# Mass Commercial Insurance Unbelievably High



## Duane Mitchell (May 13, 2015)

I just got a quote from my insurance agent for commercial insurance that meets the requirements to operate a car service in addition to Uber, etc. The cost to me is $7500 for liability only or $12,000 with collision and comprehensive. According to him anyone who wants insurance for taxis, limos, or car service has to go into the Massachusetts high risk pool and there is no price competition for this business.

Can someone from Massachusetts comment on this?

Thanks.

Duane Mitchell


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## TwoFiddyMile (Mar 13, 2015)

Go see Lenny at Lighthouse Insurance in Perkins Sq South Boston.

Lighthouse does nothing but taxis limos liveries schoolbusses.

That quote is rediculousness. 
Should be a mean average of $2500 without Massport requirements and $5000 witb Massport requirements.

Hint- dont use a car registered in Boston, ridiculously high rates for commercial vehicle insurance.

I had my taxis registered through business mailbox in Waltham for almost 10 years.


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## Another Uber Driver (May 27, 2015)

TwoFiddyMile said:


> I had my taxis registered through business mailbox in Waltham for almost 10 years.


The Commonwealth allows registration to a Post Office Box?

This is something to consider. I registered my DeSoto to my parents' address in Ipswich, but, they are getting on in years and _*ain't been doing the best, *_lately. If we move them to the house next to my sister's in Delaware, they will sell the house in Ipswich. My brother is still in Pepperell, but his wife and I do not get along.

I like Essex County addresses (and telephone numbers--my wireless is there). I will have to see if someone there offers business mailboxes. I am sure that there is someone in Salem, Peabody, Newburyport or Haverhill that does.


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## Duane Mitchell (May 13, 2015)

TwoFiddyMile said:


> Go see Lenny at Lighthouse Insurance in Perkins Sq South Boston.


Thank you. I will definitely contact him. I spent a lot of time as a taxi driver in Perkins Sq. There was a good bunch of guys who were regulars there back in the 80's.


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## TwoFiddyMile (Mar 13, 2015)

Another Uber Driver said:


> The Commonwealth allows registration to a Post Office Box?
> 
> This is something to consider. I registered my DeSoto to my parents' address in Ipswich, but, they are getting on in years and _*ain't been doing the best, *_lately. If we move them to the house next to my sister's in Delaware, they will sell the house in Ipswich. My brother is still in Pepperell, but his wife and I do not get along.
> 
> I like Essex County addresses (and telephone numbers--my wireless is there). I will have to see if someone there offers business mailboxes. I am sure that there is someone in Salem, Peabody, Newburyport or Haverhill that does.


Dunno what Mass allows. Im a ballsy individual tho.
When i got my first taxi in Waltham, i lived on the north shore.
I needed a manipulation. 
UPS Store calls them PMBs, Personal Mail Boxes.
So i was at XXXX Main st PMB 199 for almost a decade.
Newton was harder. They wouldnt accept out of city addresses, or boxes.
I went through Regus at 275 Grove st.

I don't recommend Regus.
In their eyes, i still owe them 2 to 3 grand for that auto renew contract.
What a bill of goods.


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## Duane Mitchell (May 13, 2015)

Just got off the phone with Lenny at Lighthouse Insurance. For non-luxury vehicles and without a history of professional driving you do have to go into the high risk pool. For me liability alone would be $8400 and for collision with comprehensive it would be $11,000 - $14,000.

For a luxury vehicle those amounts are reduced by more than half. $5500 - $6500 for the full coverage.

Since I have a good driving record it would be to the low end.


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## TwoFiddyMile (Mar 13, 2015)

Duane Mitchell said:


> Just got off the phone with Lenny at Lighthouse Insurance. For non-luxury vehicles and without a history of professional driving you do have to go into the high risk pool. For me liability alone would be $8400 and for collision with comprehensive it would be $11,000 - $14,000.
> 
> For a luxury vehicle those amounts are reduced by more than half. $5500 - $6500 for the full coverage.
> 
> Since I have a good driving record it would be to the low end.


Extremely interesting numbers.
Means the insurance industry in Ma is more comfortable insuring a livery than a private car doing commercial work.


