Question
I've posted several times about the current truck insurance crisis. At the risk of repeating, in this new year, we're still struggling to get affordable quotes for our clients.
Many companies have had several rate increases during the course of the past year, but what's more important is the stricter underwriting.
The scrutiny of MVR's and a driver's experience is intense.
Longevity is also a player in this game. Insurance companies are looking at driver turn over much more than they have in years past.
Some companies have adjusted their age bracket upwards, increasing the bracket for a "young driver". In once case a 24 year old driver with clean MVR resulted in a 25% surcharge to the base premium. In another, a driver's 2 speeding tickets resulted in the same. That 25% amounted to more than $2,000 annually.
The tightening will continue. It's important to be aware that as this happens, many drivers could be considered unacceptable at policy renewal.
If you suspect you could have a problem, I suggest you contact your insurance agent about 3 months before your policy expires. Ask if there have been any underwriting changes regarding MVR, age of driver, date of hire, etc that could affect you at renewal. Then shop. Be sure to give the exact information to any prospective agent. And remember most quotes are only good for 30 days. So if you find one that seems to work for you, be sure to contact the agent 30 days prior to renewal to verify an possible premium changes.
And most importantly, be safe! It will pay off in the end.
Answer
Local carrier,15 truck operation, family owned and operated, 50% of the trucks run locally and the other half run a 1000 mile radius of the terminal. Drivers home EVERY weekend. Had no at fault insurance claims last year BUT they did have some trucks/trailers damaged in accidents in no-fault jurisdictions. Increase this year>>42%.
How much more would one at fault have cost them??
"Don't Cry Girls, I'll Be Back"
Answer
for $4,870.00. This is the annual premium for a single axle tractor, drop deck tilt bed trailer with only a 300 mile operating radius. I'm (owner-op) 50 years old, no tickets or accidents in the past 30 years. I've never been charged with DUI and am not a recreational drug user. And this is a 16% increase from last year!!! It this operation don't break even this year, it will be that last year I try!
OOIDA said "That truck is too small for us to help you find insurance".
"An armed society is a polite society". Jeff Cooper
Answer
With my husband being an owner-operator, perhaps I'm more sensitive to this insurance crisis, but it certainly doesn't make it easier to swallow.
This is a very serious situation. For years, we have reaped the benefits of lower premiums from a surplus of insurance providers and the intense competition. Now that the pendulum is swinging back, we're screaming.
I personally believe there are some benefits to this crisis in that it will provide a "cleansing" within our industry. Substandard operations will no longer be considered the average trucking operation. Rather, they will find themselves in a position where premiums will force them into a corner making them choose - (either straighten up and fly right or "see ya"). Insurance companies are no longer willing to tolerate poor business and poor safety practices.
Anyone who intends to stay in this business needs do a self-evaluation. The marginal operations will fall by the wayside.
The trucking industry can only benefit and prosper when truckers stop being "truck drivers" and start being "businessmen who drive trucks for a living". Attitude is everything!