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Problem with insurance.......

Discussion in 'Business Fundamentals' started by abbe, Jan 9, 2011.

  1. abbe

    abbe Senior Member
    from RI
    Messages: 718

    I have a issue guys. ive been trying to get commercial coverage for both my truck and for plowing. i have talked to a few companies and i get the same concensus. I get a quote for $600 for one million dollar coverage, but i get a quote of $5k for my pickup truck. They tell me the reason is because of my age. Im 19 but i have a clean record with no tickets or accidents. Anybody have any advice as to a company who would write me for a reasonable rate? maybe around $2k or so? or another way to gain coverage? thanks guys.
  2. shovelracer

    shovelracer Senior Member
    Messages: 525

    Something doesn't sound quite right about that. Yes you will pay more cause of your age, your vehicle, the intended use, and being rookie. I could see that to include your liability and auto in the high risk category. Not sure about RI but in NJ you are high risk for the first 3 years. Maybe they figure you are far more likely to drive aggressively, make mistakes, and expose them to a payout suit. My suggestion is to find an agent and let them do the work for you. I pay about 3 times that so I don't feel sorry for anyone else. There is a cost to doing business.
  3. leon

    leon Senior Member
    Messages: 872


    Unfortunately young man you are in the assigned risk

    pool and you will not be able swim out of it until

    you are 26- good driving record or not.

    And until then you are doomed whether you work by yourself

    or as a sub BUUUUUUUUUUTTTT:

    You would have better luck purchasing a Kubota

    BX2660 with a front loader and a pronovost snow blower

    to do your plowing and you will be road legal at all times and

    insurance will be less for the tractor and implements and you

    can buy a blanket liability policy for 4-5 million dollars for much less

    money and you will use less fuel.

    You could simply haul all the implements and fuel cans with the tractor

    using a landscape trailer with a side deck on one side and carry sand

    tire chains and salt in pails or bags a small single stage snow blower for walks,

    tool box small tools for changing shear pins, grease gun and grease etc.

    I wish I could be more helpfull, but when we were married we were in the assigned risk

    pool for 6-7 years and then they started chargng us less for insurance.
    Last edited: Jan 9, 2011
  4. RobE

    RobE Junior Member
    from RI
    Messages: 29

    My dad uses Farm Family on Airport Road in Warwick for all his commercial vehicle insurance. They are significantly cheaper than who he was using before. I'm not sure who he uses for GL insurance.
  5. Stuffdeer

    Stuffdeer Senior Member
    Messages: 606

    I'm 20, (Just turned 20 in Decemeber), and for the past three years I've only paid right around 1k for my Commercial Auto Policy.

    Now that I have a 2011 F250, the policy is still less than $1,500 a year..

    Look elsewhere.
  6. abbe

    abbe Senior Member
    from RI
    Messages: 718

    All good info. I am going to check out farm family. Thanks a ton
  7. abbe

    abbe Senior Member
    from RI
    Messages: 718

    Well farm family wont write me because of my age and i cant show 3 years prior commercial coverage. WTF
  8. South Seneca

    South Seneca Senior Member
    Messages: 474

    "Google" the type of insurance you are looking for and start making calls. Let us know what you find.
  9. leon

    leon Senior Member
    Messages: 872


    As I mentioned previously your age is the
    overwhelming factor in their collective
    decision plus the fact that you cannot
    provide proof of a track record in
    purchasing commercial insurance.

    Purchasing a tractor with a loader
    and snow blower for the purpose will
    be much less difficult for you for the
    purpose and buying blanket liability
    coverage and kubota product insurance
    for the tractor will be much easier and
    you will be able to save money more
    easily with lower expenses.
  10. abbe

    abbe Senior Member
    from RI
    Messages: 718

    i had thought of a kubota for sidewalks and loading snow. right now its out of the question as im paying for school. My powerstroke is paid for as is the Xblade on the front. i have a gig subbing for good money but i want to get my own insurance for next year. i may have a lead on some but if it comes down to it i may have my father get the insurance.
  11. If you are subbing you still need at least commercial auto(if your personal auto co does not know about/cover veh being used for profit in plowing) as you are a sub in your own vehicle not an employee in a company truck so you are not covered by the contractors auto policy especially when driving to/from sites etc, also you may or may not fall under his liability coverage while on the jobsite either, depending on several factors such as does his ins co know he hires subs etc.
    Also if your father gets the policy more then likely the truck will have to be put in his name and he will have to list you as an employee/driver etc for the coverage to be valid with you driving, which may cause a similar rate etc. If something would happen with him having the coverage and you being the operator the ins co could view it as insurance fraud.
  12. Just gave ya the above info based on my dealings with my insurance company...others may be different. I know my insurance company requires me to submit to them drivers info (lic # etc) for all my employees who drive company vehicles, and I have been told that if I let a few of them drive it would raise my rate and one they told me they would not cover me if I allowed him to drive etc. I also must tell them the total # of employees I have. Also they require that any subs I hire must provide me with a certificate of insurance for at least $1M general liability. Before working as a sub with out your own coverage I would make sure (written proof etc) that you are covered under the Contractors liability policy, as well as obtain the comm auto. I have known of guys who were verbally assured that they were covered by the contractor, UNTIL something expensive got damaged.
    Last edited: Jan 13, 2011
  13. JTVLandscaping

    JTVLandscaping Senior Member
    Messages: 862

    I found insurance much cheaper to get landscaping insurance because it covers plowing in the winter, my auto was pretty high my first year but decreases every year since. My insurance wont really cover me to do gas stations but everything else so far has been covered just fine. The reason for landscaping insurance is it means that my primary income isn't plowing, I guess that makes a difference