New Mobile Detailer - Insurance Woes

M

Magoo6541

New member
Hello Everyone.



I'm starting out on my own in the detailing world. A little background as this is my first post... I'm a fire fighter so I'll be doing this on my days off. One day, several months ago, I was detailing my vehicle at the station and I thought how great it would be to do this part time. For the last couple of months it's been in the back of my mine and last weekend, I said screw it and purchased most of what I'll need to do this. I still have a couple loose ends to tie up but for the most part, I'm ready.



I'm adamant about having a legitimate business with business licenses, insurance ect ect. I took today off from my current p/t job to get my licenses, bank account and a couple other things done... Doh! I forgot it was Veterans Day. So the only thing I could do was shop for company polo shirts and get some insurance. I'm having a problem finding anyone who will cover mobile detailing though. I've talked to several national and local insurance companies who will not insure a business without an actual store front... Which is funny because several years ago, my landscape company was easily insured. My buddies moving company and pressure washing business is insured and none of them have a store front. Maybe it's because it's detailing w/o a store front??



Anyway, can someone point me in the direction of a insurance company that insures mobile detailing?



Thanks!
 
Thanks!



Just outside of Hilton Head Is SC



I'm learning that. I've talked to 8 agents so far. Some say outright that they can't cover and a couple are getting back to me but are doubtful.
 
I actually operated for a year and half without insurance because I had the same issues. I manage to get one quote but it was outrageous ($3200). Now that I have been operating for 2 years and have gotten some high end cars on my client list I decided I needed to get insurance. I ended up finding a local company that would insure me for exactly what I needed for only $1,100. Which is still more than I really wanted to spend but was the best quote I could find for the coverage I wanted.



I'm also a fully mobile detailer with no store front. I ended up calling about 15 different places when it was all said and done. Apparently a lot of mobile detailers operate without insurance.
 
Nth Degree said:
Welcome! Where are you located?



PM sent.



Insurance for a start-up in this business can be tough. Good Luck.
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Could you send me information as well? I am also in the start up phase.
 
I have my insurance through Liberty. I have



Commercial liability

Commercial unowned auto

Garage keeper's liability



Costs me around $900 a year.



I also have a commercial auto policy. Costs around $1100 a year.
 
I've never knew that insuring a start up business was that difficult. So many other businesses can get insurance, what makes detailing so different? There's got to be a couple companies that cater to this niche?
 
I went with State Farm and had absolutely no trouble getting my policy. I'm also not sure what the issue would be with getting insured.



EDIT: Sorry, didn't read the OP's post closely enough. I had my shop when I started my policy. The agent did come by and take pics of the storefront. I'm not sure if I would have had a problem if I was mobile at the time.
 
I was audited back in the day and they wanted to see my payroll and sales records. I was under the impression these figures gave an idea of my exposure levels.
 
When I called for my insurance, they just wanted to know how much coverage I wanted, regardless of sales. I guess they thought if I needed more coverage I would buy more. :nixweiss
 
ExplicitDetails said:
I went with State Farm and had absolutely no trouble getting my policy. I'm also not sure what the issue would be with getting insured.



EDIT: Sorry, didn't read the OP's post closely enough. I had my shop when I started my policy. The agent did come by and take pics of the storefront. I'm not sure if I would have had a problem if I was mobile at the time.
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I was told by State Farm that they do not cover mobile detailing. I also found that there is a catch 22 when trying to insure a start up. Many companies won't insure you unless you have had coverage in the past. Makes sense.:frusty:
 
Nth Degree said:
I was told by State Farm that they do not cover mobile detailing. I also found that there is a catch 22 when trying to insure a start up. Many companies won't insure you unless you have had coverage in the past. Makes sense.:frusty:
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You probably talked to an agent that didn't know, or they don't cover it in your state. It's the only company I've gotten a quote from.



David Fermani said:
Don't they rate your premiums based on your sales / payroll?
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You know I thought was pretty stupid of them when I first heard that, but when you think about it, it makes sense. The more you do, the more risk you're taking on. The more money you charge, the more expensive the vehicles you must be working on. Your auto insurance is based on how much you drive per year.



I think it's funny how detailers, of all people, shop around for the cheapest price, lol. We're such hypocrites.



I got a few quotes from State Farm and adjusted how much I thought I'd make for the year. In the end, I've been operating without it in the beginning. Once I finish school next year and run out of GI Bill money, I'll be working my business full-time and looking for corporate/volume locations, which I'll need insurance for. I insure my car through GEICO and have renters through USAA, but when it comes to my business, I'd rather have a "personal" agent that has something to lose if they don't pay out some claim I may or may not get someday.



I also prefer to do business with people in person. Business is about who you know, not what you know. I'm not promoting State Farm by any means, I just went through them because of a recommendation. I received quotes from $90/month to $150/month depending on my income. I didn't like that at first, but it makes sense and I haven't (personally) heard anything bad about them (other than their rates, which has nothing to do with how good their business is).





Oh, and just remember to ask about deductibles and other things that may affect your rate. I told them I wanted under $100/month, and eventually got there without changing my overall coverage. They also have stuff listed you may not understand, so ask what you're covered for rather than just how much it's gonna cost you.
 
Quenga said:
I think it's funny how detailers, of all people, shop around for the cheapest price, lol. We're such hypocrites.
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I don't think it's hypocritical. At least when we search for the cheapest price we understand that we are not going to get the best quality. It's like a person who takes their car to a tunnel wash; they know it's not the best. The problem in our industry is that the majority of people don't understand the difference between quality and discount, therefore they often aren't willing to pay the higher prices. Until, that is, their car get's hacked. Then they understand and wish they hadn't skimped.



I also think the majority of detailers feel that their risk is pretty low, especially when mobile. What are the odds you are going to have a major claim that costs more than your premium for a few years? I'd be curious to hear what sort of claims anyone has had as a detailer.
 
Eh, I disagree. I'm not by any means trying to be negative, just stating a logical perspective. About the risk... who thinks they'll ever get into an accident? Have their car stolen? House broken into? Get hit by Katrina or Sandy? Just as many as those that know how bad automatic car washes are. 99% of my detail clients have no idea how bad they are for their cars. Not to mention you here about detailers correcting paint only to have to redo it again months down the road after they client continued to take their car through them. Another major factor is women, they don't give a crap about the outside. I do more interiors for women and exteriors for guys. My girlfriends cousin, who I recently did the interior for, says, "I don't care about the outside, I can take it through the car wash and it looks BOMB!" Uh...no, it's a swirled mess and the paint is faded, with no wax/protection.



Also, I think too many people focus on the "cheap" factor, rather than the "opportunity" factor. Take this into consideration when shopping for insurance:



How much do you think your local State Farm agent makes? What do you think their average client base looks like? Who do you think they're typical lead would be? All three questions lead to an answer surrounding "wealthy". Not everyone, but an agent that's been around for a long time is obviously successful.



Again, not promoting State Farm exclusively. I would go with a local agent over someone else in a heartbeat, even if it wasn't SF. Heck, I'm currently shopping around for dental insurance (can't afford health right now), juuuust so I can visit the Dentist and maybe persuade him to get a detail. And I say him, because the typical male Dentist drives a Porsche, lol. (Not a fact, just a stereotype).



There are more than 1 SF/local agents that probably offer the insurance you need for detailing. Visit all of them and go with the one that books a detail. First/second month's premium is on them. Maintenance plan = discounted insurance. Referral from them = premium paid for.



Just a thought.
 
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