Tip on insurance for new Authority

I'm just now starting the process to get my own authority but I would have done so about 6 months ago if I knew what I know now.

Previously I was quoted over $30k/year insurance (I live in FL) for a new authority through progressive. Needless to say I did not take that and it actually stopped me from getting into expediting/hotshot. I sidelined my business plans at that point.

I was a bit frustrated being I've seen several people here on this forum and else where stating their first year was sub $20k some in the $15k range. I looked around but there wasn't much I could find as for a reason on why such the discrepancy in prices.

I finally found out what that discrepancy is. Maybe people with more experience will be like duh that is obvious but I'm sure many others are also wondering..

It's cars.. Do not haul cars your 1st year. When I originally requested a quote I told them I'd be hauling a flatbed trailer with general freight, but also haul vehicles sometimes. Even if you haul 1 car a month on your flatbed trailer you are put into a different classification being a "car carrier" and insurance for car carriers is much more than normal freight.

Basically your 1st year stay the hell away from cars. You can add in being a car carrier after your 1st year at a much more reasonable price. Stick to general freight your 1st year with a new Authority.

The second issue that wont affect me but might affect others is oil fields. I didn't get into detail too much with the agent, but he did say if I was hauling on to oil fields it would require a different policy and it would cost a lot more.

Last.. Pick the right insurance company from the start. After 3 years your insurance for a new authority will drop dramatically but how much of a drop is based on the age of your policy not the age of your MC#. If you start with 1 insurance company then switch after a year to another.. You will not get the same rate drop at the 3 year mark vs if you keep the same policy number. That is the key.. You can make changes to your policy, but you need to have the same policy number to get the biggest price drop in the 3rd year.. After 3 years it shouldn't be as big of a deal to change companies.

Take it for what it's worth I don't have my #'s yet but this is what I've learned while trying to sort out the rate issues on a new MC policy..

For the record, after adjusting my quote to what I've posted here , my new quote from Progressive is now 16k if paid in full or $18.5k/year via payments for a new MC#. Still expensive but nearly half the price I was originally quoted and more in line to what I was expecting.. (if I set the business up in a different state from FL it would be cheaper, FL & TX are 2 of the more expensive states just fyi)

 

Yea I'm sure there is a bit of that as well. I also know my private policy is via progressive and that it's price has gone down over time. Could be a company thing but I suspect all insurance companies will do that to keep you. I think after the 3rd year or so you have a better bargaining chip when transferring to a new company though.

Personally I'm ok with paying a small amount more for them even if I can get it cheaper at a fly by night.. I've had to fight with insurance companies before and I've never had a issue with my private police with progressive. I was T boned in my pick up truck once and they didn't blink an eye to pay for stuff.

 

I didn't know there was some 300 mile radius but I think I told them 1k miles as I wanted to be honest. I think part of the price is me being in FL. Auto/house insurance in general is always more in this state vs others.

No state tax but they get you on everything else to make up for it.. I lived in MA before and honest to god it was cheaper to live there in so called Taxachusetts vs FL.. However I suspect a trucking company would be diffrent.

What state are you in btw?

 

My problem with vehicles was they said it would then classify me as a car carrier and previously my quote was $30k if I told them I would do cars. Is there some break I can get if I say I will haul no more than 2 cars so it would fall under the basic $100k limit?

I honestly don't like not hauling cars in fact my intended freight was to be able to haul oversized vechiles but the insurance rate was too expensive once they classified me as a car carrier.

 

I talked to OOIDA today about their authority service to see what they charge vs doing it myself. While on the phone they asked about insurance and while I was talking to them about it I mentioned the price diffrence between hauling cars vs not and according to the agent there is no diffrence how many cars are on your trailer.. They said it can be a 10 car hauler or 2, but the insurance will still be jacked up. The reason they said is because with cars you have combustables (fuel in the tanks) which puts you as a low level hazmat..

That seems ridiculous to me but That's what they are claiming.