Starting out need help with Insurance question

I've never been in the car hauling business, just throwing this out there...I would suggest as much insurance as you can afford. If the amount of insurance doesn't cover whatever is needed, then guess who gets sued for the rest? I would also suggest you LLC your company if you haven't already.

One question...I always wondered why guys use a dually with a 3 car wedge, when you can get an decent big truck for nearly the same money. In your case, an older 7.3 f350 is still going to run you $15k and up for a decent one. You could probably get an older single axle freightshaker for that, then add a 7 car trailer ( I know they ain't cheap). You could pick up a full load for a franchise dealer at Bordentown, or Manhiem ect.. and deliver across the tri state and make a lot more $$$ for nearly the same fuel mileage. Am I out of line with this thinking?

 

You seem very confused about insurance. There are several different types of insurance that apply to motor carriers. Since it appears that you will be operating under your own authority (taking loads directly off load boards or from direct customers) you will need to meet the FMCSA minimum requirements to obtain your operating authority. Auto transporters are considered haz-mat haulers but do not require the haz-mat permit or endorsement however, we are required to maintain a minimum of $1 million in public liability. In addition to this you would need physical damage (comp/collision) if your truck or trailer was financed (I highly recommend it even if not financed otherwise an accident can put you out of business), and cargo meeting the minimum requirements of your broker or customers which is usually $50,000 per vehicle position on your truck so a 3 car carrier would need at least $150,000 in cargo. You also will need to declare your trailer so Progressive covers it otherwise they will not ( I know from personal experience with them ). Additionally, if you store vehicles anywhere (meaning pick them up and put them in your yard until you deliver them at a later date) you will need garage keepers to cover the storage of non-owned autos. It is also important to let your insurance company know if you are hauling new, used, or salvage vehicles as not all policies will cover all types of vehicles. Lastly, I suggest a million dollar commercial general liability policy to cover the gaps in the other required coverages. Based in Long Island and running the tri-state area I would expect the proper coverages to cost you about $15,000 in your first year, maybe even more as I just renewed our insurance with 13 years in business and only 2 losses in the last 3 years and it cost $45,000 for the year covering 5 trucks/3 trailers.

 

Brian was my guy able to help you??

 

We were able to get the best price through our current agent in New Jersey, but I will keep in touch with Chuck to shop it again next year. Thanks again for the contact.

 

$25 to $30,000 cash is a healthy start for a 3 car carrier, it will still be tight but possible. Having that much cash to start is better than most of the guys who start up so you are already ahead of many. Keep in mind hauling in and around NY/NJ you will have a lot of tolls, commercial tolls are much greater than regular tolls plus in my opinion the rates are a bit low on the load boards for servicing NYC/Long Island, however you can make a profit if you plan your trips to cut wasted miles and avoid tolls when possible.

Good luck

 

I diss agree with 25 to 30 being enough with most of it being spent before the doors open. You listed ins at 10k truck at 7k and the trailer at 6k. What about authority and fuel and tolls. It will be. Very tight for a while. With out any issues repairs and no need for a pay check you might make it.