Breaking: Wisconsin carrier ceases operations over skyrocketing insurance, maintenance costs

[Mike]

After 13 years in business, 101 Transport Inc. of Hudson, Wisconsin, has ceased operations, citing skyrocketing insurance rates and maintenance costs as the main reasons behind the decision to close.

Tom Dahlberg, owner of 101 Transport, said the death knell for his company was when his insurance rates spiked 70% compared with the previous year after one of his trucks was involved in a serious crash in Utah in 2019.

“Insurance is making it untenable to do business,” Dahlberg told FreightWaves. “The government has got to step in on this issue before more companies go out of business.”

Wisconsin carrier ceases operations over skyrocketing insurance, maintenance costs

101 Transport Inc. of Hudson, Wisconsin, links rapidly accelerating insurance costs to 2019 wreck in Utah.

www.freightwaves.com

 

[mhyn]

a wheel holder's mistake that caused serious accident made a company to go out of business..

 

[mndriver]

My insurance went from $9000/ truck to $16000 per truck because of mistakes by drivers over a 10 month period from October 2018 to July 2019. And that doesn't include the fiasco that put me back on the road in August 2019.

The nuclear verdicts are going to destroy small business owners.

 

[Hammer166]

My insurance went from $9000/ truck to $16000 per truck because of mistakes by drivers over a 10 month period from October 2018 to July 2019. And that doesn't include the fiasco that put me back on the road in August 2019.

The nuclear verdicts are going to destroy small business owners.

I haven't seen the numbers discussed anywhere, but liability costs have to be as big a drain on our economy as over-regulation. We are long overdue for tort reform.

 

[mndriver]

I spend significant time on the phone with my insurance agent. It's tough.

I got my bank to finance my insurance and I pay them because it gives me a net $8000 savings paying lump sum and then 4.5% interest to the back on a $30k insurance bill.. I still have to foot the 25% down as normal insurance binding as well.

So on a $30k insurance bill I'm financing $15,000. I get a 25% discount paying lump sum, less another 25% down payment.

I have no clue what the renewal will be like this year. That kid driving into a bridge taught me how much it takes to piss me off.

And it ain't a truck/trailer being destroyed by a bridge. Or else it just pushed me so far passed that point I was numb.

It has taught me that brokers do not willfully always tell you the value of the loads you carry. Some of it can come back and haunt you majorly. Especially when you suddenly looking at a claim on something with a bill of sale for $230,000 and your coverage only goes to $150,000.

You learn new meaning to pucker factor.

REAL issues that smack a motor carrier/ independent in ways that even a leased operator will never face, much less any company driver. Hell, any employee for that matter even for the office staff.

Some of these guys like @Blood who've been there and gone back know what and where I'm getting at.

You sit there and just watch the discussion some days.....

And scroll on by.

 

[Mike]

For a single truck owner, with authority, insurance cost is basically the deciding factor as to whether it is worth it to be independent or not.

Honestly, I could make less with my own authority, but would still continue to remain independent. That is, to a point. At a certain point, the overall cost of insurance can make it impossible to be independent and that’s a damn shame.

 

[mndriver]

For a single truck owner, with authority, insurance cost is basically the deciding factor as to whether it is worth it to be independent or not.

Honestly, I could make less with my own authority, but would still continue to remain independent. That is, to a point. At a certain point, the overall cost of insurance can make it impossible to be independent and that’s a damn shame.

So true.


Cost benefit analysis every summer

 

[Uncle Birchy]

a wheel holder's mistake that caused serious accident made a company to go out of business..

A small company "YES"......that can be the "Death" Knell

 

[Uncle Birchy]

I spend significant time on the phone with my insurance agent. It's tough.

I got my bank to finance my insurance and I pay them because it gives me a net $8000 savings paying lump sum and then 4.5% interest to the back on a $30k insurance bill.. I still have to foot the 25% down as normal insurance binding as well.

So on a $30k insurance bill I'm financing $15,000. I get a 25% discount paying lump sum, less another 25% down payment.

I have no clue what the renewal will be like this year. That kid driving into a bridge taught me how much it takes to **** me off.

And it ain't a truck/trailer being destroyed by a bridge. Or else it just pushed me so far passed that point I was numb.

It has taught me that brokers do not willfully always tell you the value of the loads you carry. Some of it can come back and haunt you majorly. Especially when you suddenly looking at a claim on something with a bill of sale for $230,000 and your coverage only goes to $150,000.

