Why is insurance so expensive with new authority?
Because underwriters price what they can verify, and a carrier under a year old has no loss history to verify. You are rated on the class, the radius, the commodity and the driving records — and until you have your own record, the class average is your record.
Tell us the situation.
A licensed human replies the same business day — not an auto-responder, and not five producers calling at once. We shop it across our carriers and tell you if the policy you already have is the right one.
We use this to quote and service your insurance, and we do not sell it or pass it to lead networks. Privacy policy.
The detail
Carriers granted new operating authority are subject to a new entrant safety assurance programme, including a safety audit within the first year of operation.
What this means for you
- The first renewal is where the money is. Twelve clean months turns a class-average rate into a rate priced on you, and that is usually the largest single drop a carrier ever sees.
- Driver MVRs move the number more than anything else you control on day one. An underwriter who cannot price the company will price the drivers.
- Radius and commodity are underwriting facts, not descriptions. Saying "mostly local" when the filings show otherwise is the fastest way to lose a market you will need next year.
Related questions
- Can I get cover with new authority and no experience at all?
- Usually yes, but the market narrows sharply and the pricing reflects it. What helps is verifiable driving experience behind the authority, even where the company itself is new.
Need this handled?
We do the filings, and we place the accounts other brokers decline — lapsed authority, claims history, new ventures. Tell us the situation and a licensed human replies the same business day.