Question
Hello Connie,
I need some information regarding changing insurance from full coverage( cargo,bobtail, general etc). This is the story. We retired 12/31/03, but still have the truck and trailer to haul our own products. (farming)We are paying 793.00 monthly for this insurance. We have hauled 4 times this year, and now will not be hauling again till late Sept of this year. With the fuel prices up, we think the best thing is to hold and not sale right now, but can not cancel the insurance or we will loose our authorize. and do not want to pay the money for full covearge. Can we lower the insurance to the very basic, truck is in fenced yard etc, and then up the insurance again in Sept? Any information will be a help, and yes we will change companies.
Answer
"Reducing" coverage can be a problem. If the truck is parked and not being used and you don't have a lienholder, you may want to eliminate Physical Damage. But, then you have to know that if something happens to the truck, no coverage.
If you have filings for both the Cargo and Liability and you eliminate them, then the filings will be cancelled. That means reinstatement fees, etc.
If you cancel the policy entirely, you're unprotected, without authority and subject to new premiums when you decide to go back to work.
This is a very tough time for trucking between fuel and insurance prices. There is no easy fix here.
Now, you may be able to cancel the Cargo since you're only hauling your own commodities, but they you could not haul for hire. If it is your intention to only haul your farm products, then contact your agent that writes your farm policy and see what options he has for your truck. If you do not have a farm policy, look into getting one. It may be less costly than your current coverage.
Answer
Thanks Connie,
We do have a farm policy, but they will not do semi's. It covers everything else, house, farm building, bobcat, loader, crops etc, but no semis. I know we are between a rock and hard place. We do own the 2001 Volvo , and 2001 ravens, so no lien holders to think about. Oh well, just need to think things thru. The Ravens will make a nice flower holder, and the Volvo as other guest room!!!just kidding.
Thanks again for you help
Answer
Connie,
Just a update. They did put the tractor/trailer under our farm policy, can haul our own products, not for hire, but thats ok.did not what to do that anyway. They looked at our record 3 million miles, no tickets, no accidents or claims etc, and covered us for $1050. a year, so I'm very happy. Thanks for your advise and help.
Answer
Susan,
Nice to see things turned out well for you.