New to Commercial Auto. I Need Advice !

[Matt37]

Hey guys,

I am new to the site and also fairly new to the industry... I have been doing commercial auto, specifically taxi and limo coverage for 6 mos.

I am in NJ and have been finding the fraud and moral boundaries going on with other brokers to be killing me.

When renewal time hits or I try to write new business, the drivers are constantly telling me they are getting this outrageous low quotes from other brokers.. of course when ask for something in writing to send back to underwriting to try and match, nothing exists.

These cab owners are getting whispered prices by these brokers who provide them with nothing in writing, and then come back to them with a whole different story weeks later.

I just cannot get myself to get down to the moral level of these others to price compete in this market.

These brokers, are lying on the apps to underwriting masking taxis as limos and to artificially lower rates.

I am thinking about bailing on the NJ taxi market.. I spend half the day arguing with my clients on this non sense others are whispering in their ears.

 

[Turz]

Niche market. Any chance you can expand your markets?

If not, why is it a problem if the other agent is lying and the client now has proof. They should be crawling back to you. While it's frowned upon for switching mid term, it's not illegal. If they are so unhappy w/ the current broker lying to them you should be cleaning up.

 

[BlockO]

I agree with Turz.
I don't think this is all that big of a problem. I would simply say to the client "if you are in an accident, do you really think a claims adjuster is not going to know the difference between a cab and a limo?..... they will deny your claim in a heartbeat!"

if that doesn't convince the client, then he/she is shady also. let them go.

if an agent is routinely selling taxi policies as limo policies, it won't take long for that to catch up with them.

 

[Matt37]

I agree about the niche market.. I am seriously thinking about expanding and diversifying.

The problem is the cab drivers do not care at all.. They simply want the legal limits and the lowest price possible. The cab market is not like most other markets, they do not see insurance for what it is they simply see it is a legal necessity... If they did not legally have to they would never buy coverage.

If I let every client that was shady go, I certainly would not be writing any taxis anymore..

Half of the claims we receive have either unlisted or underage drivers involved.... Add that on top of the shadiness now creeping over to the brokers and the taxi market is a pure mess.

 

[DerekAshland]

Every industry has its shady underbelly. You seem to have found a part of it with Taxis.

Try expanding your business elsewhere or go balls deep in this one if you have the stomach for it (which, from your post, seems like you don't).

 

[mmaedelins]

I'm in NJ too (BTW, why does your flag say Florida??) and I stay as far away from taxis as possible. None of the underwriters I deal with will come anywhere near commercial auto for a taxi! I can't imagine that they aren't putting in claims all the time with the amount of risk that is associated with constantly driving, driving around people who could care less about your vehicle, driving at night, handling and keeping cash around, and having to drive quickly from one place to another (I don't know a single taxi driver in NJ who doesn't drive aggressively!). Doesn't all of this kill your loss ratios??

 

[Matt37]

I'm in NJ too (BTW, why does your flag say Florida??) and I stay as far away from taxis as possible. None of the underwriters I deal with will come anywhere near commercial auto for a taxi! I can't imagine that they aren't putting in claims all the time with the amount of risk that is associated with constantly driving, driving around people who could care less about your vehicle, driving at night, handling and keeping cash around, and having to drive quickly from one place to another (I don't know a single taxi driver in NJ who doesn't drive aggressively!). Doesn't all of this kill your loss ratios??

Moved my office down to South FL as I am in the transition of doing business down here.

Currently licensed in NJ, PA, and FL..

Surprisingly some of our best lost ratios are in the worst areas because 90% of the claims are denied due to loss occurring in the act of a crime.

most of our claims in Camden and Philly are criminally involved somehow...

My issue now is your getting more and more players coming into the taxi market in that area with not a clue of what they are doing.. and the prices are artificially low becuase of them, and their sub par underwriting.. Of course they will all fold very quickly, when they see their year 1 loss runs for taxis!!!!

From someone who has been doing NJ and Philly cabs for 10 years.. it is time to GTFO!!

Early 2000s that market was booming.. getting about 4500-5000 a car, today that same car would be 3000-3500 if your lucky to get them there... all these guys writing them for that are going to get creamed.

 

[adeyera]

How 2 spend a less part of family budget on auto insurance
1.Drivers should have correct information about any possible discount when they are making policy on discounts. People should relies on correct resources, in this present age, people need more information on insurance, which have to come from there local insurer with best rates.
2.Relying on auto insurance quote have become the majors tools that are useful in applicable in this present age to the extend that, driver have been receiving vitals information through the internet or SMS services from the telephone provider, this medium have brought a lot of new things and have bridge the gap between the driver and insurance provider.