Who Pays Motor Carriers Insurance Down Payment When Leased On

Hello All,

I have a situation that I could use some guidance on. A little back history, I am leased on to a Motor Carrier and have been for a few months. When originally signing on I was not required to pay a down payment for insurance, only billed weekly for my portion of the premium. Fast forward to now, the motor carrier is switching insurance providers, I have been asked to pay a portion of the down-payment in addition to my weekly deductions, is this normal?

That will be an individual company issue according to how the contract is written. Each company is going to be different, yet similar. Having a transportation attorney look at any contractual agreements is a must IMO.

Hi Laura,

Not sure what the case is with your specific carrier, but when a carrier gets insurance they have to pay like 20% (don't quote me on the exact percentage) upfront. In my case, my annual insurance premium is $8272, which i have to pay $2558 of that in the first month. In exchange, i only have 9 months of payments. You can think of it as paying the last 3 months up front so you don't have to pay for the last 3 months. This obviously is so they can make more money even if you quit half way through the year. If that makes sense.

I've never changed companies half way through the year because it gets complicated with prorate and a new down payment so you may have to just ask your carrier for the numbers.

Hope this helps.