So you want to "own " your own company

progressive has given me quotes for 48 state not 500 mile and I would be a new carrier.

 

Progressive seems to be a moving target. Last word when talking with my agent it was restricted to certain states, only agents in that state and some states it had to be direct. BUT, seems to change on a regular basis.

 

Haven't gotten a chance to confirm with progressive yet...

But I did get a call from the "referral source" on this forum - writing for Travelers, that looked like around $2,200 a year for Non-Trucking (bobtail only, no trailer for the purpose of leasing on to someone), and around 12K for full MC style coverage (1mil TL, 100K cargo - including non-tl/bobtail) out of Ft. Lauderdale and $9K out of the central florida area (have a friend with acreage near lake city that I could "base" myself out of) based on a '10 Volvo 780 ($80K) and on '05 Reefer ($25K).

So at least I have some base figures to work into the business model. Still not totally out of the question to get my own Authority - but, again - I'd rather drag someone elses box, on someone else's (insurance & authority) dime to get a better feel for things, and build up capital for a trailer purchase and my own MC.

Thanks again to all for the positive feedback.

Rick

 

Your friend who said he had owned trucks and that "you were crazy" might be telling you what HE thinks is the best thing for you. I will have to say I'm not sure I'd help anyone enter this business.

Good luck I hope it works out man

 

You assume correctly, Rick.

I must have misunderstood where you wanted to run. I thought you wanted to run locally. If you pull a reefer you should not have too much trouble finding something to get you out of Florida during produce season. It is usually not a problem to get something heading into Florida.

It would probably be easier for you to get started with your friend, providing his insurance will cover you. It would concern me with him having several OOS violations on his CSA. If he pays the insurance it won't make much difference in your situation other than perhaps the DOT checking you a little more frequently. Passing inspections can actually help your safety score. With the way CSA deals with scoring I don't know how that might affect his score. I spoke with my insurance agent last year about Progressive in behalf of a friend of mine. According to my agent, Progressive has a handful of agents that can write truck insurance for the lower 48 states. I believe that they are testing the waters on expanding their coverage. Most can still only write based upon a 500 mile radius.

You only need bobtail insurance if you are leased to another carrier. If you own the equipment and run under your own authority, you don't need to have bobtail insurance, according to my agent. I would check around on rates. OOIDA sells bobtail insurance. I had my bobtail with them for several years when I was leased to another carrier. You will also need to have either workers comp or an occupational accident policy. It would be easier to get started if you could drive for another carrier to get current experience. I understand in your situation that you may not want to do that. There is more flexibility when you own the truck. Starting out as an owner operator can be a major challenge, but some have made it work. Your chances of making it work are greatly enhanced by your having previous business experience and the fact that you plan on starting with no debt on your equipment. Should you decide to go out on your own you could start out by renting or leasing a trailer until you find one to purchase. Or, you could buy a less expensive truck and get the trailer at the same time.

 

You may want to check https://www.fb.com/TruckingInsuranceServices

 

There are a number of options for purchasing insurance.

At first blush - the numbers for the coverage the guy who writes Travelers don't seem too out of line. In the NTL - I pay almost as much for my car (50/100), and the truck is worth 5X as much.

I'd rather factor higher numbers into my business model. and shop for cheaper ones, as it maximizes net better than the model does. Cheaper insurance that provides poor coverage in the even of a claim, is $$ thrown away - versus more expensive that has better service. Cheaper is not always less expensive in the long run.

I can shop this better as the time approaches - but for now, I have a base figure to use in my operating cost calculations.

I'm also starting to reach out to my clients/contacts for freight contacts - and even tapped a good one for consistent flower loads out of MIA (gets me into the lanes and out of FL).

The idea here, is to get educated, and get my ducks in a row - so if (when) I do start purchasing equipment/etc., and get ready to start rolling 1/1/13, I've got all the angles covered (as best as one can, at least in this business). There's always going to be contingencies - but a smart businessman PLANS to be able to minimize the impact.

The BIGGEST FACTOR (equipment purchases aside) in deciding whether to lease on or go my own MC initially - is being able to amass 90 days of operating expenses UP FRONT, until you can get your A/R pipeline filled.

Thanks again to all, for the positive feedback.

Rick

 

Rick, if you are not sure about leasing or own authority you may want to look at us. We are here to help O/O's learn and move into getting your own authority. It could be a good first step without having to have the level of capital needed to get started.

 

It is always a good idea to calculate expenses higher rather than lower when you are doing a pro forma or estimates of costs. In this business you should not have a problem with claims as long as the insurance company has a B+ or higher rating by AM Best. It amazes me that they would be such a difference in premiums between insurance companies for the same coverage. Some will include coverage that you neither requested or need, such as general liability. You don't need general liability unless you have a terminal are place of business where there is a lot of traffic, according to my insurance agent. General liability mostly protects the shipper and/or broker. I don't see paying for extra insurance that I don't need. I have had a few agents who added general liability even though I didn't request it. When you shop rates make sure that you are comparing the same coverage.

 

LOL - already made contact with Chris - I expect we'll talk on the phone sometime today...

Regards,

Rick