More insurance questions...

[pengyou]

Is it easier to get insurance for a skoolie (not just liability but full coverage) if the driver has a CDL (I think some states have a lower level CDL)?

If an engineer approves the new design of a skoolie will that make it easier to get full coverage? I don't want to be throwing money out the window but if it will make insurance possible, it might be worthwhile.

[Rusty]

The Holy Grail? - School Bus Conversion Resources

[EastCoastCB]

Originally Posted by pengyou

Is it easier to get insurance for a skoolie (not just liability but full coverage) if the driver has a CDL (I think some states have a lower level CDL)?

If an engineer approves the new design of a skoolie will that make it easier to get full coverage? I don't want to be throwing money out the window but if it will make insurance possible, it might be worthwhile.

the insurance folks don't care what licence you have, at least here.

[Twigg]

Originally Posted by EastCoastCB

the insurance folks don't care what licence you have, at least here.

... or here.

There isn't a "lower level" CDL.

There is a CDL and a state driver license. That state license might come with different classes and weight restrictions. Some states do, some don't.

[mikej42]

Just to relate my personal experience...

I got my insurance today at AAA, I didn't have to provide any pictures, specs or inspection notes. He just asked me some questions and found me the best rate he could.

Right now I have basic liability and uninsured motorist coverage at a rate of $130 a year. I'm going to bump up to full coverage soon, after he comes out and takes some pictures (just to prove that it is being converted), which will cost me $330 a year.

I'm in California, btw.

I also registered the bus today at the DMV and the total cost was $535. The weird thing is that they didn't even require proof of insurance.

It was a much less painful experience than I was expecting, to be honest.

[Robin97396]

That's great. I hope it works. Still hasn't passed the three week test.

[PNWorBUST72]

3 week test?

What types of coverage are you guys getting?

I went whole hog with progressive on a charter bus but its like 1k a year now...

[o1marc]

Originally Posted by PNWorBUST72

3 week test?

What types of coverage are you guys getting?

I went whole hog with progressive on a charter bus but its like 1k a year now...

Seems a number of members here were issued insurance policies only to have them cancelled a few later after the underwriters reviewed them.

[Robin97396]

Exactamundo! If you don't get dropped within three weeks, your good.

I was dropped from three different policies before I finally calmed down and went to the independent insurance agent ending up on Progressive's commercial policy for private use.

It's not so much of a problem just being cancelled. What happens is the companies that drop the policy within a few weeks keep about 60% of the annual policy cost for the several weeks before they drop you. It's a scam. They readily give policies based on VIN#s and accept an annual payment, then keep most of the money and drop the policy within weeks.

[PNWorBUST72]

I was going to pay monthly with progressive.

I tried Good Sam and geico, no dice for a 1978 MCI-8. State Farm said yes but with the very basics at $800 a year.

Progressive policy is 500k's all around.

[o1marc]

Originally Posted by PNWorBUST72

I was going to pay monthly with progressive.

I tried Good Sam and geico, no dice for a 1978 MCI-8. State Farm said yes but with the very basics at $800 a year.

Progressive policy is 500k's all around.

Unfortunately when you pay monthly they don't break down the payments in equal amounts on a 6 or 12 month policy. They get a big chunk up front and then spread the rest over the time frame. So if it gets cancelled they still got more than they should from you.

[PNWorBUST72]

Sure, it was like 175 up front and 99 a month or something...

[PNW_Steve]

Regarding the folks who have lost $ when their policy was cancelled:

If you are in Washington state, call the insurance commissioner! That practice is blatantly illegal in Washington state.

I can't speak to other states but that is the way it is in WA.

[o1marc]

Originally Posted by PNW_Steve

Regarding the folks who have lost $ when their policy was cancelled:

If you are in Washington state, call the insurance commissioner! That practice is blatantly illegal in Washington state.

I can't speak to other states but that is the way it is in WA.

I'm sure keeping money for time not used is illegal in most places. I would not let it ride if they did it to me. Would I have been insured had I had an accident during the initial period? If not, I would all my money back.

[Robin97396]

My interpretation of the insurance laws is that they have to prorate the policy down to the day they stopped coverage. So if I paid for a year and they cancelled after 14 days, they should by law retain 14/356ths of the total annual payment.

