![]() ![]() Sales tax may be applied where applicable. ![]() If you add or remove services, your service fees will be adjusted accordingly. Your account will automatically be charged on a monthly basis until you cancel. QuickBooks Online Discount Offer Terms: Discount applied to the monthly price for QuickBooks Online (“QBO”) is for the first 3 months of service, starting from the date of enrollment, followed by the then-current list price. When Overdrive called Progressive's customer service line to inquire about usage-based insurance, the agent on the phone didn't mention the company's Smart Haul program, which offers savings on premiums in exchange for ELD data from carriers about usage.Money movement services are provided by Intuit Payments Inc., licensed as a Money Transmitter by the New York State Department of Financial Services. For more information about Intuit Payments' money transmission licenses, please visit. But, he said, often underwriters and agents you talk to on the phone won't even know about the policies. Next month would be 10% of the miles and it would be that low."Īlso, Moseler said Great West includes physical damage into the mileage rate in addition to liability, so that "every mile you run, you know just what it's going to cost you."īecause Great West Casualty only offers these plans to businesses that run more than 1 million miles annually, Moseler also recommended Northland, Canal, National, Interstate and National Casualty for their usage-based programs. When COVID happened, I literally had companies reporting 0 miles for a month and the payment was 0. They’re the only ones that don’t have minimums. "If you compare everyone else’s, it works so significantly different, it would surprise most people. Great West Casualty is "famous for having the best usage-based policy," he said. Under a usage-based plan, however, the "borrowed" truck is "typically going to be covered," he said, given such plans are structured around exposure from use, not particular assets. He offered a trucking company that might operate a truck that's not listed on its policy under a traditional plan - and thus wouldn't be covered. Most might "prefer a usage policy, but insurance companies don’t like to offer them, given claims that might arise outside an expected course of business. "Any trucking company that can get one like that wants it," he said. Potential advantages of usage-based insurance Moseler believed this type of coverage to be a no-brainer for trucking companies, and not just because it's cheaper. The carrier reports every month simply how many miles were run, and at the end of the year, the insurer asks for four quarters of IFTA reports to compare what was reported to them and what they reported to the state. Insurance companies "usually audit the carrier's IFTA" reports, he said. The other model for usage-based insurance described by Moseler is a "reporting policy," wherein companies simply report their miles and pay based on their usage. Naturally, risk is incurred "when the truck is driving and generating miles." If a truck is sitting under such a plan "you're not going to pay insurance on it." or a truck goes down for maintenance" and ends up sitting , not generating revenue, he said. "To a trucking company, it makes more sense to them" if they run the risk of losing "a driver. ![]() They have what they call minimum premiums, usually 80% or 90%, so if you estimated 1.2 million miles and you actually ran 700,000," the company might be billed 900,000 for the full year. ![]() In a composite rate they take the rate of $120,000 and say you’re gonna do 1.2 million miles, so we’ll divide it by the number of miles and say you pay 10 cents a mile and run 100,000 miles a month, so we’re going to bill you and at the end of the policy we audit it and refund you to a degree. "Let’s say a company is going to pay $120,000 in premiums. Here's how he broke down the first of those: "A standard composite rate and a reporting policy." ""Usage-based is referred to in the industry as 'composite rate' and there’s two different types," he said. Moseler said that most insurers require a fleet to have at least 10 trucks for usage-based plans, but some newer plans on the market target smaller operations. Jeff Moseler, an account executive at Navigator Truck Insurance Agency, said that usage-based insurance has been around for a while, but few people even know how to take advantage of the potential savings. ![]()
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