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## Adieu (Feb 21, 2016)

Duane Mitchell said:


> Just got off the phone with Lenny at Lighthouse Insurance. For non-luxury vehicles and without a history of professional driving you do have to go into the high risk pool. For me liability alone would be $8400 and for collision with comprehensive it would be $11,000 - $14,000.
> 
> For a luxury vehicle those amounts are reduced by more than half. $5500 - $6500 for the full coverage.
> 
> Since I have a good driving record it would be to the low end.


I know I'm nowhere near Boston, but the mechanics of this fascinate me... Anyone know if luxury vehicle class is just your usual Lincolns and Cadillacs, or stuff like BMW Acura etc too? If so, wonder why...

Maybe they're targeted at delivery market for compact passenger vehicle rates? I can see how a chauffeur in a luxury sedan wouldn't be expected to do anywhere bear as much driving or take so many risks as a pizza or Chinese food delivery guy... Or is it for injury claims of occupants that it's so high, with them figuring larger heavier vehicles with lots of airbags and higher prices to hire are less likely to produce huge spurious injury damage suits???


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## observer (Dec 11, 2014)

Adieu said:


> I know I'm nowhere near Boston, but the mechanics of this fascinate me... Anyone know if luxury vehicle class is just your usual Lincolns and Cadillacs, or stuff like BMW Acura etc too? If so, wonder why...
> 
> Maybe they're targeted at delivery market for compact passenger vehicle rates? I can see how a chauffeur in a luxury sedan wouldn't be expected to do anywhere bear as much driving or take so many risks as a pizza or Chinese food delivery guy... Or is it for injury claims of occupants that it's so high, with them figuring larger heavier vehicles with lots of airbags and higher prices to hire are less likely to produce huge spurious injury damage suits???


Commercial insurance is high because the coverage limits are high.


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## everythingsuber (Sep 29, 2015)

TwoFiddyMile said:


> Extremely interesting numbers.
> Means the insurance industry in Ma is more comfortable insuring a livery than a private car doing commercial work.


Typical driver profile would be someone under 25 and an inexperienced driver in the group of 5 cabs we run we expect a new driver about that age to have an accident early and we hope it doesn't cost too much. Insurance companies are probably looking at half the inexperienced drivers making a claim within a couple of years.


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## observer (Dec 11, 2014)

Lawyers know that coverage minimums on livery and any commercial vehicle, for that matter, are set extremely high by law. In CA minimum commercial insurance is 1 million dollars. Personal minimum insurance is 5K/15K/30K.


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## observer (Dec 11, 2014)

5 thousand for property damage, 15 thousand for injury death to one person. 30 thousand for two or more people.

Lawyers know accidents with commercially insured vehicles are good easy paydays for them.


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## Adieu (Feb 21, 2016)

Not asking that...ONLY why a Cadillac insures for half to one third of the rate for a civic


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## Duane Mitchell (May 13, 2015)

It was strongly suggested to me by the agent I spoke with that before I made a purchase of a "luxury vehicle" that I speak with him to make sure the vehicle does qualify as luxury class. I assume that the insurance company figures you are doing a different kind of driving in a luxury vehicle than just banging around the city. I'm sure that they have plenty of data to show that someone who owns a luxury vehicle will cost them less in claims.


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## Another Uber Driver (May 27, 2015)

Duane Mitchell said:


> I'm sure that they have plenty of data to show that someone who owns a luxury vehicle will cost them less in claims.


.......for liability, yes; for collision, not necessarily. Repairs on higher end vehicles tend to cost more. There is a firm here, Bankers' Independent, that writes collision policies for taxicabs. They will not write for certain makes of vehicles, though, such as Lincolns or Cadillacs.


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## TwoFiddyMile (Mar 13, 2015)

I had 3 different vehicles with livery plates in Ma.
They send out this chick named Lisa to do the "insurance livery inspection".
Shes a mobile actuary.
"Do you go to logan? What percentage of your trips originate at Logan?".

Here are the answers which make her report keep your premiums low.
"No i dont hustle hotels. The livery is parked in assigned deeded off street parking until it is dispatched. No we dont go to Logan often, we arent that successful. We rarely leave Waltham. Mostly just runs with elderly to medical appts. Zero trips from Logan, we arent that successful. ..".
3 years ago i had a PT CRUISER livery with non Massport insurance at $2300.

Yes im an unsung hero...


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