Question
I figured I'd come here. Can anyone give the estimates of a few insurance prices for a 48 state van fleet based out of Phoenix?
I am attempting to figure out my monthly cost per mile but can't/haven't been able to get estimates on the following insurances....
This is what I am figuring, can anybody fine tune them?
Disability Insurance $150
Unladen Liability Insurance $150
Workman’s Comp./Occ. accident $250
Physical Damage Insurance $150
Liability Ins. $500
Cargo Ins. $500
Answer
Well, you've come to the right forum. Here are some of the basics to help you.
First, keep in mind insurance is specific. The premium will take into account your age, experience, your driving record for the past 36 months, your loss history for the past 36 months, the commodities hauled, the major cities traveled to, the radius of operation, the value of the equipment, the number of years as an owner-operator and more.
While you did not give any specifics as to the type of operation you have, I'll give you some general "indications" of what you can expect to see in insurance pricing, based on unlimited radius, hauling flatbed, refrigerated or dry van and no hazmat.
$1,000,000 Liability between $4500 - 6,000
$100,000 cargo between $1,000 - 2,000
Physical Damage an average of 3.5% per $100 of value
If you have the Primary Liability, you can eliminate the Unladen.
Workers Compensation in Arizona is at $6.57 per $100 of payroll, subject to a minimum payroll for a sole proprietor.
Occupation Accident at $1,000,000 Limit is between $130 - 145 per month, while $2,000,000 is running about $160 per month
Disability Income insurance rates are all over the place. It depends on a number of issues and would be best discussed directly with an agent as there are some sensitive questions which need answers and it would not be advisable to post here.
The other thing to consider is the insurance payment plan. Many policies require a down payment and the balance in installments, ranging from 25 - 35% down and 7 - 9 installments. Other companies offer a monthly continuous plan, but may require a 2 - 3 month deposit premium. Then there are the companies that offer no payment plan, which would require some type of outside financing. Most insurance agents have access to a premium finance company. There will be interest and that can range from 8 - 25% depending on the amount financed, the state lending regulations and your agent's relationship with the finance company.
Hope this helps you in developing your business plan. Good luck to you and feel free to call me personally if you need any further assistance. You can reach me at 800-933-7911 or direct line 928-854-7599.
Connie