[SickRick]

Recently obtained my CDL-A. Have some options to run O/O, but having a difficult time here in S. Florida finding anyone to write the FMCSA required (for an MC#) insurance coverage to run interstate. I CAN get 500 mile radius, and shag freight locally for a year (and then get raped from year 1-2 interstate coverage).

Does anyone know of an agent/company that will underwrite Interstate Coverage. PM is fine if you don't want to appear like you're spamming.

Since no one hires newbs out of Florida, and I'm unable to relocate for awhile - I'm seriously considering purchasing a truck and going O/O out of the starting gate. I know it's a less than optimum situation - and I'm aware of the pro's and cons.

I'd appreciate CONSTRUCTIVE REPLIES and not folks telling me how tough it is out there (I know already) or to drive for a "mega carrier" for a year (if they hired from down here, we wouldn't be having this conversation).

Thanks guys (and gals)...

Rick

[GMAN]

I don't know of any insurance company who will write newly licensed CDL holders other than Progressive and they usually place a radius restriction on customers. Some states offer a shared risk pool. That is where several insurance carriers assume a percentage of the risk in case of a claim. Any good insurance broker should be able to help.

[charged]

My dad is a new driver as of last summer. He signed with progressive for the first year and had a limited radius. He recently went with another company for this year which is 48 state. Plus, they are cheaper. I'm pretty sure they insure new drivers too.

Welcome :: Clemens & Associates Online

clemens insurance in lebanon tennessee. The contact my dad has is eric lutz.

[SickRick]

Do y'all (GMAN) know if the "limited radius" allows INTERSTATE as long as it falls in the radius? Can you get an MC# issued with 500 mile radius insurance (as it's probably gotta be 750K/1M insurance that's required anyway)?

Valdosta, Savannah and certain decent freight spots in 'Bama are all within 500 miles, and the few freight boards I've searched show a decent amount of stuff running to at least keep me on line 3 while I'm getting enough time in to move up the food chain.

Getting an Orlando address, puts most of Georgia, Alabama, S. Carolina and all of Florida in my reach - and a Jacksonville address pretty much puts the entire SE Region in reach.

I can live with that for a year.

Thanks for the constructive input guys, I appreciate it...

Regards,

Rick

Who even went down to the LONGSHOREMANS UNION HALL today. No work for drivers, but I WILL go down August 5th and take their HazMat course - the more knowledge, the better. They're also doing a Forklift course soon - again - more certifications never hurt anyone.

[GMAN]

As far as I know the operating radius is based upon air miles, not state lines. If you get federal motor carrier authority it is for interstate travel. There are a few states that have intrastate authority, but unless you pick up and deliver within the same state, it is not necessary.

Most shippers and brokers require $1 million in liability and $100,000 cargo. That is more than the federal requirement. By the way, the hazmat will not do you any good unless you have the endorsement on your license and have hazmat authority. That is separate from motor carrier authority. The license or authority must be renewed periodically and the fee is based upon the size of your operation. I think the minimum charge is $500. And that is for about 2 years. At least that is the way it used to be. I am not sure you could get hazmat authority just starting out. I am almost certain you can't get the additional insurance required for hauling hazmat. Not all insurance companies write hazmat insurance and those who do charge a much higher premium. Hazmat could require as much as $5 million in insurance coverage, if memory serves me correctly. You may want to check the federal website if you plan on hauling hazmat. What I am mentioning is based upon my recollection. Frankly, I don't think the additional expense or hassle is worth it. You are scrutinized much more closely and rates are about the same as for general freight in most cases.

[SickRick]

Originally Posted by GMAN

As far as I know the operating radius is based upon air miles, not state lines. If you get federal motor carrier authority it is for interstate travel. There are a few states that have intrastate authority, but unless you pick up and deliver within the same state, it is not necessary.

