Insurance

[TravisT]

I've been lurking for a while and found this board to be very helpful. I have searched for info on this and wasn't able to find answers.

I've been driving for about 5 years, hauling auto glass in a small straight truck for a company. I recently decided I want to get my own truck. Lots of co's in my area are saying they have more freight than drivers, so I want to give it a shot.

I have my eye on a fairly old (6-7 yrs) but low-mileage str. truck w/sleeper, I have begun the process of applying for operating authority, and contacted insurance co.

I have been told that I must pay a min cost of approx. $6,000.00/year for cargo and liability insurance. Is this correct, and also, is there anything else I'm missing that I should be getting taken care of before I can legally haul freight as a common carrier?

Thanks, any help is greatly appreciated.

 

[RichM]

That figure for insurance sounds about right.Try to contact OOIDA on their website and they can give you real info.They can also get you all that you need for your own authority,might have to join,about $40 a year and well worth it.

 

[redytrk]

Sounds really high. I would check with OOIDA

http://www.ooida.com/Benefits/truck_insurance/Truck_Insurance.html

 

[TravisT]

I was really hoping someone would say that!! I'm going to check out your recommendations. Being such a major expense, I'm surprised there isn't more on the board about it, if only the quiet sounds of moaning from the pain.

 

[RichM]

I have heard that you can expect to pay about $500 a month for General Cargo and Public Liabilty insurance.Perhaps I am wrong.

 

[davekc]

In order to have adequate coverage you can expect something in the neighborhood of $4500 to 6000 for complete insurance coverage. Some will vary alittle depending on what the vehicle is. Of course a van would be cheaper than a straight truck.
Rates will be less through a carrier because of a group policy.
The biggest percentage of that high premium is for the cargo and liability.
Keep in mind that these are usually based on state minumums, and you have to be careful that you are not under insured.
Nowadays for example; $500,000 coverage is not enough. Doesn't take long to burn that up in a major collision.
I second;
OOIDA is a great source for obtaining alot of this information.
Davekc
owner
20 years

 

[TravisT]

Yes, I'm not finding any way to stay under $5K, and maybe not even under $6K for $100,000 cargo and $750,000 liability. Compared to those costs, comp/collision is only a tiny fraction of the total cost.

Unfortunately I can only use OOIDA for authority, not insurance, since I don't yet have a CDL, I wish that I could, they seem very professional. What I'm finding is that there are really a limited number of agents and and even more limited number of insurers who will take on a new venture, so I guess I'm lucky to pay any price. The only way to get a lower rate is to go with a less-than-A-rated company.