL and new authority when I started.

     
  4. Siinman

    Siinman Road Train Member

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    Worth calling around and getting quotes yourself. Go to all the big companies and see what they say. Gonna guess it will be sticker shock from all with a new driver and less than 2 years on own authority.
     
  5. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    Yep. While i had no driving experience when i got my authority last year, I've had my CDL since the late 90's.

    Progressive never blinked an eye. They were cheaper than all the rest. My premium went down a little over a 1k$ this year.

    IIRC, their coverages were intrastate, 500 miles, or unlimited.
     
  6. Cheepjeep8

    Cheepjeep8 Bobtail Member

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    Oct 7, 2019
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    Well I'm going to call around see what i can find. Might try to call progressive and see if they changed the mileage on my renewal.
     
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  7. RedForeman

    RedForeman Momentum Conservationist

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    The new driver drives up rates for the entire fleet. Been there, done that, got the t-shirt.

    The rate is based on the highest risk driver, always.

    Rate reductions are typically as follows, on the renewal following the specific anniversary:
    New/inexperienced driver - 2 years
    Time in business - 3 years
    CSA score - diminishes over 2 years
    Claims and losses - 5 years
    Moving violation history - usually 5 years but can vary depending on the insurance company.

    Best you can do is shop around. Meanwhile embrace the suck and look forward to hitting those anniversary milestones.

    Side note, once you have 3 years in business with no drivers under 2 years experience and clean DMV and zero loss run, more doors will open on the insurance market, lowering your rates even more. The company i'm insured by wouldn't offer coverage to you on this basis.
     
  8. Cheepjeep8

    Cheepjeep8 Bobtail Member

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    Oct 7, 2019
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    Yeah im probably just going to lease him on with a mega. He's my little brother, but rates and volume aren't supporting $4500/ month in insurance payments. I have a couple direct ship customers that keep us busy but that's slowing down. Crap situation, but he can get more experience that way and i can stay in business.
     
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