Insurance

[truckersgirl]

Curious as to how much you pay for insurance on your tractor and what company you use. My trucker is looking to buy another truck. He's been a company driver for the last several years, but owned a truck about 15 years ago and can not remember how much he paid for insurance. So, I'm attempting to help him gather some information so he can make an educated decision. We are looking at used trucks for now, and he would most likely be pulling a flat and carrying steel on occasion. We are based out of NY state. General dollar figures would be appreciated - just trying to determine if we are talking $1000 or $5000 a year. Thank you!

 

[volvodriver01]

Alot has to do with how good his credit is. A few company's are now requiring payment in full and just starting out with a fresh policy you are looking at $7-10k if paid in full. If doing payments then most generally they require 20% down which is roughly $2,200 and the policy is for $11,000. This is a general idea as I don't know his credit or history.

 

[8978]

Is this person looking for just truck insurance or liability and cargo? Is he wanting to get his own authority?

 

[jayme091381]

Skateboard I'm thinking of getting my own authorities what would it cost? Ballpark?

 

[jayme091381]

I would be getting 2.40 going out pulling a companies trailer. Could I deadhead back and just skip cargo and still make money? Would like to know your thoughts I have never even considered going on my own. And what would be the minimum startup?

 

[8978]

Where are you picking up the load and where are you delivering? How many miles one way?

Before getting into details you need to call an insurance agent and get a quote on $1,000,000 liability and $100,000 cargo.
You may not be able to get insurance or they may want the whole premium up front and that could be anywhere from $6,000 to $11,000.

You need cash to pay for fuel and your bills until checks start coming in also. I started with $15,000. That was not enough!!!

 

[jayme091381]

I can get paid after each trip or weekly. 600 miles would be the farthest.

 

[8978]

It still depends where your picking up and dropping off, state and town and like I said above, check on insurance first. That may end your quest right off the bat.

 

[jayme091381]

Who would you check with? Northland won't insure nothing older than a 2006 truck.

 

[8978]

Who would you check with? Northland won't insure nothing older than a 2006 truck.

I have Northland. 2001 Western Star insured for $35,000 paid in full, not book value.

 

[jayme091381]

Sounds like I need to check with another Northland agent. Never had an accident or incidents. Last ticket was in 97 or 98.

 

[8978]

Sounds like I need to check with another Northland agent. Never had an accident or incidents. Last ticket was in 97 or 98.

When I got my insurance with Northland it was in 2006. Maybe they are just keeping me on because I'm already with them? I think I'm at around $5,800 for my policy. My cargo and liability go down ever year but overall my policy goes up around $300 because of my $35k replacement value.

When I first signed on with them I had to pay in full for the first 2 years. I think it was $6,800 back then and started to go down every year after that. Now I'm on an automatic deduction from my checking account for 10 months.

Insurance costs depend on your age, marital status, own a home or rent, race, level of education, driving record, credit score, where you live, where you park when home, what you plan to haul and where.

 

[jayme091381]

Talked to Northland today 2100 down 700 month for 1 million and 100000 and bobtail and physical.

 

[jayme091381]

8250 total somehow.

 

[8978]

8250 total somehow.

Wow, someone actually called and got a quote!!! Most people just seem to take answers from others as facts instead of making a simple call.

After 2 years with Northland my rate came down a lot. Like $600 the 3rd year and another $600 the 4th year. Just watch out, many brokers and shippers will not give loads to people who have OOIDA, Progressive and any other company that doesn't have an AAA rating.

If you have one of the above insurance companies brokers just won't call you when they see your truck posted or will simply tell you the load is already covered. Some will put you on the NO LOAD LIST so your history with them.

 

[jayme091381]

Yea I asked the guy about OOIDA and he said there insurance aint even rated. Yea I got tired of guessing and speculating myself.

 

[Racer X 69]

I would be getting 2.40 going out pulling a companies trailer. Could I deadhead back and just skip cargo and still make money?

Why would you want to deadhead back? Deadhead does not pay so that $2.40 per mile becomes $1.20 per mile if you go back empty.

You want to have that truck loaded for every mile you can. An empty truck still costs money to run, right?

 

[8978]

Why would you want to deadhead back? Deadhead does not pay so that $2.40 per mile becomes $1.20 per mile if you go back empty.

You want to have that truck loaded for every mile you can. An empty truck still costs money to run, right?

I know a girl who is leased onto Landstar. She does the same thing and does very well. Finding a load that heads back to the same area is a real shot in the dark. Chances are you won't find one and spend a day or two just waiting for one. Getting loaded with the back haul and unloading can take lots of time also. Getting right back for another load does pay off some times. If you do a ton of those loads then step back and look at your bottom line for the week you do pretty good.

Doing more miles also lowers your fixed expenses by a lot.

You can do one load a week for $5.00 per mile and 100 miles but that's not going to pay the bills. I will routinely dead head 300 to 600 miles for my next load rather then sit for days just so I can get another $.50 cents per mile. Sitting for a day can cost me upwards of $1,200 in lost gross revenue.

Going back empty is going to cost you a whole lot less with regards to fuel. Less wear and tear on your truck and nerves. I know WAY too many people who talk big. I ain't moving my truck for less then this!!!! Well, most are gone.

The girl that I pay $100 per week to find me loads is a broker/dispatcher for U.S. Express and does dispatching on the side. Sometimes I take it up the butt. Me, I would tell the broker on the other end to haul it themselves but she knows better. She keeps me moving and the next load more then makes up for the crappy pay on the last load and overall comes out to a decent rate and, I KEEP MOVING and lowering my fixed expenses.

 

[jayme091381]

Yea some guys run for 1.00 mile loaded both ways and make it somehow. I was looking at the year in review thread and one man said he did alright at a dollar a mile. If the wheels ain't turning you ain't earning.

 

[8978]

I live in NH. I have a friend that takes bailed recyclable (Thank GOD for spell check on that one) cardboard from Mass to Waynsboro, OH for $1.35 then comes back with $3.00 per mile. He does this non stop. He does very well. That would drive me crazy. It's like non stop traffic the whole way.

Here is a quick and dirty example of the effects of more miles and how it changes your bottom line with regards to more miles brings your fixed costs down. Sorry, if I seem to be talking down to you.

Fixed costs:
Insurance is $5,000 per year
Truck/Trailer payment $9,000
Plates $1,800
Total = $15,800

Fuel is $4.00 per gallon at 6mpg

25,000 miles at $2.00 per mile = $50,000 Fuel cost=$16,666 ($15,800+$16,666)=$32,466 ($32,466 / 25,000) = $1.30cpm
100,000 miles at $1.25 per mile = $125,000 Fuel cost=$66,666 ($15,800+$66,666)=$82,466 ($66,666 / 100,000) = $.82cpm

So you can see the difference between how your cost per mile comes way down by keeping the truck moving. There are other factors like maintenance goes up but your still way ahead of the game.

Big carriers effect me by taking anything they can out of a bad area for next to nothing. It's because they want to keep the truck moving and lower their fixed costs. With a large fleet this is a massive savings.

Now, you can do the above example by lets say staying in a lane between SC and IN. Getting real good money going from IN to SC and just decent going back. Do that non stop like I do and keep the wheels moving and your sitting fat and pretty. Sit in SC for that extra $.50 per mile for an extra day and you've lost around $1,000 in gross revenue which you won't make up going back to IN and your fixed costs will go up also.