You learn new meaning to pucker factor.

REAL issues that smack a motor carrier/ independent in ways that even a leased operator will never face, much less any company driver. Hell, any employee for that matter even for the office staff.

Some of these guys like @Blood who've been there and gone back know what and where I'm getting at.

You sit there and just watch the discussion some days.....

And scroll on by.

And folks often ask me why don't I buy my "Own" a Truck ..

Tried a Lease Purchase once 10 years ago or so and couldn't even imagine getting straight up "Authority" and everything else..

A MONEY PIT

 

[mndriver]

And folks often ask me why don't I buy my "Own" a Truck ..

Tried a Lease Purchase once 10 years ago or so and couldn't even imagine getting straight up "Authority" and everything else..

A MONEY PIT

There are other intangible benefits for doing the independent thing.

Not all of it is about money.

 

[vaportrail]

we just had our insurance lady/company at the last safety meeting. It was pretty damn interesting from their perspective in regards to insurance rates, cameras, fmcsa, driver scores, and how each affects the rates, how they decide if they are even gonna insure the company or not. went over a fatal we had a year ago, and another that they were dealing with currently at another carrier (anonymous of course) needless to say that driver is in deep shit for surfing the internet and posting to FB just before the crash

 

[Uncle Birchy]

There are other intangible benefits for doing the independent thing.

Not all of it is about money.

Forgot the "Headaches" too....No Thanks

Don't want em , Don't need em...

When I feel like "Driving" just fill out 5/6 applications and I'll have Carriers Ringing my phone Off the Hook..

At the point and time I get burned out I ask for awhile off or try to give 2 weeks notice leave with a "Hand-Shake" so sometimes I can just call back a year or two later and get going

 

[Uncle Birchy]

we just had our insurance lady/company at the last safety meeting. It was pretty damn interesting from their perspective in regards to insurance rates, cameras, fmcsa, driver scores, and how each affects the rates, how they decide if they are even gonna insure the company or not. went over a fatal we had a year ago, and another that they were dealing with currently at another carrier (anonymous of course) needless to say that driver is in deep **** for surfing the internet and posting to FB just before the crash

My current "Carrier" has TWO in the River afew miles and 5/6 years Apart same stretch..

That's why we are "Banned" from US 12 between Missoula and Lewiston...

Automatic "Termination" First Offense "PERIOD"

If a load shall lead that way They will "Route" and even "PAY" the extra miles

One of those trucks was carrying Ammo for a Military Camp so that one really "Co$t" em especially the EPA getting involved in the Cleanup

 

[Mike]

Insurance will likely become more geared toward miles driven going forward, which puts a higher emphasis on maximizing the rate per mile and keeping the miles low.

 

[mndriver]

Insurance will likely become more geared toward miles driven going forward, which puts a higher emphasis on maximizing the rate per mile and keeping the miles low.

I can get it reduced considerably if I want to limit myself to 300 mile radius. Right now, I am "high risk" because I have unlimited range. It makes a difference. Insurance agent was saying he has several carriers a year that are getting murdered rate wise because they failed to stay in the radius they told insurance. And they do pull your ifta records to compare. You'll be busted. All there is to it.

 

[Mike]

I can get it reduced considerably if I want to limit myself to 300 mile radius. Right now, I am "high risk" because I have unlimited range. It makes a difference. Insurance agent was saying he has several carriers a year that are getting murdered rate wise because they failed to stay in the radius they told insurance. And they do pull your ifta records to compare. You'll be busted. All there is to it.

no, I'm not talking about a radius. Talking about Miles per year. It's not anything official, but talk with the agents is that is where it is likely trending. Actually, I think it is likely already there with some policies, and I think it may have factored in with my policy already.

In a way, it makes sense. I shouldn't matter if a driver runs a higher radius. Heck, it should't matter if a driver runs high miles, but the high miles per year is likely a better determining factor on risk that their radius.

Base location will always be the biggest factor, but keeping the total miles per year lower will likely save you money in the near future.

 

[mndriver]

I'm already keeping under 90,000 it seems. I just don't work that hard.

I like my feeshin' time..

This is a first I've heard of mileage mattering.

 

[Mike]

This is a first I've heard of mileage mattering.

Keep it in the back of your mind, because it might be a big factor in the next year or so.