Frequently Asked Questions

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Trucking Insurance FAQs

Common causes for overpayment of premium

  1. No agent- Unlike personal insurance, there is no savings for using Progressive Direct for truck insurance. In fact, this is often why many truckers are overpaying.
  2. Change in Operation- Progressive’s rating system is heavily weighted on the commodities you haul. Ex: If you previously hauled logs, cars, boats, but you no longer haul those items, your policy needs to be updated immediately. Changing from hauling cars to general dry freight could easily save $6,000 per truck!
  3. Drivers- Progressive’s rates are also very sensitive to who is driving. We’ve found cases where a terminated driver was left on the policy which resulted in high rates. This alone could cause a $11,000 price overpayment.
  4. Motor Truck Cargo- While Progressive may have the best liability price, sometimes their cargo premium is unfairly high. Car haulers/reefer haulers especially should consider getting their cargo insurance from another carrier. If we became your broker, we could help you find the most competitive cargo premium, but all of your coverages would still be on 1 single insurance certificate.
  5. Deductibles- Unfortunately, many Progressive customers are unaware of the savings potential at different deductible levels. Nothing is wrong with a $1,000 cargo deductible, but you should at least be presented options that could save you money.
  6. Smart Haul ELD Discount- Progressive offers a discount for just agreeing to share your ELD data with them. Savings for new enrollees is 5-15%. Some Progressive customers are unaware of this discount or mistakenly believed they were receiving the discount already.

Answer: While a $1,000,000 combined single limit will be required by almost everyone you haul for, $750,000 is still the FMCSA minimum for truckers who need a federal filing. If you are still a few weeks away from booking your first load but want to get your letter of authority in place, you can start with a $750,000 limit to meet the FMCSA requirement for filings. You will likely need to increase to $1,000,000 shortly after, but this approach will save you some dollars at a time when cash flow is critical.

Answer: If you have little to no claim activity and clean inspections, yes you should expect a moderate decrease year over year. A big misconception we hear is that rates are always higher the first year and then they start going down. That is true if you are assuming a perfect first year in business. Poor roadside inspections and/or moving violations can adversely impact your insurance rates just as much as claims. Zero claims in year 1 does not guarantee a rate reduction.

Answer: Yes because your insurance company is financially responsible for all commercial owned and operated equipment by your company. This is why so many trucking companies prefer a policy that charges premium based on mileage or revenue. Typically, only fleets with 10+ units will qualify but there is at least 1 insurance company offering a mileage-based policy for new owner operators.

Answer: Yes. You are responsible for Auto Liability and Motor Truck Cargo insurance for anyone hauling loads under your MC #. You could pay for the Physical Damage on their equipment, but this is typically left up to the owner operator to insure on their own.

Answer: It is not because we dislike like you. For first year owner operators with their own authority, we have seen annual premiums as low as $8,000 and as high as $40,000. This is for all coverages combined. If you have 20+ years of CDL experience, a clean MVR, and excellent credit, your premium could be less than $10,000 annually. The state you are in and the commodities you haul also have a major impact on your premium. For example: An auto hauler in South Florida might pay $30,000 annually, while a dry van trucker in Wisconsin might be $9,000 annually.

Answer: We encourage prospective and current customers to send us the insurance requirements section of existing contracts or potential new contracts you are considering. Some of the common requirements that cause issues are: Insurance Carrier must be rated A- or higher, Trailer Interchange, Non-Owned Trailer Coverage, Cargo Limits Higher than $100k, Reefer Breakdown, General Liability, etc.

Answer: No. You should never be charged for a certificate of insurance. We are surprised how often this is asked. At BIG Trucking Insurance we have a certificate of insurance platform that allows our clients to generate their own COI’s 24/7.

Answer: Yes, there are insurance companies we partner with that will provide a discount if the trucking company owner is a veteran.

Answer: Yes, every insurance company we work with can provide this coverage by endorsement. However, you must have a signed trailer interchange agreement in place for the coverage to apply.

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