Transporter Plates and Drive Away Transports Anyone ?

I just opened a drive Away busines but can't find insurance to cover transport plates. Any help? Quotes I got were 10k-75k per plate.

 

I am looking for insurance as well. Rates have been 10k-75k per plate. Crazy

 

Welcome to the big time! That is an average quote, even for those of us that have been doing it for a long time as a supplement to our other fleet operations. I had 15 years as a car haul company, used dealer and repair garage and still was quoted $30k in 2017 to add true unlimited driveaway coverages to my existing fleet policy. This was for 5 plates, unlimited operating radius nationwide cargo value up to $750,000 (I specialize in high value speciality equipment). Keep in mind, this was in addition to my already in place fleet policy for our trucks that was $28k.

When I wanted to breakout the driveaway as a stand alone entity the insurance was cost prohibitive.

Driveaway insurance, at least the proper written policies, is expensive and dang near impossile to get. Very few insurance companies write driveaway as a stand alone buisness, usually they want you to already have a fleet of trucks and the driveaway is only supplemental.

Also, when pricing driveaway insurance make sure your cargo policy explicitly declares driven vehicles as cargo -the public liability and even physcial damage on non-declared/non-specified policies does not cover the vehicles you are delivering as a driveaway company. They are cargo and must be covered as such.

Lastly, most driveaway policies have very tight operating radius, meaning usually less than 100-500 miles from your reported main office. It typically takes 3-5 years of operating as a driveaway company without major claims before any of the insurance carriers relax that restriction.

 

30k for 5 plates is doable for me but 20-20k a plate is crazy

 

I am strictly a drive away transporter. Direct bank contract . No owned trucks. You are right it's almost impossible at least financially.

 

One more question. I'm used to 1 mil liability insurance and 250k cargo but does this apply to drive away or is that an insurance on it's own? Or will I be covered with a normal liability and cargo coverage? No ones really had any straight answers for me.

 

The $1 million public liability (MCS-90 form) is for your motor carrier authority. Driveaway is looked at by US DOT the same as auto transport so it requires $1M instead of $750,000. This is part of why driveaway is so expensive, you need this policy but it doesn't actually cover the vehicles you are driving for loss, only protects the public.

Your cargo amount will depend on the value of the vehicles you are delivering as it is the cargo that covers the units while you are driving them. Make sure the cargo amount is enough to cover what you are moving for your client plus any potential accident cleanup or fluid spills, etc. If it is underinsured you will end up paying the difference out of pocket when there is a serious crash.

Be aware, even with good coverage so much is not insurable such as breakdowns. Make sure your contract clearly states who is liable if a truck breaks down while in your possession. I had one try to claim a blown motor was my company's fault on an auction vehicle being transported. My insurance denied the claim, as they should have, and luck for me my contract was clear so the case never went to court.

 

Is there any other insurance clause I need? Thanks for the help. Still trying to find a decent carrier. Had a quote for 25k for 5 plates through canal but waiting for paperwork to fall in line

 

Got insurance options for 20k a plate. What is the going rate for drive away? I don't want to undercut the market. To much of that in freight

 

Aren't you doing things a little backwards?? You open a company without know the cost of things needed to operate and have no idea what the rates should be!?