Losing my authority

Discussion in 'Ask An Owner Operator' started by femalecdla, Feb 25, 2020.

  1. femalecdla

    femalecdla Light Load Member

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    I’m losing my authority before I even have a chance to run under my own authority. I feel it’s out of my hands and nothing I can do about it. I’m losing my authority because of lack of insurance. I know this topic has been talked about a lot. I have read and called most places that some of you have recommended. Sadly, because I only have 2 years driving experience, live and operate my business out of PA, the only insurance company willing to insure me is Progressive. I have paid Progressive nearly $4,000 since December. But they decided to increase my premium by 58% to the point that I cannot afford it. This premium price is only for primary liability that the FMCSA requires to keep my authority active. Yes, for $750,000, Progressive wants me to pay $28k. They are demanding that I pay by March 5th, $2k and if I don’t will cancel my insurance. This premium doesn’t even include full coverage on my truck, cargo, or any other related coverages that most brokers want for me to have. It’s just primary liability for $28k at a cost of $2k a month. Clean MVR, no tickets, no failed inspections, no nothing. Just lacking the driving experience that no insurance company wants to work with me. So, my authority will come to an end even before I had a chance to run under my own numbers. And, now I’m being told that if I don’t pay Progressive and they cancel my insurance policy due to non payment, I will not be able to get insurance anywhere else. So, my dream, my vision is over before I even got it off the ground.
     
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  2. x1Heavy

    x1Heavy Road Train Member

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    You are out of Business for a basic reason. It costs too much to be worth it. And so you are eliminated. Poof business destroyed. Potential employer of people destroyed. Potential engine and pillar of your local society destroyed. One possible future destroyed. Its more profitable to you personally to be a company driver. Get paid very well without the rest of the stuff that businesses sink under every day. If you made it 10 years or even 20 or more quietly stacking a percentage of EVERY paycheck you ever got. you are going to understand that you are in control of a couple million at least and no debt. You can buy anything in the USA if not the world anywhere at your decision. No one else.

    We were homeowners once. No debt no problems and everything was 100% caught up and exceeded local code enforcement. Sometimes in the south they laugh and say to us that ice dams are not needed here. Well. Witness the 2000 ice storm that caved in roofs around us that did not have Ice Dams. No more laughing then. Only tears.

    Why arent we homeowners? Simple 46000 dollars in student loans for college that was worthless. As we say here in the south "Spinning money" in the mud is the literal term. Our loss. It is also a greater loss when there is no more home ownership in the future. Whatever that might be. Tenant renting? Certainly. There are possibilities but who knows what the future holds. (The student loans were paid off free and clear, Cash)

    You could also make a argument why arent we this or why arent we that or something or other in life. If I knew so much about trucking why do I not run a trucking company? Simple. It cost too much. There is no point. All you are doing is sinking a very large amount of everything you are into a ultimtely futile gain of a few dollars that has been diverted to pay long forgotten debts incurred getting your business going, There is no point.

    Fianlly but not least. Close the insurance acct yourself. You would be give a final day that its in force and that would bethat. Make it happen =BEFORE they close it in your face then SUE you for nonpayment against you and your credit etc. You would never see the last of this.
     
  3. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    If you have a clean record and 2 years experience, why not lease onto Landstar or Mercer?

    You can build up more experience and a lot more money.
     
  4. femalecdla

    femalecdla Light Load Member

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    Because the reason for me getting my own authority was to break free of being leased unto someone else’s authority.

    My plan was to get my authority and transfer into doing power only for a year or two. Then save enough to get my own trailer while continuing to learn the business of running a trucking company and building relationships with shippers and brokers.

    However, even the carrier I’m leased unto now requires that your authority be 90 days old and you must have full coverage, cargo, etc. On March 6th, my authority will be 90 days old which opens the doors to several carriers that does power only. Yeah the pay isn’t good, but that’s not my main objective. The plan at this point is to start small and expand as I go along.

    Second, my truck finance company has a huge impact as they will not allow me to run under my own authority until I have paid $13k towards the balance of my truck payment. This $13k covers my first month payments with the remaining amount going towards the balance of what I owe. Basically they don’t want me taking my truck and then having it repossessed because of non payment should I fail in my plan.