They don't do that. So far every one has kept about 5 or 6 months worth of premiums. The thing is they turn right around and give out policies to other bus owners that they subsequently cancel the policy on. Doesn't this show forthought on the part of the insurance comanies? If it was a policy not to insure buses, they would simply not give out policies to bus owners. Yet they do give out policies and they keep about six months worth of premiums after cancelling the policy within several weeks. It's profitable for them so they continue giving out policies and cancelling them. Nothing but a ripoff by the insurance companies.

[Twigg]

Originally Posted by Robin97396

My interpretation of the insurance laws is that they have to prorate the policy down to the day they stopped coverage. So if I paid for a year and they cancelled after 14 days, they should by law retain 14/356ths of the total annual payment.

They don't do that. So far every one has kept about 5 or 6 months worth of premiums. The thing is they turn right around and give out policies to other bus owners that they subsequently cancel the policy on. Doesn't this show forthought on the part of the insurance comanies? If it was a policy not to insure buses, they would simply not give out policies to bus owners. Yet they do give out policies and they keep about six months worth of premiums after cancelling the policy within several weeks. It's profitable for them so they continue giving out policies and cancelling them. Nothing but a ripoff by the insurance companies.

If they cancel they should return all of the un-used premium.

If you cancel then I think they recalculate to their short-term rate and remit the balance.

[Robin97396]

Not in my experience. I know what the law says but it appears they don't care what the rules say.

In reality it takes money and effort to take them to court to prove I'm right and regain a couple hundred dollars. The litigation would stretch out for several years due to foot dragging by the large company. All the time they are hoping that you'll A. Run outof money to fight with or B. you become less angry and go away. Something like 97% of people choose not to fight and the rest get taken care of one way or the other throough the corporate attorneys. Insurance companies don't pay penalties even on proven bad decisions on claims. At worst they have to pay us the amount they would have had to pay in the first place, which amounts to a couple hudred dollars. Not worth it to us, but they're still giving out policies to newbs and cancel them several weeks later.

Dishonesty is rampant, and I realize that's a two way street.

[PNW_Steve]

Originally Posted by Robin97396

My interpretation of the insurance laws is that they have to prorate the policy down to the day they stopped coverage. So if I paid for a year and they cancelled after 14 days, they should by law retain 14/356ths of the total annual payment.

They don't do that. So far every one has kept about 5 or 6 months worth of premiums. The thing is they turn right around and give out policies to other bus owners that they subsequently cancel the policy on. Doesn't this show forthought on the part of the insurance comanies? If it was a policy not to insure buses, they would simply not give out policies to bus owners. Yet they do give out policies and they keep about six months worth of premiums after cancelling the policy within several weeks. It's profitable for them so they continue giving out policies and cancelling them. Nothing but a ripoff by the insurance companies.

That is precisely why I made the post.

I cannot speak to other states but I will be surprised if they are not similar to WA. The way you described it is the way it works in WA and companies that might try to cheat you face fairly severe penalties and even criminal charges.

If an insurance carrier has not refunded what you think is the correct amount call your states insurance commissioner. It is their job to police the insurance companies.

[Robin97396]

Yes, I'm quite sure I was cheated by the insurance companies but I don't believe it is worth persuing. They get in trouble and the government fines them and that's the end. No reparation to years of robbing customers that bought a policy by canceling and keeping the majority of the contract price. I just don't believe that it's an accident that they keep handing out policies. They give out the policy with the correct VIN on it, so why are they able to renig on the contract? It doesn't take them two weeks to figure out that it's a bus obviously because of the VIN.

They do the corporate thing and add this fee and the other fee when calculating how much money to give back to a previous customer. I'm sure it's all quite legal. My previous experience with the insurance commissioner was less than adequate. If I complaned, in two years from now when my issue is resolved do you think it would be in my favor? The law of averages powered by contract lawyer doubletalk means I don't get satisfaction. Thus, it's just not worth putting energy into this issue. Yeah, no faith in the system here.

This is why I'm so insistant on people contacting independent insurance agents instead of contacting insurance companies directly. The good news is more insurance companies tend to be turning bus owners down flat, if you can call that good news. At least they're not taking their money for two weeks.

[WanderWoman]

Originally Posted by Robin97396

That's great. I hope it works. Still hasn't passed the three week test.

I’ve had mine with Allstate for 7 weeks. I think I’ve passed!!! Woo hoo!


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