Losing my authority

Unless, the dem socialists take control of house, senate & potus, it aint likely to happen on the fed level.

 

Op are you in California by chance...?

 

PA is what the OP wrote in the first post.

 

i think it was mistake was trying to age your authority paying insurance and not using your authority. there are plenty that will work with you with a new authority. i would have filed for authority but waited to put insurance in place and activate till you were ready to roll. would have saved you everything you have paid in insurance so far and even if they did jack up your rates 3 months later you would have invoices paying by that time anyway. so it would be a little easier to stomach

other than that i don't know what to tell you. first year of insurance is gonna be rough after that if you have established a favorable run loss you can normally get a much better deal. without any insurance history your considered high risk.

 

Interesting thought, but the insurance carriers are not the ones who cause the accidents we have to pay for. Granted, because of required insurance requirements, trucks are always going to be seen as a deep pocket, and consequently there will be "frivolous" losses that make you wonder WTF. But I have to tell you, in 52 years being involved with trucks and insurance, the predominate cause of loss is the steering wheel holder.

This forum has a whole section devoted to trucking accidents, and how often does every member wonder how in hell did the STW allow that to happen.

So a vast group of inexperienced drivers out there create a tremendous number of losses. How often do I see on this forum comments about "inexperienced" drivers doing this, doing that wrong. SO from our viewpoint (insurance company underwriters) we see a decreasing frequency of loss as the driver has more experience.....but two years is not enough for most that we see. Same to a large extent applies to new FMCSA authority holders. Typically these are "shoestring" operators who have to run hard, and push the rules to make ends meet. We see a 30-40% differential in results from authority holders with 1 year of experience as compared to 6+ years.

Now add to this equation the increased cost of damage repair.....forgetting hospital cost increases on bodily injury losses. Used to be, you had a TS fender bender and it cost a few $ 1,000s.......not anymore, with new units running $ 175,000 - 200,000 cost new, it now costs us $ 15,000 - 30,000 to repair that unit that Mr Rookie driver just short turned, or backed into.

Then, everyone's favorite target......the shyster attorneys with billboards everywhere telling people we can get you Millions. They are only in it for the 30-50% of whatever they get you.

Insurance at the end of the day is pretty easy to figure out.....we need to collect enough money in premium to pay all the losses, payroll, operating expenses, taxes and yes a profit for the shareholders. For as long as I've been doing this, insurance carriers will average around 60-65% of the premium dollar in direct loss payments and frequently over the years would have to depend on investment income to offset the losses and expenses being more than the premium brought in. Where I work, we have a mantra.....produce a underwriting profit....so when losses etc exceed premium income, rates go up. What we've seen over the last 5 years has been one of the biggest increase in rates, in such a short period of time. So don't blame us, we respond to what you all create and have to pay for.

 

Isn't there a 90 day max to get everything done for your MC# to be granted? Also, I believe that if the FMCSA hasn't received your BMC 91 & 34 from your insurance company within 30 days of filing your OP-1 you start receiving a warning notice from them.

The way I figure it, I'd want to be running and generating income as soon as possible if I was paying for insurance and all that goes with it. A sitting truck isn't paying the bills.

As far as leasing on goes, why get your own #'s if you just plan to give another carrier a % of your income, doesn't make sense to me. Better off just leasing on under their #'s & insurance until you're ready to start doing your own thing...

 

Interesting post from another perspective. I might add that tort reform is way overdue, but we both know that it likely wont happen anytime soon.

 

We are the only country that allows so many frivolous lawsuits even though we have very strict laws against them, judges don't hold lawyers accountable any more.

We also allow lawyers to advertise like the pharma companies, both should be banned.

 

Considering most judges started out as lawyers, that's not surprising. Personally, I don't have much faith in the so called "justice" system anymore....