Big Truck Insurance new authority NY

[Jason_Devore]

Hi all,

I am planning to file for my FMCSA/DOT around the 15th of Dec looking to go active around the 5th or so of Jan 2022, completely new authority.

I contacted Progressive for insurance.

I got a quote of $20k for the year and they want it all upfront and say the upfront part is specific to NY however other states may do a monthly.

I was given a number to a 3rd party company whom may help with paying premium in installments but they may want a percentage of freight receivables etc. signed over to them. Anyone know about this angle/structure?

 

[Jason_Devore]

(cont')

I will be in a 26ft box truck doing mostly Amazon and DAT load board up and down the NY NJ and CT seaboard.

I will be renting from Budget/Ryder/Penske etc. if that makes any difference.

Any ideas/suggestions/conversations welcome.

 

[FlyingVan]

I know you didn't ask this, and you probably don't want to hear it, but I'll say it anyways. I see so many red flags in your posts that it will be a miracle if you make any money after all is said and done.

My advice would be to scrap the whole plan and start over the right way. Buy a proper truck, sign on with a reputable company and make some good money. Or better yet, contact a fleet owner, drive for them for 6 months, learn the ropes, see if this is for you and if it is, buy you a truck.

If you decide to go with your plan, all I can say is Good Luck. You will need it.

Sent from my moto g(7) using Tapatalk

 

[danthewolf00]

Your renting/leasing the truck......are you out of your mind? You Will go broke with this plan.

 

[Ragman]

Your renting/leasing the truck......are you out of your mind? You Will go broke with this plan.

It's answers like this that makes newbies to shy away from EO. Without knowing the Op business plan, he gets slammed.

It is possible to make money while leasing. How do I know, I drove a leased truck for years. The guy I drove for leased trucks for nearly 30 years and made a bundle.

 

[danthewolf00]

Yes but hes plans to do Amazon and some dat board....and renting or leasing from the Penske/Hertz is going to cost them a lot in miles. It's not like leasing from a owner.

 

[danthewolf00]

Oh and the reason the insurance is so high is do to the high crime rates on the east coast.
Don't for get toll road cost.

 

[Ragman]

. It's not like leasing from a owner.

You know this, and I know this, but does he knows this.

He could be using the term 'lease' wrong.

Edit: the guy I drove for leased a 26ft straight truck from Enterprise yearly. All maintenance was done by Enterprise. We did out and back mostly.

We still made money. It can be done with the right business plan.

 

[LDB]

I got my insurance through CIS, one of the main supporters here of EO. I wouldn't deal with anyone else for insurance. Good luck.

 

[danthewolf00]

So you have.....
Lease/rent.
Cost of miles driven by you in said truck because they will charge you for those miles unless you get unlimited miles.
Insurance....reason for high cost is because of very high crime in ny and east coast.
Fuel....going to be higher in new York so keep an eye out for cheaper fuel with apps like gas buddy.
Maintenance/repairs unless covered under lease.
Tolls.....get a toll road transponder because it cost alot less than cash/credit card.
Food for while out on road....in a cooler.
And a good truck gps so you don't hit a low bridge or go on a parkway.

 

[Jason_Devore]

This will be long, bear with me, I want all detractors and advocates to comment on my numbers and tell me if I am delusional (don't think I am...).

I drive Uber in NYC currently, I know where the low bridges are mostly, the NY and Atlantic Railroad in Brooklyn is notorious, I live in Brooklyn (BORN AND RAISED).

I did the numbers, no direct rail freight into NYC there is a LOT of business here both Amazon and load boards.

The numbers are as follows:

$450 weekly for truck under business account .15 cents a mile charged.

$18,500 insurance breaks down to approx ~$1600 monthly, I have credit in that amount clear with various cards upfront (though my unanswered question was how to get around that upfront requirement (someone did, thanks LDB), but I'll address other's concerns).

Planning on these bare bones minimum calculations (I expect numbers to be slightly or much better):

350 loaded miles a day (including deadhead) at no less than $1.7 a mile.

Work month should consist of no less than 25 days.

