As a certified car shipper we know what is going on in the industry. Gas prices have been lower now than they have in quite some time. It would be a pleasant surprise to be able to pass that savings to our customers because they deserve a bit of a kickback. However, that isn’t possible because the insurance needed for an auto hauler company keeps going up. It has gone up so much that the savings a truck would have is all but gone and actually are spending more money because of their insurance policies.
One company in particular, BMW Auto Haulers, owned by Beth and Mike Wojtalik are outraged by the continuous increase in their policy. When they first got into the business back in 2012 the rate for their insurance for the year was only $7,800 for the year or $650 per month. That is pretty manageable for a company would has a 2 car hard-sided enclosed transporter with a $500,000 policy. They would be able to make that up with only one car being transported. Now their policy is at $15,000 for the year, which is $1,250 per month. That is literally double what they used to pay for and they have only been in business for 3 years.
BMW Auto Haulers has never made any claims on their insurance. They have not damaged a single vehicle. It is an hard side enclosed hauler, it is almost impossible to damage a vehicle. You have to really do something insane to damage a vehicle in an enclosed hauler. For these people the insurance is killing them.
Why has the insurance gone up so much in only three short years? I could understand if they were using the insurance and making claims, but they haven’t. The gas/diesel prices have been the lowest that they have witnessed since being in the industry lately and they cannot even pass along the savings because the insurance policy keeps going up.
As a person in the business, we need to take a stand and make a change. To be able to offer a lower rate to customers, more people would be transporting their vehicles. The business has literally priced out some of our customers. There is always a problems with crappy brokers shrinking the industry with a lack of proper business tactics, not transporters pricing customers out is also shrinking the business. A stand needs to be taken. Who is with me!!!???