Commercial Auto questions

[Dumptrkr]

I have been in the commercial dump truck business for over 30 years. I own one commercial dump truck, and haul rock sand & gravel within a 200 mile radius of my yard in California.

I have had commercial auto coverage through the same insurance company since I started. This year my premium increased by 90% over last years. Due to the increase and the fact that I have been unhappy with my current carrier for a couple of years now I decided to reach out to other companies to get a quote.

What I am learning in my attempt at getting quotes from other companies is that over 75% of the agents that I have contacted have some sort of signed agreement with the carrier who I am currently with and they can not quote me. The few agents that have been able to quote me are all way over the current amount that I am currently paying.

Someone in my position at this point would probably just stay with the current company that I have. However I have several reasons other than the premium why I want to change companies. I have flat out caught them lying to me about something on my drivers CLUE report and trying to increase my premium. I have received notices from them telling me they are going to increase my premium a second time because of my drivers driving record and they want to back date the increase by over two months. They blamed this years increase in premium was due to my credit report, when my credit has never been as good as it has been this entire time. You call their office and each time you get different reps that cannot give you any answers to your questions because they themselves do not understand why. Even more importantly, California made me purchase a brand new truck due to emissions and I cannot afford to pay the higher amount they are requesting.

Last year the cost to insure just one commercial truck, between commercial auto and Work Comp was $13,000. This year I am looking at close to 30k!! California is making it harder and harder to stay in business for yourself. Why am I having such a difficult time trying to insure one truck, with no losses? How is my insurance company allowed to monopolize the market, and why are other companies quoting the same coverage for a substantial (over $10k) amount more? Am I the only one who thinks that close to $30k per year to insure one truck is too much? I understand inflation, but all of this over night isnt working out for me.

I am hoping that someone has a few suggestions or alternatives to help me in this situation so that I can justify my staying in business any longer.

 

[renee15]

I have been in the commercial dump truck business for over 30 years. I own one commercial dump truck, and haul rock sand & gravel within a 200 mile radius of my yard in California.

I have had commercial auto coverage through the same insurance company since I started. This year my premium increased by 90% over last years. Due to the increase and the fact that I have been unhappy with my current carrier for a couple of years now I decided to reach out to other companies to get a quote.

What I am learning in my attempt at getting quotes from other companies is that over 75% of the agents that I have contacted have some sort of signed agreement with the carrier who I am currently with and they can not quote me. The few agents that have been able to quote me are all way over the current amount that I am currently paying.

Someone in my position at this point would probably just stay with the current company that I have. However I have several reasons other than the premium why I want to change companies. I have flat out caught them lying to me about something on my drivers CLUE report and trying to increase my premium. I have received notices from them telling me they are going to increase my premium a second time because of my drivers driving record and they want to back date the increase by over two months. They blamed this years increase in premium was due to my credit report, when my credit has never been as good as it has been this entire time. You call their office and each time you get different reps that cannot give you any answers to your questions because they themselves do not understand why. Even more importantly, California made me purchase a brand new truck due to emissions and I cannot afford to pay the higher amount they are requesting.

Last year the cost to insure just one commercial truck, between commercial auto and Work Comp was $13,000. This year I am looking at close to 30k!! California is making it harder and harder to stay in business for yourself. Why am I having such a difficult time trying to insure one truck, with no losses? How is my insurance company allowed to monopolize the market, and why are other companies quoting the same coverage for a substantial (over $10k) amount more? Am I the only one who thinks that close to $30k per year to insure one truck is too much? I understand inflation, but all of this over night isnt working out for me.

I am hoping that someone has a few suggestions or alternatives to help me in this situation so that I can justify my staying in business any longer.

Get a copy of your Lexus Nexus report. Ins carriers rely on third party info. Don't blame the agent......

 

[Dumptrkr]

I'm sorry, maybe I didn't make my comment clear. The issue with the CLUE report was a couple of years ago, which was the beginning of my unhappiness with the company. I don't see where I mention anything about blaming an agent for anything. In fact, I have always dealt with the insurance company direct. My agent doesn't get involved.

 

[AZDave]

Not a CA Agent, but I do insure a fair amount of Commercial Auto and I can tell you all Carriers are increasing rate on that line, country wide, big time. Some more than others. Nuclear verdicts and unforseen inflation are the major drivers of the increases. No doubt you have heard this from the brokers you have been talking to.

If you were in AZ, most likely Progressive would be my best priced policy, but not my best company to offer. By the sounds of it, I think you may be with them already.

Unfortunately the insurance climate in California is lousy, and insurance companies have bailed and/or closed their doors for new business, so a giant lack of competetion exists.

Sounds like you have checked with other Independant Agents and they seem to be saying the same thing. You may be with the lowest cost carrier for your dump truck. California, so sad. Just one little Proposition has messed your state up.

 

[renee15]

I'm sorry, maybe I didn't make my comment clear. The issue with the CLUE report was a couple of years ago, which was the beginning of my unhappiness with the company. I don't see where I mention anything about blaming an agent for anything. In fact, I have always dealt with the insurance company direct. My agent doesn't get involved.

so one should ignore this comment you made?
"I have flat out caught them lying to me about something on my drivers CLUE report and trying to increase my premium"

 

[Markthebroker]

I have had commercial auto coverage through the same insurance company since I started. This year my premium increased by 90% over last years.