350 x 1.7 = $595 daily (25 days and this is being LAZY)

595 x 25 = $15,740

Gas - Diesel at (no fuel card/high estimate) $3.5 a gallon = (350 x 25 = 8,750 miles... / 8 miles a gallon conservative 26ft box truck estimate = 1,093 gallons x $3.5 =$3828 monthly.

Collision insurance at rental company 15 a day or approx $500 a month for collision. (the above $18k number is separate for freight etc.)

I plan on amazon relay for almost all biz, DAT load board is a fallback but I will compute 3% factoring off gross for shts and giggles (just for you guys).

so we have:

$15,740 x .97 (3% factoring) = $15,268 gross profit

expenses:

truck rental = $1,800 monthly

mileage = $1,312 (@ 15 cents per mile charged by rental company, 8,750 x .15)

insurance = $2,100 ($1600 Progressive + $500 collision from Penske/Ryder etc. monthly)

gas expense = $3,828 monthly

= $9040


$15,268 - $9,040 =

$6,228 net profit before taxes.

Lots to write off before taxes but lets call it 30%

$6,228 x 70%

=

$4,359 monthly

EVERYONE,

COME AT ME AND MY PLAN / NUMBERS. (I am here to be dissuaded - but based on the numbers)

Thanks in advance to all!

 

[Jason_Devore]

I know you didn't ask this, and you probably don't want to hear it, but I'll say it anyways. I see so many red flags in your posts that it will be a miracle if you make any money after all is said and done.

My advice would be to scrap the whole plan and start over the right way. Buy a proper truck, sign on with a reputable company and make some good money. Or better yet, contact a fleet owner, drive for them for 6 months, learn the ropes, see if this is for you and if it is, buy you a truck.

If you decide to go with your plan, all I can say is Good Luck. You will need it.

Sent from my moto g(7) using Tapatalk

Please list red flags.

 

[Jason_Devore]

Your renting/leasing the truck......are you out of your mind? You Will go broke with this plan.

Please expand on WHY / HOW we will go broke.

 

[Jason_Devore]

You know this, and I know this, but does he knows this.

He could be using the term 'lease' wrong.

Edit: the guy I drove for leased a 26ft straight truck from Enterprise yearly. All maintenance was done by Enterprise. We did out and back mostly.

We still made money. It can be done with the right business plan.

Please show me where I used the word lease in any of my posts except this one.

Renting is different with no commitments. If I am correct, leasing involves some commitment...

 

[Jason_Devore]

It's answers like this that makes newbies to shy away from EO. Without knowing the Op business plan, he gets slammed.

It is possible to make money while leasing. How do I know, I drove a leased truck for years. The guy I drove for leased trucks for nearly 30 years and made a bundle.

I won't shy away I am here for the smoke!

Thanks Ragman!

 

[Jason_Devore]

Oh and the reason the insurance is so high is do to the high crime rates on the east coast.
Don't for get toll road cost.

I own two transponders NY and NJ and switch them out accordingly...

 

[danthewolf00]

Please expand on WHY / HOW we will go broke.

The mileage on the truck....unless you get unlimited mileage you will be charged a fee for every mile driven on top of the lease cost.

 

[Jason_Devore]

The mileage on the truck....unless you get unlimited mileage you will be charged a fee for every mile driven on top of the lease cost.

I put that in my rather large post above:

expenses:

truck rental = $1,800 monthly

mileage = $1,312 (@ 15 cents per mile charged by rental company, 8,750 x .15)

insurance = $2,100 ($1600 Progressive + $500 collision from Penske/Ryder etc. monthly)

gas expense = $3,828 monthly

= $9040

 

[LDB]

Figure on expenses being plus 10% every month and income being -20% every month, to be safe for the bad months, and if it still sounds good spend more time dissecting it and considering it.

 

[Jason_Devore]

Figure on expenses being plus 10% every month and income being -20% every month, to be safe for the bad months, and if it still sounds good spend more time dissecting it and considering it.

I agree with this, as we speak I am missing busy season but it is what it is.