commercial truck insurance

Discussion in 'Business Operations' started by firstclass1, Apr 6, 2007.

  1. firstclass1

    firstclass1 LawnSite Member
    Messages: 11


    I need some help I own 06 Chevy 2500HD. I cut about 50 lawns a week, plus I work a full time job. Right now I "personal" auto insurance on my truck. In Michigan my insurance agent told me ounce you letter your truck, it becomes a commercial vechicle. If I was to get in a wreck even if I didnt letter my truck just had my trailer hooked up, she said Progressive would not cover my truck since i was using it for business. Right now i pay $1152.64 a year for insurance. If I went to a commercial policy it would be $2024.00 a year thats about double. I hate to spend the extra money but i got a $25,000 truck plus about $8,000 in equipment, plus I'd like to cover my butt just in case, I hit someone or another car. Any comment or suggestions anyone has or delt with this? What kinda auto insure do you guys have ? Now remeber I dont make alotta money cutting grass since its kinda part time, this is just kinda hit my wallet hard !!!
  2. Integritylawncare

    Integritylawncare LawnSite Member
    Messages: 55

    I live in Michigan also. I am now in the process of looking at liability insurance for my very small business. One commercial account requires it. But my agent is going to require me to upgrade my insurance on my truck also. So I'm watching the responses on your post.
  3. ncls

    ncls LawnSite Senior Member
    Messages: 442

    If you're with Progressive, as I am, you have to insure the trailer also. i found out the hard way.
  4. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Messages: 1,508

    some compaines have artisian insurance where it is commercial but only drove by the owner policy holder it is between regular and full commercial
  5. firstclass1

    firstclass1 LawnSite Member
    Messages: 11

    Well... What happened, I guess progressive didnt cover the trailer? Now what kinda coverage do you have on the trailer ?
  6. ncls

    ncls LawnSite Senior Member
    Messages: 442

    Because the trailer was not specifically covered, they denied coverage. My general liability insurance covered it, but only as un-scheduled equipment. Only got 500 dollars for it. Cost me 1400 to replace it. It costs me 120.00 for two trailers on Progressives policy.

    I hit the freeway on ramp at 50 mph. A few minutes later, the trailer was wildly swinging from side to side. I tried to pull off the right side berm, but the trailer spun me around and was going backwards for a good while, until I hit the grass on the median and flipped over. the truck and trailer were on their right side, facing backwards.

    I did 5500.00 damage to my truck, the trailer was totaled, and i did 2600 damage to a 60" Bad Boy mower. Thank god no one got in my way on my journey.

    I have since had a very nice conversation with my insurance agent, and have spent the extra money to be covered for every conceivable thing...
  7. TSG

    TSG LawnSite Senior Member
    Messages: 444

    State Farm sqitched my personal truck to comercial for 150.00/yr.
    Yes the trailer is covered too
    Total = 650.00 for a an 06 Tundra
    If that didn't work out, I was going to put it in with the Buisness Insurance.
    They wanted an extra 350.00/yr
  8. vadeere

    vadeere LawnSite Member
    Messages: 249

    Commercial truck insurance is cheaper in my opinion. Especially if you are young, I,m 20. Heres my monthly breakdown.
    2000 Dodge 2500 4x4 Cummins $120
    2001 Dodge 3500 4x4 Cummins Dump $32
    2007 Chevy 2500hd d/a cc 4x4 lt $55
  9. beano

    beano LawnSite Senior Member
    Messages: 425

    Spend the extra $$$. My stuff got stolen last year and my trailer wasnt covered because i was told it was an extension of my trucks auto policy and the auto company told me because it was used for business it wasnt covered. I only spend 1700$ a year for my 2000 silverado and my mowers, a utility trailer and a brand new 7 x 18 enclosed. Thats insurance on all my equipment and a 2 million general liability policy for all my jobs.
  10. eshreve1234

    eshreve1234 LawnSite Member
    Messages: 184

    My truck runs 900ish a year for 1M coverage under the biz policy. I feel for you MI guys, with the no fault coverage that is so expensive.

    Another thing to consider is where you live. When I moved from the city to the country my insurance went down by 30%. And I remember reading that Detroit has the highest car insurance rates in the nation.

    Also, are you incorporated? If not, are you prepared to lose your house over saving $1000 on insurance? With how happy people are to sue, you can blink and have a 50k judgment against you. And if the assets involved are your personal and under-insured, the court can force you to liquidate your personal assets to pay the settlement.

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