00:00Let me say this clearly. If you just got your authority and you're shopping for insurance right
00:04now, you are in the most vulnerable position you'll ever be in as a truck owner because you
00:09don't know what you don't know. And insurance companies, they know exactly what they're doing.
00:13I watched brand new box truck owners pay $18,000, $22,000, $28,000, $35,000 their first year and
00:21still be underinsured. Today, I'm going to break down what you need to understand before you bind
00:25that policy. Not hype, not fear, just reality. So let's start here. Why is the first year of paying
00:31commercial insurance for your trucking business so expensive? There's three main reasons. The first
00:36is you have no track record, no operating history, no safety score, no claims history. And to
00:42underwriters, you're a risk. Number two, industry litigation is insane right now. Nuclear verdicts
00:47are up. Lawsuits are bigger. One accident can cost millions. Insurance companies' prices are based on
00:53worst case scenarios. The third is most new owner operators are statistically higher risk. Inexperienced,
01:01poor cash flow, cutting corners, hiring random drivers. Data doesn't lie. So yes, it can be
01:06expensive, but expensive doesn't mean wrong. What's dangerous is buying it blindly. The biggest mistake,
01:12shopping price instead of structure. You're calling five brokers saying who's the cheapest. Wrong
01:18question. You should be asking, what are my liability limits? What is my deductible? What is
01:23excluded? Is cargo per occurrence or aggregate? What's my operating radius listed as? Are household
01:30goods covered? Is unattended theft covered? Most new owner operators don't ask any of this. They
01:35hear a million dollars general liability, a million dollars commercial auto, a hundred thousand
01:39dollars cargo. And they think they're good. They're not good. They're not good. Because what
01:45matters is the fine print. Let me simplify this. There's three main coverages that you need to
01:50understand. The first is commercial auto liability. This protects other people if you cause damage.
01:56Standard, a million dollars. But here's what most people don't realize or don't understand. That million
02:02bucks get eaten fast in a serious accident. Medical, property damage, attorney fees, finito.
02:08The second is cargo insurance. This protects what you're hauling. But here's the trap. Is it per load
02:14or aggregate per year? If it's aggregate, you can hit your cap quickly. Also, does it cover theft?
02:19Does it cover unintended theft? Does it exclude high value electronics, Amazon, final mile furniture,
02:28appliances? Read the exclusions. The third is physical damage. That protects your truck. But what's
02:33the deductible? $1,000, $2,500, $5,000. If you're down and you can't afford the deductible,
02:41truck is parked. Insurance doesn't fix cash flow. You think premiums are random? They're not. Underwriters
02:47look at the driver's age, their CDL status if it's a CDL vehicle, years of experience, prior violations,
02:54operating radius, type of freight, credit profile, claims history. If you're 23 years old,
03:00hauling household goods across state lines, to the insurance company, you're at high risk. Period.
03:06Understanding this initially helps your plan. Now, let me say this. This is why I tell new
03:11authorities to work with specialists who understand their niche, not some random agency that sells
03:16everything from home insurance to boat insurance. You need someone who understands semi-trucks, box
03:21trucks, cargo vans, household goods, final mile, Amazon Relay, OTR, all of it. That's why I partnered
03:27with Log Rock Insurance. They specialize in commercial trucking insurance. They understand
03:32new authorities. They help structure policies properly, not just chasing the lowest number.
03:37If you're about to bind your first policy, at least get a structured quote from people who know
03:41the industry. Link is in the description. Now, let's keep going. Here's the hard truth.
03:46The cheapest policy is usually the most expensive mistake. I've seen drivers not listed on the policy,
03:51wrong operating radius, cargo exclusions they didn't understand, claims denied because of
03:57technicalities. Imagine getting into an accident and finding out you weren't properly covered.
04:02That's just not financial pain. That's bankruptcy level pain. Insurance is not an expense. It's risk
04:08transfer, but only if it's structured correctly. Before you even call for a quote, clean up your
04:13driving record. Know your operating radius. Know your freight type. Decide if your local or OTR
04:19have capital for higher deductibles if necessary. Understand you may need 20 to 30% down. Preparation
04:26lowers chaos. Chaos raises premiums. Having a new authority is exciting, but excitement without
04:32structure is dangerous. Insurance is not something you rush. It's not something that you buy emotionally.
04:37It's not something you choose off price alone. If you're starting right now, slow down. Structure it
04:43properly. And if you want professionals who understand this space again, check out Log Rock Insurance in the
04:48description below. Don't just get insured, get protected.
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