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Archive for the ‘Commercial Auto Insurance’ Category

I have a small private transportation company. I offer flat rates to customers to take them to the airport. I call my service a shuttle but I use a large SUV to carry people not one of those huge buses. Anyway, in order to access the "Authorized Vehicles" area in the airport, the airport wants $1 million in commercial auto coverage. ugh! I am a Small business what are the chances of getting insured??? I am not a taxi service and I only get a few calls each week. I am in Northern Nevada if that helps

You’re NOT going to find an insurance company willing to sell you coverage ‘by the month". I’ve sold this type of Insurance before (and, btw, airports usually require you to carry HEFTY limits of liability coverage to drive on lot usually $5,000,000, so you’re getting off easy at $1mm), and carrying passengers for a fee coverage, is the MOST EXPENSIVE type of insurance you can have (outside of ambulances).

You CAN get insured. But you’re GOING to end up with your state facility auto pool, reinsurance pool, assigned risk pool, whatever it’s called in your state, and you’re GOING to have to pay the full year up front.

For liability ONLY coverage, it’s probably going to cost $7,000 a year, assuming you’ve got a spotless driving record and are over 25. If you need physical damage (if you have a loan on that SUV), it’s going to be five figures, easy.

It doesn’t matter if you do it one time a year, or one time an hour, the rate is the same.

I always see a specific Farmer’s auto Insurance commercial. it’s where a guy is in a test car where they spill coffee on his lap, has him it food and put on lipstick while "driving" to make a point. Then his friend comes in the car and starts dancing, he then crashes into a pole? Im trying to find that specific commercial so I can figure out the name of the song. Its soo catchy! I already tried youtube.

I’d suggest YouTube.

I’m interested in starting a car rental company. The business model is fairly high risk, and I’m having trouble finding a company that will provide auto Insurance. The company will be located in Orlando, FL. If you know of any resources I can look into please let me know. I have contacted GMAC and all the major companies like Statefarm, Nationwide, etc.
Thanks so much! Good information and advice. I really appreciate it.

Look, your attorney, who you’re hiring, has connections to find someone who can do this.

See, the vast, vast majority of people who think about doing this, can’t afford it.

If you came to ME asking for a quote, I’d charge you a $1,000 brokers fee for my time, because odds are very, very slim that you’re going to go through with this – and, you’re right, it’s an extremely high risk business.

Let’s start with the cars. Physical damage on these cars, is going to be prohibitively expensive – three times the cost of the car. Car rental companies pay cash for the cars, they don’t have car loans.

Liability, will depend on the contract your lawyer has drawn up – and your loss control processes. But commercial auto policies for rental car companies, will have a DEDUCTIBLE on the liability section, usually a MINIMUM Of $5,000. Even so, with that big fat deductible, you should budget $5,000 per car, for EXCESS liability – that means, it doesn’t cover AT ALL if the person driving is uninsured.

You won’t find a Standard company like STate Farm, Nationwide, Allstate, Farmers, to write this. Your coverage will either be through a nonadmitted carrier, or your state assigned risk pool – which I"m not sure Florida even HAS.

You need an INDEPENDENT agent, specializing in transportation risks. You can find one, actually, you’ll get a list, by typing your zip code in to www.iiaba.net, and start calling down the line. Most of them will think the same thing I think when I get these calls – it’s just busy work and you’ll never end up buying coverage. So don’t be surprised if THEY want to charge a brokers fee to get the quote, also – refundable if you end up actually buying the insurance.

It takes MILLIONS of dollars invested to start a car rental company. And the people who rent cars, trash cars – ALL THE TIME. Deliberately – vandalizing them on the inside. That’s why there aren’t very many of them.