Or actually Own a Bank themselves....
What happened to Eclipse Expediting?
- Thread starter mikedrives191
- Start date
Or actually Own a Bank themselves....
I should have said have a good-sized line of credit ....
Anyway you look at it, Eclipse's problems were caused Eclipse.
john, just a simple question here: in the multi-carrier models, each owner operator is still required to have $1 million in auto liability and $100k in cargo (paid for by themselves, paid directly to their insurance company);
and how much is the carrier themselves required to have for insurance? on each unit? and for the whole company?
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Ironically, as I'm catching up on this thread, I've just begun the prep for my procedure tomorrow and it involves... Laxatives...
LOL... So, thank you American Taxpayer DaveKC.
Not an easy answer. The carrier is required to have min 750k liability on all units it operates. Now the contract the carrier signs with a customer, broker, 3pl, or other carrier may require 1 million or more. Many of the multi carriers will go get the proper insurance and coverage on one vehicle (even if it is a car) and present that. Knowing full well it is not the policy that will ever pay out in the event of the claim. They then have their individual units go get their own policies. We have seen plenty of times where they allow the individual owner operator to have lower limits than what the contract they signed required. As well they are policies that have mileage radius limits or local delivery policies and thus will deny coverage in the event of an accident. Easy sign is when an owner operator posts how he got his insurance for $1000 when it costs the rest of the world $5000 for instance. As well the broker or customer has no way to monitor or even know if coverage is in place or if it is valid on all these individual owner operators. In my personal opinion if a motor carrier wants to be a motor carrier than they should be following the law and insuring their units. The excuse of I can't afford to do that is a clear case of you shouldn't be operating then. You start with a few and do it right and grow slowly, steadily, compliant and financially sound. A laptop, your kitchen table, a bogus insurance policy, and wanting a hundred units while factoring and holding back pay for weeks is not a valid business model or the American dream. It does nothing but hurt those small companies that follow the rules, work hard and build solid reputable businesses. Just like a building....the foundation is where the strength or weakness lies.
just trying to get my simple little mind around the numbers; the law requires a minimum of $750k on each unit (which either the carrier or the owner operator pays for), and the owner operator has his own $1m, then is the law not taken care of, and then some?
The carrier is supposed to have $750k minimum (although most every shipper requires 1 million) on every truck they operate under their authority. The owner operator is really not supposed to be the one to carry primary auto liability coverage. It is simply a way for the carrier to transfer the financial burden of the insurance off of themselves.
Now a FEW do this but do it right. They have their units be exclusive to them and they have the policies for both primary and the units written by one agent and one provider so that it is all monitored and coverage is verified. They then go for TEANA VOI certification which helps assure everyone of legal coverage and compliance.
Now a FEW do this but do it right. They have their units be exclusive to them and they have the policies for both primary and the units written by one agent and one provider so that it is all monitored and coverage is verified. They then go for TEANA VOI certification which helps assure everyone of legal coverage and compliance.
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Very true. I think a lot of companies are passing their insurance costs off to the operator. Tough sell as the operator gets hit twice. Once from the carrier and then through their own bobtail policy. Just another reason we won't do the cheap freight.
There are exemptions to that low rate .... But that would be splitting straws Too fine
Well replacement vehicle according to CIF's policies more than 60% of the policy
It seems to work out about $1000 for every $10,000 and replacement value
It seems to work out about $1000 for every $10,000 and replacement value
THIS is why I'm with Square One now
It's time to lay down the law and ensure that everyone becomes compliant. That alone will separate a lot of the chaff from the wheat. Another thing we can do is to inform the authorities about the need to weigh cubes (six-wheel ones at least) so that we can knock down some of the overweight, noncompliant activity out there.
As for me, my sh*t has always been legit to the best of my knowledge. Time to be paid accordingly.
If I got a brand-new van my insurance would jump up to almost 7,000 a year!!! I haveThe basic CI S expediter package
That is because physical damage insurance changes as the value of the vehicle changes.
This is about liability insurance. If a van is paid off with no lien you don't even have to carry physical damage insurance.
Ask your insurance company how much of that is in finance charges on the premiums themselves.
If you do not put down at least 20% of the term's total premium as a down payment, then they add the finance charges back in to your payments.
Most insurance companies do not break it down as to how much they charge to finance their terms (most Progressive agents do not either). You have to pry it out of them, and they still may not tell you. You can assume at least 10 to 20% of your insurance costs are for their finance charges.
Insurance companies are the next thing to organized crime. At least Jessie James and John Dillinger used guns to steal you blind, these insurance companies do it with their "mandated law requirements", just saying.
Exactly the guys with these $50,000 New vans are paying $6,0000 $7000 in insurance rates Iam paying peanuts in comparison
The rates on having proper insurance are not really that high so it should not really be an excuse
Umm??? Yes they do. We pay 7.50 per week per vehicle at Panther for what is called a "liability limiter". Got 10 trucks, that is 3900 a year. They say that is so the deductible stays at $1000 per vehicle. And of course you have the other side. Some nameless carriers have a deductible of 5k. Just basically different ways of picking your pocket.
my policy is on the cheaper side BECAUSE..no replacement rider...that is where all the money really is....My van with all its miles has NO real value..I was advised I'd do better saving the $1,000 cost of $10,000 worth of replacement plus the $1,000 deductible every year....I was told the first 2k would be down the drain anyways....on a van they will elect to scrap out and not payout....