Insurance question
- Thread starter Opel2010
- Start date
What does that include? Do you have your own cargo insurance?
21cExp
Veteran Expediter
For anywhere from around $225/month up with Progressive via CIS, depending on your deductibles etc, you get 1,000,000 liability and 100,000 cargo as an O/O. That's what's going up dramatically for policy holders.
Shelly Benisch from CIS has written several blog posts and chimed in on an earlier thread about this, and about rates going up for O/O's.
Her first recent post, on Mar 08, Square Peg In a Round Hole , is about the concept of Owner Ops "maintaining their own Primary Commercial Auto Liability and Cargo" being very new, and that "many Insurance Companies are not even aware that this structure exists."
Shelly chimed in on a forum thread HERE, saying the increase may primarily be more for those running for multiple carriers.
Her next recent blog post, the first in a three part series about The Multi, is here: The Good, the Bad, and the Ugly - Motor Carriers saying that "Depending greatly on each individual’s ratings criteria and unit, rates can vary from $2,700 per year to over $7,000/year for the coverage required."
The second blog post in the three part series on the Multi, The Good, The Bad and The Uglies - Owner Ops is well worth reading, too. Read them, they answer a lot of the questions posted in the forums and address many of the misconceptions.
Her third post in the Trilogy of The Good, The Bad, & The Ugly will be about "the Pros and Cons of the “Multi” model vs the “Traditional” model, as well as something new on our radar, Motor Carrier “Hybrids”. She will also talk about "why I started this blog trilogy, and my ultimate goal for Owner Ops in our Expediting Community. "
I don't believe it is an industry wide issue, but one affecting primarily those in CV's and Sprinters who carry their own liability and cargo insurance, because they don't run for a "major" carrier who offers insurance to drivers, but are trying to do the right thing, the moral thing, and the legal thing by maintaining and paying for their own insurance. As she points out, not all CV drivers are scam artists or trying to pull the wool over anyone's eyes, but those few that do try to scam others, along with the carriers that misrepresent what their drivers are covered for, pretty well phuque it up for everyone else.
Shelly Benisch from CIS has written several blog posts and chimed in on an earlier thread about this, and about rates going up for O/O's.
Her first recent post, on Mar 08, Square Peg In a Round Hole , is about the concept of Owner Ops "maintaining their own Primary Commercial Auto Liability and Cargo" being very new, and that "many Insurance Companies are not even aware that this structure exists."
Shelly chimed in on a forum thread HERE, saying the increase may primarily be more for those running for multiple carriers.
Her next recent blog post, the first in a three part series about The Multi, is here: The Good, the Bad, and the Ugly - Motor Carriers saying that "Depending greatly on each individual’s ratings criteria and unit, rates can vary from $2,700 per year to over $7,000/year for the coverage required."
The second blog post in the three part series on the Multi, The Good, The Bad and The Uglies - Owner Ops is well worth reading, too. Read them, they answer a lot of the questions posted in the forums and address many of the misconceptions.
Her third post in the Trilogy of The Good, The Bad, & The Ugly will be about "the Pros and Cons of the “Multi” model vs the “Traditional” model, as well as something new on our radar, Motor Carrier “Hybrids”. She will also talk about "why I started this blog trilogy, and my ultimate goal for Owner Ops in our Expediting Community. "
I don't believe it is an industry wide issue, but one affecting primarily those in CV's and Sprinters who carry their own liability and cargo insurance, because they don't run for a "major" carrier who offers insurance to drivers, but are trying to do the right thing, the moral thing, and the legal thing by maintaining and paying for their own insurance. As she points out, not all CV drivers are scam artists or trying to pull the wool over anyone's eyes, but those few that do try to scam others, along with the carriers that misrepresent what their drivers are covered for, pretty well phuque it up for everyone else.
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A simple solution to this may be these O/Os just getting there own authority and be classified as a carrier. Then they would be running under one MC number, there own, instead of multi MC numbers. Then the carriers they are running for would become partner carriers and they would be operating under a more traditional business model.
I've discussed about this with Julie from CIS, the difference is insignificant, it will lower the bill with $40/yr.
Yes, got that since '09
Then that would mean that the cost is going up not only on O/Os but will also rise on carriers too. Could be Progressive is pricing themselves right out of the market.
I recently cancelled my policy with Progressive. I'm not going to pay 4400 dollars a year in insurance just to make .85 cents per mile. You guys can have the multi-carrier model. Also, the lowest quote I got from 3 out of five different insurance companies was almost 10 grand a year for a cargo van with 1 million liability and 250k cargo. It's time to start looking for a different way of doing business.
Like I said in another post...looks like insurance companies are finally matching risk against premiums....we've been paying too low for too long...
I'd even settle for some to look for a DIFFERENT business....
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You better watch out there. I have enough money sitting in the bank to re-enter the business with a cube van. If I can get some of my pain under control, I might be back on the road snatching up your loads. lol.
Insurance companies know exactly what the risk is. Risk is a quantifiable thing based on accidents and claims, and an individual driver's history (moving violations, accidents, etc.). It's also quantified by the cost of those big buildings they occupy, the salaries of the people within them, and the millions of dollars it costs to do effective lobbying on Capitol Hill.
The premiums are priced accordingly.
Insurance companies are like the women on stage at a gentlemen's club - they want your money, and they'll promise you call kinds of things to get it, but they rarely actually give you anything for your dollars.
comparing what I paid just to put my taxi on the road in 1990 to what it costs to put a CV on the road in a business.....seems the rate were either too high then OR too low now...
to think you can run a $100,000 business on todays highways for such a measly amount is just silly IMO
RMPM01
Seasoned Expediter
I guess I should be happy with $380 per month.
TRY
https://www.grangeinsurance.com/AutoAccel.aspx and let me know how did it go
now that is a reasonable rate..IMO....