It all comes down to one thing: Data! ELD Data, Video Data, Telematics Data, Mileage Data. Insurance companies LOVE data. Whether it is your first time looking for trucking insurance or you are an experienced fleet owner or owner-operator that has retained trucking policies over years, insurance companies will need DATA to determine specifics and cost of your policy. Data about where you live, data on the cargo you haul, and even the types of vehicles you drive or the employees you hire. Technology in the trucking industry is rapidly evolving and so are the types of data required in order to underwrite your trucking insurance policy. Owner-operators, fleet owners, and small trucking companies can save money on their trucking insurance if they are aware of the factors that affect commercial insurance premiums. Let’s outline a number of programs that are currently in use.
Progressive Smart Haul ELD Discount
Progressive states that long-haul truckers can save an average of $1,384 on their insurance if they volunteer for their Smart haul program. Volunteering for the program allows Progressive insurance to access the trucking company ELDs by submitting requests to the ELD provider, only when authorized by the trucking company. Under the smart haul program, Progressive guarantees a minimum of 5% saved on any quoted premium just by authorizing access to your data. Progressive will then analyze the data and ultimately, based on the vehicle, driving history, the area, and other data available with the ELD provider, your final ELD Discount Savings will be calculated. The discount could reach up to a maximum of 18%. Indeed, you could save an additional 18% after your quote has been received! Essentially, if your trucking company performs higher amongst the available data compared to other trucking companies you will get a larger discount than others in the business.
It’s important to note that by signing up, you will receive savings based on the data collected for the year in review, and your savings may decrease at renewal.
If you are a new trucking company with no ELD data, you will be guaranteed a 3% discount. You are required to have an ELD and DOT number in order to participate in this program.
Progressive’s Smart Haul ELD Discount can be truly appealing especially considering that truck drivers can receive an additional 10% discount for signing up with little to no strings attached. The program is available for all trucking companies regardless of driver experience, vehicle age, years in business, or credit history.
Progressive Insurance is the largest truck insurer by premium volume in the United States and retains an AM Best Rating of “A” Excellent.
Specialty Compliance-based Insurance Programs
There are very few compliance-based trucking insurance programs that are widely available in all states, but Tobico Trucking Insurance participates with these programs. A compliance-based trucking insurance program will underwrite small and large trucking companies who experience extreme difficulty getting insurance in the standard markets. Therefore, compliance-based trucking insurance programs can offer affordable trucking insurance using tangible data from the trucking company that allows them to mitigate risks. Tobico Trucking Insurance offers an exclusive trucking program that uses a third-party company called ClearConnect Solutions to perform the compliance. ClearConnect Solutions’ ClearTrac software program helps insurance providers collect data on their insureds and analyses the validity of that data.
The program requires drivers and owners to undergo online training on a computer or even a smartphone. It collects trucking company vehicle registration data, driver violation records, drivers’ and owners’ criminal records, driver safety training results, vehicle maintenance inspection records. It also assigns telematics devices to each vehicle listed on the policy. The program also offers an additional discount at renewal based on the quality of the driving data.
The program requirements are minimal: as long as owners and drivers retain an interstate authority and are willing to undergo online training, use a telematics device, provide data, including annual vehicle inspection records to prove that vehicles are being maintained, policy savings can be as little as 5% to as much as 25%. Most importantly, there are no years in business requirements, credit requirements, vehicle age requirements, or driver requirements (except for a minimum of two years with a valid CDL). Furthermore, truckers experiencing difficulty in maintaining DOT safety experience can still be considered for the program.
The AM Best A-rated coverage is available for complete commercial trucking packages including Commercial Auto Liability, Physical Damage, Motor Truck Cargo, Trailer Interchange, and even Occupational Accident coverage if needed.
Currently, there are several dashcam -based programs being offered and there are several reasons why they are becoming ever-so-popular. The main reason is that dashcams are the only valid and time-stamped data that can provide both audio and visual evidence of the exact sequence of events that occurred in the event of an accident.
Since the truck drivers have such high commercial auto liability limits for bodily injury and property damage, those who are involved in trucking accidents often set the blame on the drivers of heavy vehicles and file lawsuits. It has been well-established, for example in the DigitalTrends article written by Jeff Zurschmeide written in 2016 and other sources that, Dashcams can legally protect trucking companies from malicious and unfair claims and in many cases reduce the number of claims. Insurance companies favor this type of solution for trucking policyholders because it saves time and money. Dashcams promote self-awareness and safe driving patterns among both owner-operators and fleet owners since they can be used as a tool to coach their employee-drivers.
One example where dashcam programs are being administered is regional trucking insurance carrier- Eastern Atlantic Insurance Company, which offers to not only pay for the dashcams but revise insurance premiums by an additional 15% at every renewal based on the data. If you are a trucking company without a dashcam and looking for commercial trucking insurance call Tobico Trucking Insurance to find out about several Dashcam programs that we offer to for significant savings on your first and consecutive policies.
Mileage-based Insurance Programs
A long-standing leader in trucking insurance, Canal Insurance Company in Greenville, SC has partnered with Samsara Networks, Inc. based in San Francisco, CA to bring a major leap in mileage-based truck insurance. This is something long-asked-for by small trucking companies who run dedicated freight as well as those who have seasonal changes in their businesses such as produce haulers. Based on mileage only, electronic data of your mileage is reported directly from the ELD and given to you for free as long as you retain an insurance policy with Canal Insurance Company. The best part, it is free and costs nothing out-of-pocket for the truck driver! The insured only needs to bind the policy and the ELD will be shipped directly to them for quick and easy installation into any or all vehicles listed on the policy. This program is also great for newer trucking companies and especially new owner-operators experiencing difficulties in their first couple of years getting renewed.
Moral of the story: Don’t Give Up Without Calling Tobico Trucking Insurance
We’ve always said that retaining affordable trucking insurance is no walk in the park, but it also shouldn’t make you pull your hair out.
The push for advanced compliance and safety technologies so that insurers can reduce losses is only becoming greater. Furthermore, safety regulations seem to be getting more difficult to navigate both at the Federal level and now in many states. Undoubtedly technology-based trucking insurance programs are already transforming the trucking insurance industry and saving you money. Tobico Trucking Insurance is here to help all trucking companies take advantage of the savings these programs offer.
Our programs and specialty insurance companies are specialized navigators of the trucking insurance industry, and together we can provide more effective and affordable coverage to small trucking companies and owner-operators who are willing to undergo compliance-based programs. With years of industry experience and relationships with trucking insurance carriers, we can provide unique solutions tailored to your small trucking company. Call Tobico Trucking Insurance today if you would like to save money, create a long-lasting partnership with your insurance carrier and put your company back in the driver seat!
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