Overview:: This is the policy purchased
This client ended one year in business. This was a renewal. Rates should be better after his second year and markets really tend to open up and offer better rates after 3 years in business if you are running your trucking company correctly as far as DOT inspections and your drivers have good driving records.
An important point to keep in mind when comparing quotes is the number of years you have been insured. And it is suggested you create an apples to apples comparison chart to get a more realistic view. We do that for you. We shop and compare as many quotes as possible to help you find not only the best pricing but also the correct converges. What is the point in buying a policy if it will not offer you the coverages you need and are required to have in place.
Client based out of South Carolina (each state can have different rates and savings)
- Owner operator
- Clean MVR
- Clean inspection scores
Coverages:
- Primary liability $1M
- Cargo $250k in coverage
- Physical Damage. TIV (total insured value) $166,500. Breakdown: 1 truck valued at $110k. 1 trailer value at $26.5k and 1 trailer valued at $30k
- General liability. $1m / $2m
- Hired auto. $1m
- Uninsured and Underinsured Motorist $75k
- Deductibles. $1,000
Cargo covered:
- UIIA containers
- Dry Van
- No radius limit
- Cargo form is broad form
Conclusion:
A couple of coverages which increased the policy cost here is the high value truck. This one has a stated value of $110k. In most cases physical damage is charged based on a percentage of your total TIV. The lower the stated value of the truck. The lower the policy cost. Another cost factor was this client has $250k in cargo when $100k is the standard cargo coverage required. This increase the policy cost around $1200.
The primary auto liability for $1m in coverage with a $1k deductible was $14,576. This a very good rate. Again the major cost factors was being set up to work with the UIIA, TIV and the $250k in cargo coverage.
Where did they save money: (keep in mind this policy was written on Admitted paper with an insurance company with an A+ AM Best Rating.
- The saving on the policy itself was around $800. And then because the policy was purchase direct from the carrier. The client saved around another $1300 because there are not financing charges (see the Prime Rate section for a better understanding how Prime Rate affects your cost of funds). Bottom line is this is a good savings not matter how you look at it and the policy coverages where much more liberal.