My first post here so: Hi everyone!

So I've decided to take the plunge and go independent. I just got 3 insurance (liab. $1million, cargo $100,000, and physical damage) quotes and would very much appreciate your advice on which one to choose.

1st one: $8,500 a year

2nd one: Great American, $8000 a year

3rd one: Graet West, $4998 a year (have been with them for the past 3 years for physical damage and bobtail when I was leased onto some other company).

The coverage limits look the same, with the 3rd one appearing slightly better in some details like uninsured motorist, theft, etc.

Obviously, I'm looking at the third one most favorably but would like to hear opinions from you experienced guys out there.

I have 4 years experience OTR, dry van and was leased onto 2 other companies for the past 3 years. I mainly do Chicago - California routes.

What do you guys think? Any suggestions will be appreciated

Thanks in advance,
Derek

 

Welcome D.M
I usually do not chime in on topics on here but I will since you greatly helped me with the drug consortium.
I signed on with an agent in stockbridge, Ga called Cooper Insurance.They got me a Northland policy for $4039/yr
This covers the same coverages everyone has with 1mil liabililty,100k cargo.This includes 1000 deductible for uninsured motorists.On the physical coverage, my equipment is worth only 25k.
No one can get this deal anywhere.I sent some folks to Cooper insurance and they got a quote for $7500.Their equipment defintely cost more than mine but I guess my high FICO and my years at LANDSTAR helped a lot.The only downside is that I have limited my self to making frequent trips to CA.I told them I only go to CA 3 times a year.Before them, I called all the commercial insurances you can think of and no one can touch this deal.

 

Thanks, henboy.

My equipment value is 30k.
I might give them a try but with me mainly going to CA, this might not work.

 

Don't give up.It might still work.the quote may just be a bit higher.As for Roger and tell him Henry Tannor referred you.Their # is 770 389 0089.
I will be calling them this week to get a quote on a driver.Even with a driver with 2 yr CDL, the quote they gave me was still comparable to my payments.They finance their payments through Primerate.
The owner, Mr. Cooper did my BOC 3 filing for $550.The wife Betty, handles claims.I read somehere that you were getting your authority.They can do everything which includes the BOC 3 and the authority for $550.
Some agencies are even charging a grand for this service.

Let me know about your progress.

 

When I had my trucks I always went with Great West. They were a very good company. Ask your agent if they can do any better on the rate. Especially if you have a safe record.

 

Thank you guys, I'll talk to both.

As for my authority, I'm the kind of guy who always tries to cut the middle person so I got it myself from FMCSA ($300) and, as GMAN often suggested in posts I read over the last few months, I became an OOIDA member - so I got the BOC-3 (process agents) from them for free (their insurance quote was the highest, though)

So, so far my costs have been:

- authority: $300
- OOIDA membership: $25
- drug consortium: $75
- pre-employment drug test: $60 (med-stop in Chicago)
- IFTA: $3.75 (decals) + $45 (for fuel to get to their main office in Springfield, IL from Chicago) + 6hours of my precious time if I decide to go there myself instead of waiting "a few weeks - Sir, it may not even happen this year if you do it by mail" as the IL IFTA people told me on the phone:banghead::banghead::banghead::banghead:
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Total: $508.75 unless I'm missing something

Still waiting for van trailer lease approval from a local company ($375/month) with 1 month minimum agreement.

Now, I'll be putting all my efforts into securing work for me and my truck. I'm thinking of making simple leaflets looking the same as my business cards and sending them out to brokers and small shippers with good credit ratings. What do you think of that? Any better suggestions?

 

I am not sure about leasing since I have never had to lease or make any kind of payments.375/month in trailer lease is like 95/week.Will you own the van when it is paid 4?Why would you go "VAN".I may be wrong with my assumption but why not get you reefer?.The payments may be a bit more, but quite worth it.Even with made-business cards that you plan on dispersing to brokers, the going rates on the board are pathetic.Most of the van guys are getting $1/mile-1.20/mile for about 800 mile runs.How can one pay the trailer lease, insurance and unexpected brake downs with these rates.At 1/mile most of them are not even trying to budge on the rate.
I am pulling a step but I am researching on a reefer equipment as the 2nd truck.

 

That's my point exactly. What I meant was to look for a way to establish some good long-term relationships with customers (be it brokers or shippers) because I would never even wave my pinky finger for the rates you mentioned. I do know my expenses ($1.11 per mile BEFORE any profit - driver pay included - meaning if I was to put a driver behind the wheel and give him a 1099..)

If it turns out I would have to drive only for the expenses or make a tiny profit from possessing and keeping equipment worth of tens of thousands of $ and eating up my nerves figuring ways to keep it running, I will simply get rid of it and look for something else to do.

The thing is, I need to try and see if I can use my 4 years of driving experience through ice and snow and mountains as well as months/years educating myself on business aspects of trucking to a better effect than being leased onto an intermediary company and "make" $1.08/mile which after all expenses is what a company guy makes.


And why a van - because that's what I've been doing for the past 4 years so it seems a natural choice. It may not be the beat choice, though, I know. I just want to minimize the initial stress . There's no buy out option but I'm not willing to shell out my hard earned cash on buying equipment until I can see the business working for me. I can always return it after a month

Plus, I'm ready to be flexible - if IL-CA really proves to be hopeless, I'll be willing to change routes.

P.S. It's all still only theory for me as I still can't start running - probably need a couple more days to get everything together.

 

If i may jump in,

Make sure the insurance company is a A rated company,which means they pay their claims timely and don't have any financial trouble.Also, if you plan working with bigger brokers like tql, ch robinson,etc call those and ask them if they don't have any restrictions with that insurance company.From my experience i had Canal insurance ,and some offices would not give me a load because of some hidden policies that the insurance company had.Preferably, i would not have a financed insurance plan,and have the option to drop it to just liability in the months,time you don't work.Works great in my case,since i'm in the military too and when i get called i just parl the truck.

 

Did you try Northland?