TRUCK INSURANCE CASE STUDY
Owner-Driver Prime Mover, Renewal Remarketed at Roughly Half the Premium
A single-truck operator hauling containers in North Queensland came to us uninsured. We placed the prime mover with one insurer in year one, then took the renewal back to market and moved it for a premium around half the first year's, on that year's facts.
THE SITUATION
A North Queensland owner-driver came to Tank Insurance with a single prime mover, an older European cab-over with low kilometres, towing trailers for a regional transport operator. The work was general cargo in shipping containers, and the trailer belonged to a third party, so cover for a trailer in the operator's control mattered as much as cover for the truck.
The truck had been uninsured for several years. That gap, plus a one-person business with modest turnover, narrowed the field before a single quote was requested.
OUR APPROACH
In year one we approached several commercial motor markets with the truck, the work and the trailer arrangement described accurately.
- Several insurers declined on vehicle type or on the non-owned trailer, so the risk was placed with a specialist heavy motor insurer at a premium of around $9,300.
- At renewal we did not roll the policy over. After twelve months of insured, claim-free operation the renewal submission set out the current operation: containers with a small proportion of goods the insurers treated as dangerous goods (dry ice), and a trailer-in-control sum insured of $10,000.
- Three insurers quoted the renewal. The incumbent's renewal terms were referred and accepted with a loading for the dangerous goods component. A second heavy motor insurer referred the risk, accepted it, and came back at roughly half the incumbent's price. A third sat between the two.
The renewal was moved to the lower-priced insurer, with the trailer-in-control cover and the dangerous goods disclosure carried across.
THE CHALLENGES
The first-year placement was about finding any insurer that would accept a truck with a multi-year insurance gap and a trailer the client didn't own. Price was secondary to getting the truck insured at all.
The renewal was a different problem. The dangerous goods component, small as it was, triggered underwriter referrals, and the quotes only compared fairly once each was on the same trailer-in-control basis with the dry ice disclosed.
THE OUTCOME
The prime mover was renewed with a specialist heavy motor insurer at a premium of approximately $4,400, down from around $9,300 the year before.
Final Solution: Commercial motor on the prime mover renewed at around $4,400 a year, with trailer-in-control cover of $10,000 and the dangerous goods exposure disclosed and accepted.
Most of the saving came from marketing the renewal rather than rolling it over. The incumbent's own renewal offer was lower than year one, reflecting the claim-free year, but a second insurer priced the same disclosed risk at roughly half.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our prime mover insurance guide and the truck insurance hub.
OWNER-DRIVER QUESTIONS
What this placement answers for other owner-drivers
How much does insurance cost for a prime mover and trailer?
Can I insure a prime mover if I have not had insurance for several years?
Does my truck insurance cover a trailer I do not own?
Should an owner-driver remarket the renewal every year?
Does carrying a small amount of dangerous goods change prime mover insurance?
TRUCK INSURANCE HUB
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
More Case Studies
All case studiesGeotechnical Consultancy Fleet, Remarketed with Hire Vehicle Added at No Cost
How we remarketed a geotechnical engineering consultancy's vehicle fleet, with two fleet insurers declining on target premium, and placed it at around $24,400 a year with hire vehicle after accident added at no extra cost.
Read case study Truck & TransportTwo Refrigerated Vehicles for a Multi-Site Hospitality Group, Insured Days Before Settlement After Three Declines
How we insured two refrigerated vehicles for a multi-site hospitality group days before settlement at around $10,600 a year on a market value basis, after three insurers declined on refrigerated goods and an agreed value alternative came in at around $18,500.
Read case study Mining ContractorsMine-Maintenance Boilermaker, $20M Liability and Tools Package
Sole-director boilermaker building a mine-maintenance business placed at $20M public liability with tools cover at around $1,700 a year after seven insurers declined the occupation, with commercial motor arranged alongside.
Read case studyRenewal Coming Up on Your Truck?
Tell us the truck, the work, the radius and what you're paying now. We take heavy motor renewals to insurers that write owner-drivers, so you know where your terms really sit before you roll over.