Insurance snafu getting new authority

My point is, you would be taking a HUGE risk only to find out nobody will insure you or they need the full $10,000 up front.

 

Cargo is far less than liabilty. Can't even imagine anyone paying 10K a year even @ 300K cargo. Maybe 2500.00. Think you have liability and cargo mixed up.

 

The only thing i know is that 10K a year for 300K cargo will cover 6 of the 26 trucks i have. 10K is not even anywhere close to the cost of my liability on 3 trucks for the year. And if you pay 10K a year for cargo well, you need to shop.

 

Last guy I helped got the best quote of $11,000 for cargo and liability. Canada is very expensive also. I didn't say cargo is $10,000. I'm saying your whole insurance policy and in some cases they want either 50% up front or the whole policy. This has been the downfall of lots of people who I've helped. Best they could do was with Progressive and they were limited to a radius.

 

The most important thing I tell anyone who wants their authority is to get a quote and details on insurance before they even think of buying a truck or anything.

 

One more thing to consider. I have a friend who just bought a brand new KW and had a big bunk installed. He's been in the biz forever and a perfect record. He's leased onto a company so he doesn't pay for cargo insurance. His cost for insurance is $11,000 a year. His truck cost $160,000

If you have a loan on your truck the bank will require collision and other insurance which can really add up. So, unless you own the truck outright your going to be carrying that insurance costs also.

 

ok , I give in on this. fact is if people cant afford the insurance, they probably shouldn't be getting authority. if they are in that position, the first minor snag will put them under.

but many time what is required , gets confused with what isn't required, but is a dang good idea.

 

160,000.00 truck and 11,000.00? That's almost .069%. Most places without a lot of claims are in the .0275%-.035% range.

 

That's not for cargo. It's for liability, theft and collision. He's also from the Chicago area.

 

When I renewed my insurance last year, my agent told me that the average cost for new authorities is $12,000 for $1 million auto liability and $100,000 cargo. Most insurance companies will require about 20-25% of the premium down (minimum) and 9 monthly payments. They could require more for new authorities. My agent offers monthly payments for 12 months. My down payment is my regular monthly payment. I think that is because I have had my authority for many years and have a good safety record. Truck insurance has been going up the last couple of years. My premiums went down for a number of years then started going up a couple of years ago. I have a good record and was surprised that I would have had to pay a higher premium, especially not having a claim. My agent said that I have one of the lowest rates he wrote at the time. If my rates have been going up then new people and those with less history are likely seeing much higher premiums. I agree that anyone considering buying a truck and getting their authority should not spend a dime before checking on insurance. There is a push to force carriers to have much higher auto liability coverage. Some want to have the minimum at $4.2 million. According to some people with whom I have spoken, we are probably going to see a final increase to about $2 million. I think that will drive many independents and smaller fleets out of business due to the higher premiums.