Truck insurance for new Owner Operator?

Discussion in 'Ask An Owner Operator' started by ryan730, Jan 19, 2022.

  1. ryan730

    ryan730 Bobtail Member

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    I’m in the process of getting my own authority at the moment. Been leased on for the last 6 years a company. Good run over all, but they’re making some changes I don’t like.

    Been getting some quotes from various insurers and they are wildly different. Any explanation as to how or why? Or if I need to have them re-ran?

    Ooida quoted me at 20k for the year. Liability, physical damage and cargo.

    Progressive quoted me at 10.2 with a 15% discount for paying it at once. Liability, physical Damage, and cargo.

    Limits were 1M on liability, 100k on cargo, and 2.5k deductible for me truck and trailer on physical damage.

    Mileage set at unlimited to be able to run the lower 48.

    How is the difference so massive? That doesn’t seem accurate, yet the last checked and rechecked. What am I missing?

    thanks for the help in advance.
     
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  3. woolybully35us

    woolybully35us Light Load Member

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    ooida has to get their cut of the money
     
    wis bang Thanks this.
  4. Jed2009

    Jed2009 Light Load Member

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    It’s insurance. No rhyme or reason. They’ll bone you if you don’t do your due diligence. I went with Progressive as a new OO and they have treated me well. I went 4 months until my policy renewed for the year and they dropped me from 13k to 8500 for having 2 good inspections and no claims or tickets or anything. Just shop around and see what works.

    Also a big difference is the radius. I know you mentioned unlimited. For me I am local, and the agent said it makes a big difference for instance 500 vs Unlimited is a good way to save money. Not sure what the increments are but maybe something to check on.
     
  5. wis bang

    wis bang Road Train Member

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    Until you have developed the 'Experience Mod' [based on the loss runs of your first few years of insurance coverage] the cost of initial coverage depends on where that companies actuaries' darts hit the dartboard, this week.

    Experience Mod includes the amount paid out plus any amount held in reserve [like for open bodily injury cases] from each insurance carrier you have had.

    Should you experience a loss that reserves the total amount of your liability coverage and then paid out 80% of that amount; you cost of coverage will skyrocket and slowly come down with continued 'good behavior' i.e. a lower Experience Mod every year.

    Remember Progressive has a wider base of customers and this may create a discount until you have a number of claims.

    OOIDA is insuring only truckers so the average cost of an incident starts out higher without a million -or- so automobile customers pumping additional dollars in so the cost of participation could be higher..

    While some of OOIDA's offerings are not the absolute best available; overall I would think the A M BEST ratings may indicate the highest ratings for the coverage they sell and I do think that OOIDA's thumb may also be on the scale too but your adjuster will know more about trucking than cleaning up after a couple of soccer mom's fender benders.
     
  6. Old Man

    Old Man Road Train Member

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    Separate liability and cargo from comp
    Depending on your equipment ooida can be very high on comp.
     
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