Most shippers and brokers require $1 million in liability and $100,000 cargo. That is more than the federal requirement. By the way, the hazmat will not do you any good unless you have the endorsement on your license and have hazmat authority. That is separate from motor carrier authority. The license or authority must be renewed periodically and the fee is based upon the size of your operation. I think the minimum charge is $500. And that is for about 2 years. At least that is the way it used to be. I am not sure you could get hazmat authority just starting out. I am almost certain you can't get the additional insurance required for hauling hazmat. Not all insurance companies write hazmat insurance and those who do charge a much higher premium. Hazmat could require as much as $5 million in insurance coverage, if memory serves me correctly. You may want to check the federal website if you plan on hauling hazmat. What I am mentioning is based upon my recollection. Frankly, I don't think the additional expense or hassle is worth it. You are scrutinized much more closely and rates are about the same as for general freight in most cases.

Thanks GMan.

NOT interested in pulling Hazmat - at least initially. DO have PTX endorsements, so I can pretty much pull/carry whatever I want - within permit(s) and insurance limits.

500 mile radius would definitely put me out of state, thus would likely allow me to file my MCS-150 & OP-1. It's $300 for operating authority (carrier only - not broker or forwarder), DOT # only is FREE (wow, something FREE from the government - YIPPEEE!).

If I can be a little less "stuck up" in what I'm looking for in a truck - I can probably get a truck AND trailer for the same $$ I'm looking to put into a truck. I'd "prefer" a 2006/07 with under 500K miles (Volvo 780, Cummins ISX 500 or better, 13 Speed), but if I'm willing to go a little older, I can get one for 1/2 the $$ ($25K versus $50K). Usually, I'm scamming for NEW - so even considering used is "growth" for me. The primary consideration for newer is the age-requirements for companies like LandStar when leasing on. Don't want to buy something that's too old to lease-on when I finally CAN get out 48-state.

Time to start calling the insurance agents and putting #'s into my business plan to see what's practical and what isn't.

Thanks again - will keep y'all posted on my progress...

Rick

[GMAN]

Unless Landstar has changed their policy they don't have an age restriction for BCO's. BCO is what they call their owner operators who lease to them. If you run your own authority then it should be a non issue. Keep in mind that it is usually the carrier who have cheap mileage rates who have the age restrictions. The smart thing to do is to go with an older truck and trailer and pay it off early rather than spending so much on that first truck. There is no need to spend $50,000 for your first truck. I have one truck with well over 900,000 miles on it that still looks and runs good. It is a 1996. I would look more toward how the truck was maintained rather than the miles. There is no need to spend more than $20,000 on a good truck, especially with the current market. Trailers are also cheaper than is the norm. If you run your authority you need to buy a trailer. You can find a van for less then $5,000 that is in good shape. I have always felt that you get into business as cheaply as possible. New owners get into trouble by over extending themselves. At this point you don't know how much revenue you will generate. That in itself would raise a lot of questions concerning debt. You should be able to find a good truck and trailer with payments less than $1,000/month. When I bought my 1996 my payments were $581/month and the trailer ran about $185/month. I still own both of them and haven't had a payment on either in years.

One other suggestion that I would make concerns brands. I also like the Volvo. I would suggest you make a list of things you want in a truck and then start looking around. Consider other brands. If you get too concerned about a specific brand then you are likely to spend too much on your purchase. A truck is only a tool we use to earn a living much like a mechanic and his tools. If you take your time and be open minded about what you want then you should find a good deal. It could be a Volvo or may also be another brand.

[Bigmon]

Last time I talked to Progressive they allowed you to go outside the 500 mile radius 3-4 times a year.

You have a few more cost items, but they aren't much. UCR is about $39 and joining a drug testing group is about $100. OOIDA will be your registered agent for free. Otherwise, most places charge about $40-50.

[charged]

Did you check with the company I recommended? If you go out of the 500 mile radius progressive will cancel you. My dad went outside the area a few times during the first year he was insured with progressive. They decided not to renew when his year was up and he had no accidents or speeding tickets or claims. Lucky for him that meant he had to search for a company to insure him for his second year. Ths new co. is less expensive and no radius and according to him insures newbies.

Did I also mention that progressive doesn't allow newbies to transport steel coils?

[GMAN]

There are some companies that will exclude certain types of cargo. For instance, automobiles could be exempted unless you pay an additional premium. It pays to read over your policy very carefully.