I can't get insurance, what do I do?

Question

I am 20 yrs old, I need commercial auto insurance for two trucks. Isuzu NPR-HD's one new, one used. (2007 New, 2001 w/177K) both at 14,500 gvw. the trucks are small and the business idea is simple. Haul away peoples unwanted stuff to the dump, but the insurance won't cover me. Anywhere. I've been told to try to find a start up insurance company to take a gamble one me, how do I find one? What else can I do? Please advise. Thanks!!!

Answer 1

Progressive will write this. It's REALLY REALLY REALLY expensive, because 1. you've got a driver under 25 (you) 2. you've got a 2007 truck and 3. you're hauling for a fee - just about the highest rated class there is. Plus, they'll be rated retail (going to people's houses) use, intermediate range.

Even if you were 30, this would cost you, oh, maybe $18,000 a year. But as a 20 year old, I'd expect it to cost you closer to $30,000.

My suggestion? Buy old trucks. Start with ONE, not two. Pay cash for the truck, or get a personal loan, so you only need to carry liabiltiy for the truck. Then you might find the pricing to be just under $8,000 a year.

Answer 2

Go to a independent insurance agent, look in the phone book. Ask your auto insurance agent who he refers his nonstandard business to. Progressive is the #1 writer of commercial auto in the US call a local agent, If you didn't get any help check online they are wanting to help you. Heck call me I could use the money if you are in TN or GA. I am a agent in Chattanooga, TN.

Most of the online quote request places you go to will want information that will be sold to a agent that will call you later. Try Progressive at http://progressive.com/

The end price has to many variables to give a estimate. Here are some of the things that drive a commercial auto rate price.

1. Where you are (different counties as well as states have different rates)
2. The original price of the truck you insure.
3. The size of the truck (the bigger it is the more damage you could do)
4. Your credit now plays a part in almost every state (poor credit means that you might not have the money for regular maintenance. That is the flimsy excuse that they use)
5. How much experience you have in the field of work.
6. The radius that you operate in.
7. The age of all the drivers (the younger the driver the higher the price)
8. Full coverage vs. liability only (you can save over half the insurance price by not needing comprehensive or collision)
9. The type of driving (a set plan vs. a for hire has a rate difference)
10. Prior insurance (if you have prior commercial insurance and change it is cheaper)
11. Having Commercial Liability (if you have a Commercial Liability policy you get a slightly cheaper price)
12. Your specific state regulations (every state has its own rules that companies have to comply with)

I have a client with a commercial auto policy that cost him about 2K a year per vehicle he adds note that is liability only. (dump truck, bucket truck, ect.) His big nice 50K Ford pickup cost him close to 3K.

Most if not every state has a "pool" that makes companies take insurance policies at a state set price (It is high). The problem with trying to get a pool policy is that insurance agents work for commissions. The pool doesn’t pay for the amount of labor involved in writing and up keeping the policy. Most agents will quickly run from anyone that can only be insured in the pool. But agents are more likely to write them if it is for a client that they already have other policies for. Agents also have a idea of who is willing to write that type of business. If you call someone and they turn you down ask them to refer you to someone else instead of just calling the next number in the phonebook. Last of all be patient with the agent, I had a client that I was trying to write a nonstandard policy for. The company took 3 weeks to get me the quote, not the policy the quote. Call back once a week to check on the progress if someone is willing to do the legwork be nice and not pushy.

Answer 3

Actually, most states have a state-mandated high-risk insurance pool for just this purpose (because most of them require insurance on any vehicle with an active license plate.)

However, you might have a difficult time finding anyone who knows or wants to quote commercial risks through them.

If you're in Virginia, it's called the Virginia Automobile Insurance Plan. I couldn't tell you the names in other states (but I'd presume they're equally original!)

At any rate, you may want to check into an agent who specializes in commercial/business insurance. (Most don't. And it's a completely different world in a lot of ways.)

However, I'm certain that you'll find the rates are exceptionally high, particularly since I assume you would need full coverage on the new truck. When I say high, I mean you're probably looking at $2,500 per year, per truck for just the liability. And that's a conservative estimate.

Answer 4

Whats up with all you link spam faries on this thing.. Have you no shame at all!

You could also try some E&S (excess and surplus) companies and see if they'll do it. The independent agent will also be able to help you locate some. If that still doesnt work, get on InsuranceJournal.com they have the most comprehensive list of stuff available

Answer 5

I recommend one to try this website where onel can compare quotes from the best companies: http://INSUREQUOTE.INFO/index.html?src=5YAWds13tGY73fDG1

RE :I can't get insurance, what do I do?
I am 20 yrs old, I need commercial auto insurance for two trucks. Isuzu NPR-HD's one new, one used. (2007 New, 2001 w/177K) both at 14,500 gvw. the trucks are small and the business idea is simple. Haul away peoples unwanted stuff to the dump, but the insurance won't cover me. Anywhere. I've been told to try to find a start up insurance company to take a gamble one me, how do I find one? What else can I do? Please advise. Thanks!!!
1 following 7 answers

Answer 6

you have another option other than our own policy.. if you another company n the same industry.. you maybe able to sub-contract for him.. do a contract with him that you will sub for him.. you get to build your client Base.. he get a percentage, that would offset his insurance his ins cost. Have an attorney draw the document. Make sure he's a good friend.. preferably one that's looking to retire in the next few years. it's a win-win for everybody.

Answer 7

Try the below company

Answer 8

Try this site. It has multiple companies that will give you good auto quotes and be careful how much you disclose about what you do exactly