I am a Ca commercial broker. This is not uncommon - I am seeing this a lot, especially with big trucks.

What I am learning in my attempt at getting quotes from other companies is that over 75% of the agents that I have contacted have some sort of signed agreement with the carrier who I am currently with and they can not quote me. The few agents that have been able to quote me are all way over the current amount that I am currently paying.

Unfortunately this all makes sense and is not surprising.

Someone in my position at this point would probably just stay with the current company that I have. However I have several reasons other than the premium why I want to change companies. I have flat out caught them lying to me about something on my drivers CLUE report and trying to increase my premium.

Sometimes carriers use CLUE reports that are different from what you use or can access, so they may not be lying. The carriers are raising rates right now, and its to cover the losses they are taking in California, so they are just attaching reasons why. Sometimes they are real reasons, sometimes they aren't.

They blamed this years increase in premium was due to my credit report, when my credit has never been as good as it has been this entire time.

The carriers use different credit reports than banks and credit cards. Very different. But again, it doesn't really matter. Rates are going up. They can blame it on the fact that your business is at an address with an odd number if they want. I've seen "reasons" that are about that ridiculous. You think I'm joking - I'm not.

Even more importantly, California made me purchase a brand new truck due to emissions and I cannot afford to pay the higher amount they are requesting.

Sounds about right.

Last year the cost to insure just one commercial truck, between commercial auto and Work Comp was $13,000. This year I am looking at close to 30k!! California is making it harder and harder to stay in business for yourself.

Yup. I see it every day.

Why am I having such a difficult time trying to insure one truck, with no losses?

It's statewide, and to a lesser extent, nationwide.

How is my insurance company allowed to monopolize the market, and why are other companies quoting the same coverage for a substantial (over $10k) amount more?

They're not monopolizing the market. You have other options as you've stated. You just don't like the other options, understandably.

Am I the only one who thinks that close to $30k per year to insure one truck is too much?

No.

I am hoping that someone has a few suggestions or alternatives to help me in this situation so that I can justify my staying in business any longer.

Stay with your current carriers. Sorry, that's the best suggestion. Be glad they're not cancelling you. I am in the process of going through a similar process with a cement contractor I insure. They're being cancelled.

You're work comp is probably holding stable, I'm guessing. Be grateful for that.

 

[Dumptrkr]

@renee15
so one should ignore this comment you made?
"I have flat out caught them lying to me about something on my drivers CLUE report and trying to increase my premium"

This comment was in reference to the INSURANCE CARRIER telling me that my driver had an at fault accident on his CLUE report. Therefore they raised my premium. Because I am not the driver and due to privacy laws, I have no right to see the report unless it is presented to me. It made my premium almost double what it was initially. So I started searching for other insurance elsewhere. In the meantime I sent a letter to my insurance and asked them to take into consideration the length of time I had been with them(Over 20 yrs), no losses etc, and asked that they reconsider the increase amount. They refused to adjust the new amount. When I spoke to another agent to get a quote the agent asked me why I wanted to switch insurance carriers. So I explained to him the above information. Thats when he told me that the drivers CLUE report showed an accident but the report stated NOT AT FAULT. He then forwarded a screenshot of the report and told me it is the same report that the insurance carrier gets. So I wrote another letter to my insurance carrier asking them to explain to me why they were increasing the premium when clearly it states that the driver was not at fault and I sent them the screenshot, and they had no choice but to lower my premium back down to where it was before. I understand that people make mistakes and perhaps it was an oversight at first glance. But I wrote them a letter that made them look at my policy a second time and it wasn't mentioned. So if this isn't a clear example of them lying then I do not know what is.

 

[Dumptrkr]

An increase in premium over a driver being added brings up another sitution. I added a new driver to my policy in April. My insurance carrier pulled his MVR and his CLUE report. The MVR showed an accident two years ago, but no points were assigned to his record nor did it show the driver was at fault. The CLUE report showed nothing about the accident. My insurance raised my premium by over $1,200 and stated that if I could present a letter from the insurnace company involved stating he wasn't at fault, they would reduce my premium back down. A couple of months go by and I obtain a copy of the police report. The accident happened on a country road, when the driver was driving a water truck full of water. He negotiated a corner and found a vehicle coming toward him and they were over in his lane. In order to miss hitting the vehicle the driver over corrected and due to the type of load being water it turned the truck over. The other vehicle kept on driving and didn't stop. I sent the information to the insurance and they responded. They told me due to the fact that he was the only vehicle involved, no other vehicle was hit, it makes the driver at fault. They then told me they were raising my premium another $4,000 and they are going to back date the additonal amount to when I added the driver. So 3 months! I don't see how it is legal for them to back date an increase in premium. I also don't see how it is legal for them to lie about whats on a drivers CLUE report to get more money out of people, but they seem to be doing it without repercussions.

 

[Dumptrkr]

When adding a driver to a commercial auto policy, are insurance companies allowed to increase your premium, then increase your premium a second time for the same driver three months later and backdate the second increase 3 months?

 

[Markthebroker]

You've already been given advice about your best next steps. What else are you looking for?