    So, for now, I stay leased unto my current carrier while I continue to save my money. But, between the 2 trucks that hit my truck at the truck stops each costing me to have to pay a $1,000 deductible so my truck can be repaired, me spending money on comestics for my truck, getting suckered into a $16k bad APU deal by listening to another owner operator, launching my business, getting my own authority, and setting up insurance, I’ve depleted my savings account. I basically have to start over now except that I still have my truck. I still have my business, I’m just losing my authority.

    If I’m not misunderstanding what the FMCSA told me, I’ll have a week to get more insurance before my authority is suspended. Then if I still don’t get insurance, they will revoke my authority.

    Not the end of my journey but this sucks. I’ve made some bad business decisions that I thought were beneficial for my success. Sadly, the issue with Progressive I just don’t understand. They are leaving me hanging dry and there isn’t anything I can do about it. I’ve tried to get an attorney, I’ve sent them all the proof that I don’t operate out of my home address and steal refuse to accept what I’ve sent them. I’ve sent them my ELD logs that prove I don’t garage my truck at my house, I’ve sent them a copy of my office lease, I’ve sent them everything that proves that I do in fact have a physical office away from my house. Now they want me to change the address on my CDL by stating that is what they are basing my premium rates off of. I spent and hour and half on the phone with them yesterday pleading with them that using my address on my CDL while ignoring the proof that I have a business outside my home is just insane. So every owner operator with their own authority premium rate is based on where they live and not where they operate? It just doesn’t make sense to me.
     
  5. DieselDrivinDaddy

    DieselDrivinDaddy Light Load Member

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    Sorry to hear that you’re unable to make it work.

    I personally had the opposite experience with Progressive. Live and operate out of PA also.

    Two years CDL-A experience, $1m general liability/$2m aggregate, $1m bodily injury/property damage, $100k cargo and under/uninsured. 20 year old $20k truck and 2019 Great Dane dry van.

    Cost me $16k first year, $13k in 2019, $9k in 2020.

    Now is a tough time to get started as an O/O unless you already have work lined up.

    Like Dave_in_AZ mentioned, try leasing on to a carrier who will keep you busy. You can always try the independent thing again down the road.

    What kind of trailer are you looking to pull?

    Edit: just saw your new reply and can understand the situation more clearly.
     
  6. TallJoe

    TallJoe Road Train Member

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    Progressive are notorious for giving such ridiculous qoutes. My quote from them was also that high despite 15 years of CDL record. I shopped around and found Wesco for 10.5 K - that's for auto liability only. It was in IL in 2016. Why there is no insurance market in PA or MI - not small trucking states?
    Did they take 4K as a downpayment and right after they decided to increase the premiums? If so, they had better give you the money back.
     
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  7. femalecdla

    femalecdla Light Load Member

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    No, the original quote was like 12k just for liability. They wanted $2,000 down so I paid that. The following week, I paid my first month of $1,030. Then in January, I went to pay February bill and notice that they wanted $3,400. So, I called them and that’s when all this took place. I tried looking for new insurance and no one will cover me and those that did want more than what Progressive is asking me to pay. So, I made another payment of $1,030 to Progressive to keep my insurance. When I went into my office yesterday to pick up the mail, that when I read the cancellation notice that if I don’t pay $2,000 by March 5th, they are canceling my insurance due to non payment.
     
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  8. JonJon78

    JonJon78 Road Train Member

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    What's the $16k APU deal you speak of?
     
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  9. rachi

    rachi Road Train Member

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    Maybe do like others said on here and lease your truck onto a company and run under their authority untill you get a couple more years experience.
     
  10. rachi

    rachi Road Train Member

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    To bad they cant reel in the accident attorneys who are the reason behind the steep increases in Insurance coverage. Even 200 truck fleets are going out of business because they cant afford the Insurance. A drunken 4 wheeler slams into the back of an 18 wheeler, and who do you think is gonna end up paying millions? Take a guess! In the end, only the super megas will survive.
     
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