Tony
12-08-2009, 11:26 AM
Insurance is not only smart, but its REQUIRED to become an active legal transporter. The Federal Government requires that liability and cargo insurance be carried for your "numbers" to become and remain active. Insurance is the second highest cost(sometimes the first) expense of running your company. If the truck was the highest cost, then insurance is an obvious runner-up.
New Carrier insurance premiums typically fall between $8,500 and $12,000 per year. Of course this will all depend on the number of cars you are carrying, the age of your equipment, and your driving history being the most important factor. If you have a clean driving record and plan on loading 3 cars maximum, I would expect the premium at the lower spectrum. If you have a 9-car truck and a few points on your license, then you can expect quotes well above the range I posted above.
Most insurance companies offer either Premium Financing through a specialized finance company, or the insurance company will take payments directly. In either case, the down payment will be approximately $1,600 for a new transporter. Since the insurance company has to file proof of your insurance with the government, they have restrictions on when they can cancel. They have to give the government at least 30 days notice of a policy cancellation, so the insurance company will want to make sure they are paid for that time. This is why the down payment is slightly more than 2 times the monthly payment amount.
Get your insurance quotes and try to make a decision on the company. The last thing you will want is to have to fine a claim for accidental damage and find out they won't cover you. Make sure they are a respectable insurer and that they are aware of exactly what you will be carrying. Most brokers will request $50,000 coverage per-car that you can carry. This is almost and industry standard, which you should follow to be safe.
Minimum insurance requirements should NOT be used to obtain your first policy. Slightly exceeding your required minimums is the best bet. You are required to carry $1,000,000 in Liability. Cargo insurance should be carried as listed above($50,000 per-car carried), typically $150,000 for a typical "wedge" hauler. Most 4-car "wedge" haulers find $150,000 in cargo insurance acceptable. I agree here since the typical 53 foot trailer will fit 4-cars occasionally and not on a regular basis.
Insurance should not be bound(paid for) until you have followed the next step completely. Wait approximately 1 week after the next step to get your insurance in place. There is no need to be paying for insurance when you cannot legally run. Wait until approximately 10-14 days before your authority is due to become active.
New Carrier insurance premiums typically fall between $8,500 and $12,000 per year. Of course this will all depend on the number of cars you are carrying, the age of your equipment, and your driving history being the most important factor. If you have a clean driving record and plan on loading 3 cars maximum, I would expect the premium at the lower spectrum. If you have a 9-car truck and a few points on your license, then you can expect quotes well above the range I posted above.
Most insurance companies offer either Premium Financing through a specialized finance company, or the insurance company will take payments directly. In either case, the down payment will be approximately $1,600 for a new transporter. Since the insurance company has to file proof of your insurance with the government, they have restrictions on when they can cancel. They have to give the government at least 30 days notice of a policy cancellation, so the insurance company will want to make sure they are paid for that time. This is why the down payment is slightly more than 2 times the monthly payment amount.
Get your insurance quotes and try to make a decision on the company. The last thing you will want is to have to fine a claim for accidental damage and find out they won't cover you. Make sure they are a respectable insurer and that they are aware of exactly what you will be carrying. Most brokers will request $50,000 coverage per-car that you can carry. This is almost and industry standard, which you should follow to be safe.
Minimum insurance requirements should NOT be used to obtain your first policy. Slightly exceeding your required minimums is the best bet. You are required to carry $1,000,000 in Liability. Cargo insurance should be carried as listed above($50,000 per-car carried), typically $150,000 for a typical "wedge" hauler. Most 4-car "wedge" haulers find $150,000 in cargo insurance acceptable. I agree here since the typical 53 foot trailer will fit 4-cars occasionally and not on a regular basis.
Insurance should not be bound(paid for) until you have followed the next step completely. Wait approximately 1 week after the next step to get your insurance in place. There is no need to be paying for insurance when you cannot legally run. Wait until approximately 10-14 days before your authority is due to become active.