Are you 100% honest with your aut insurance agent?

**Motivated** · 04-30-2009, 04:23 PM

I just called and asked my insurance agent how much it would be to insure an E250 for my carpet cleaning business.

He told me it would be very expensive for commercial purposes. I think he was trying to give me a hint. He quoted me over 3500 bucks a year. I have 0 tickets and good credit.

When I buy it should I just tell him I bought a van and leave it at that? Meaning, don't mention the business?

SW* · 04-30-2009, 04:56 PM

Something doesn't sound right here. I insure 3 vans, all the machines and equipment and a couple million in business liability. (three drivers-one with a DUI) and it is about $2,???.

**Motivated** · 04-30-2009, 05:03 PM

My insurance carrier is AAA Michigan. It sounds like I will be shopping around. Anyone esle in MI know a good agent? I could just tell him to insure the van but I am about to put a 20K TM in it. So I should do this the right way if possible.

**Scott W** · 04-30-2009, 05:20 PM

The agent may not be up on how to handle the truckmount. Insure the van on the regular commercial insurance policy. The value of the truckmount should be insured under an inland marine rider.

If you are not honest with the agent, you may find you have no coverage when you really need it.

But you do need to find an agent that knows something about our busines..

Scott Warrington

**mrclean1** · 04-30-2009, 08:07 PM

Scott is right, insure the van and equipment separate. I have my van insured commercial and it is more expensive, but not worth trying to get it by the agent. If you have an accident they will try to find an angle not to pay your claim

**Jason Whaley** · 05-01-2009, 01:20 PM

Had mine with GEICO for the last 5 years telling them it was a personal vehicle ( I use it to don't hate on me). I recently had an accident with my trailer hitting a parked car and GEICO sent me paperwork asking if it was for business and I told them yes and filled it out. I have not seen an increase in premium tho yet.

**Classicboss** · 05-01-2009, 02:18 PM

I use a risk management Ins. company for business. I am 100% honest with them on all business vehicles as if there is an accident or something happens to my equipment in an accident or even customers property that you may be taking to your shop to clean gets stolen or damaged on your truck its taken care of. I would rather pay for Insurance than pay for new equipment or property damage if something should happen. That's a funny question almost like asking if anyone here cheats on their taxes.

Be Safe now not sorry later!

**wandwizard** · 05-01-2009, 03:33 PM

Originally Posted by Motivated

I just called and asked my insurance agent how much it would be to insure an E250 for my carpet cleaning business.

He told me it would be very expensive for commercial purposes. I think he was trying to give me a hint. He quoted me over 3500 bucks a year. I have 0 tickets and good credit.

When I buy it should I just tell him I bought a van and leave it at that? Meaning, don't mention the business?

You should not hide the fact that your vehicle is for commercial purposes, but I'm certain you can get a better deal than that. When I got my new GM Savannah a couple years ago State Farm was going to charge me 120. a month for insurance as a commercial vehicle. I began looking for better rates because they were also charging me almost a thousand a year for home owners insurance on a house only worth about 103,000. If you want to know who I switched to just PM me and I'll be more than happy to tell you. By the way, the vehicle insurance at most insurance companies does not cover the equipment inside. In most cases thats a separate insurance or a rider. But, even if they were including that, it is still insanely high and I would check other insurance companies out. Get at least 3 quotes from other places is my advise. I suspect that even though you have a good driving record and good credit history that your age may be a factor, but I'm still certain you can do much better if you'll look around.

**aspenedelen** · 05-24-2009, 01:35 AM

I would advise what everyone else has stated above as to commerical insurance. Insure truck for business only. Of course you have a seperate vehicle to drive daily for personal reasons! Secondly, get the inland marine insurance for the total new amount of equipment. You do not want to be stuck with a fire or someone stealing equipment and only geting the depreciated price for it. I pay something like 2,800 per year for this type of insurance and I am insuring $200,00 face value of equipment, garage, blowers, trailers, dehus, etc. Don't be cheap with insurance because one day it will bite you in the butt. It is one or two weeks of work so put that money away and pay for good quality commerical insurance and INLAND MARINE insurance.

**LisaWagner** · 05-24-2009, 02:45 AM

You need to look into insurance to cover the loss of income as a result of any accident as well ... because if your van is out of operation - then you are out of cash creation.

Lisa

**Rob Allen** · 02-28-2010, 08:20 PM

I am and have always been over insured.

**spotman123** · 02-28-2010, 10:44 PM

I too was overinsured, I have van insurance, machine insurance and bus liab ins all seperate, I get a yearly audit from the company so I have to be on the up+up. I had my personal car thru the same agent and just changed to another and saved about $480. May I should change the others too??????????????? shop around spotman

**groutguy** · 03-01-2010, 09:38 AM

Important Insurance Info:

After working for Geico for many years, before getting into cleaning, I have learned alot. Here are some helpful tips.
1. Lying to your ins co about vehicles, use, modifications, driving habits, location ect.. is a crime
2. All insurace co's report activity, (accidents, tickets, fraud Ect..) to a third party company, and this information is available for all the ins co's to look at... and they do look
3. If it is proved that you lied on your application or failed to disclose changes during your policy, a claim could be denied, and some claims could be high dollar, if there are injuries
4. All of the people that work for the ins co are trained to look for fraud, even the tow truck driver that may be dispatched for emergency road service can report back modifications or misuse.
5. although an insurance company can't cancel your policy mid term, if they got wind that you have misled or lied they will non-renew your policy for sure, and you will find it very dificult to get insurace anywhere. Usaully a service counsler, billing clerk, claims counsler or any other rep will ask you a simple question about your vehicle or use and if it does not jive they will send a note to the underwriters and boom! out goes the non-renwal. Happens all day long!
6. When you buy a policy they know exactly what kind of vehicle it is from the vin. 250, 350, make, model, year... everything except things you've added after factory such as snowplows, ladder racks, cc machine's, exhuast, nirtis oxcide, lift kits and the list goes on and on.... these are your responsibilty to let them know.
7. Fraud is much higher in certain areas like parts of NY, NJ, Pa., Brooklyn and Philly are perfect examples, policies in these areas are looked at under a microscope.

Bottom Line, Your Insurance company knows all the tricks, and how to catch them. I write this not to try and scare you, but to help you avoid huge insurance headaches in the future. They ask all these questions when you get a policy for a reason, they need to get the right premium for the risk in order to be profitable, just like us all!