Understanding why some insurance companies will provide a quote while others will not.
Each insurance company has what is known as an Appetite. If we do not fit into that insurance company’s appetite they will not be able to provide us insurance. For example, Progressive is not able to provide insurance to any insured (trucking company) if the insured hauls loads which require placards. Other insurance companies are not able to provide insurance if the insured haul cars. Still other insurance companies can not provide insurance if the insured hauls local loads only and yet others can not provide insurance if the insured is an OTR trucking company. Many insurance companies are not able to provide insurance until the insured has been in business for a minimum number or years. That minimum can range from 1 to 3 years or more.
As an Independent Owner Operator, I have had policies with three different insurance companies. Each of them did exactly what I needed when I needed it. Each of them, when I had each policy, provided me the lowest premium available to me at that time.
As an insurance agent, I have access to 10+ insurance companies. Each of those companies has their own unique appetite and unique premium structure. To make it even more complicated each company’s appetite and premium structure are both constantly changing.
The very best way to know if you are receiving the lowest possible premium is to ask your insurance agent for the quoted premium from ALL the insurance companies from which they received a quote for you from. Then request a list of all the insurance companies they submitted your application to. Then, if you do not see a company on either list, you can contact another agent and request quotes from from the company or companies that your agent was not able to get a quote from. Additionally there are ways to lower your premium which I discussed in my Confronting a cost crisis article. I would recommend reading that article as well and taking advantage of any of those premium reducing options that may be available to you.
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