PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properly insured and protected.

Where to start with TNC insurance

Being in the TNC industry, it may be difficult to find the proper broker that is able to provide TNC insurance. Most everyday insurance companies are most likely not willing to insure a rideshare company due to the high-risk nature of the industry. Insurance companies that write specific policies for TNC insurance are generally specialized brokers who focus on this unique marketplace.

TNC insurance

Luckily for you, here at American Business Insurance Services, we have a direct line to brokers that provide TNC insurance. With 35 years of experience insuring a wide variety of corporate auto fleets, we know exactly what these insurers are looking for in order to get you the best policy.

Questions you may have while looking for TNC insurance:

  • Why you need TNC insurance
  • Types of TNC insurance
  • How to prepare for a quote

Why you need TNC insurance

While researching insurance options for your Transportation Network Company you will quickly realize personal auto insurance doesn’t cover commercial use. However, commercial insurance doesn’t cover independent TNC drivers, even while driving for the company. Therefore, you need TNC insurance for your company to ensure your passengers and drivers are covered incase of an incident.

The National Association of Insurance Commissioners, NAIC, have identified three specific periods TNC drivers are not covered by their personal auto insurance.

  • First period: when drivers have signed into the application but have not yet been matched with a customer.
  • Second period: when drivers are on their way to pick up the customer.
  • Third period: when the driver has picked up the customer and is taking them to their destination.

Types of TNC insurance

In addition, there are two different types of TNC insurance coverage. The first being auto liability insurance for your Transportation Network Company. Auto liability insurance is required by law and protects you as well as your business when you’re at fault in an automobile accident.

Depending upon the coverage, most auto liability insurance covers your company from financial losses surrounding vehicle damage and medical bills of the passengers involved. In other words, auto liability insurance will pay for the damage to other people and their property for which you’re responsible. Furthermore, auto liability insurance usually covers the second and third periods of TNC driving listed in the bullets above.

As for the other type of TNC insurance, there is physical damage insurance. The purpose of physical damage insurance is to protect shared company vehicles from damages. Whether the driver was at fault or not.

To elaborate, physical damage insurance can cover damage caused to your vehicle that is out of your control. For example, vandalism, theft, fire, accidents involving animals, acts of nature, etc. Physical damage insurance also covers at-fault damage caused to the vehicle. However at-fault damage is usually only covered when said damage is caused by the scheduled driver.

TNC insurance

If you want to read more extensively about TNC insurance coverage provided by American Business Insurance Services, Inc. click here

How to prepare for a TNC Insurance quote

If you’re looking to establish your TNC as the next Uber or Lyft, there is a lot of preparations to be made before doing so. Insurers need to do an in-depth analysis of your company before being able to provide you with a quote for TNC insurance. Therefore, in the interest of time, it’s best to have made these preparations before contacting the insurer.

TNC insurance

1. Build the app

One of the first things you want to do is make sure your app is properly constructed and optimized for collecting favorable data points. For example, average speed. If you can prove that, on average, your drivers drive below the speed limit, you’re more likely to get a lower quote than if they tended to speed.

Furthermore, insurance companies want to be able to know things such as: when a trip starts and stops, number of miles per trip and duration of each trip. Therefore, it’s beneficial to both you and your insurer if you have built and optimized the app before contacting for a TNC insurance quote.

2. Business plan and projections

For the most part, this is all relatively simple information you may or may not have already put together when looking for investors. This should include things such as your plans for company growth. How you plan on monitoring and enforcing safety/loss control. And Finally, a set plan on how your company plans on making a ROI.

3. Safety and Training

Due to the nature of their business, insurers are going to care a great deal about safety. They are going to want to see that you have the proper rules, regulations and restrictions in place in order for your company to operate as safely as possible. They’re also going to want to know how often you plan on/provide training to your drivers for a variety of different things.

Insurers are going to want to know a lot about your hiring practices. How old are the youngest drivers you’d be willing to hire? How often do you have them background checked? These are all important questions that will need to be answered in order to get the best TNC insurance quote.

4. Financial balance sheet

Insurers are interested in this information because they want to see two things. First they want to see that you will be able to pay for, and continue paying for, the policy they provide you with. Second they want to see that your company will have the ability to stay afloat until you start turning a profit. The latter is mostly due to the fact that many TNCs don’t start turning a profit in their first year of operation.

5. Other information

Finally, insurers want to see information that will lend further credibility to your name. One thing that will help you accomplish this is information on your investors. Not only do insurers want to get to know your TNC, but they also want to get to know the source of the money behind the TNC. Writing bios on company executives and investors is a good way to allow an insurer to get to know your TNC more thoroughly.

Another thing that helps in regard to the lending of credibility to your name is a summary of your terms of service and privacy conditions. This is where you want to show the insurer that you have policies in place to protect your customer.

Guidance for finding TNC Insurance from American Business Insurance Services

While this may seem like a lot of information to gather for an insurance quote. Insurers need to see this information in order to make sure they are able to match you with the best TNC insurance provider and get you the best policy. Furthermore, insurers are looking for long term, mutually beneficial relationships. Supplying them with this information is an excellent way to build a positive and long standing relationship with your TNC Insurance provider.

Here at American Business Insurance Services, we understand the process of launching a TNC. We understand that it takes a lot of time and effort. And we understand the industry. We can be there for you every step of the way to help make sure that you understand too.

If you have questions or are seeking further guidance, please don’t hesitate to contact us via phone or email. We would love to help you get your TNC off the ground and paired with an insurer that’s right for you.

Insurance Coverage For Your Rental Car Fleet in California

GET A QUOTE

Rental Car Fleet Insurance Coverage in California

Do you own or operate a rental car service? Are you looking to partner with a transportation network company in California? Nowadays there are multiple ways to get into this ever-growing transportation industry. The rise of ridesharing apps and on-demand delivery apps utilizing rental car fleets in recent years, has more and more entrepreneurs looking to start their own transportation companies. The proper fleet insurance is essential in getting your business off the ground.

With the ever-changing market comes the requirement of insurance policies that can accommodate the unique needs of each business. There is no one insurance policy that fits all that’s why American Business Insurance Services, Inc. is able to find you the right insurance policy for your rental car fleet based off your individual needs. Skip the hassle of comparing multiple insurance quotes based off daunting numbers and endless calls with salespersons and representatives. As an independent agency, American Business Insurance Services, Inc. has direct relationships with all insurance companies currently writing specialized policies for transportation companies such as rental car fleets.

Different Types of Rental Car Fleets

As mentioned earlier, the barriers to enter the rental car industry is getting lower in recent years due to the growth of ridesharing apps and on-demand delivery services. More and more people are choosing to travel in vehicles not their own, as well as relying on on-demand drivers to deliver special goods. Especially in places like Los Angeles and San Francisco where traffic is really bad. The new trend of people relying on services of rental car fleets or other on-demand transportation services continues to rise. On top of that, California is by far the biggest automotive market in the United States.

In California people are more dependent on cars than public transit making California a great location to start a rental car fleet company. Whether you own a car rental company servicing travelers and businessmen, or a car dealership providing rental cars to customers, or you are simply an entrepreneur renting your own cars to other people, you will need fleet insurance to cover your company. Luckily at American Business Insurance Services, Inc. we have the connections and expertise to help you find the best insurance coverage for your rental car fleet.

Fleet Insurance – What does It Cover?

Whether your rental car fleet is working with a Transportation Network Company or on its own, the most important coverages to have for your rental car fleet are liability and physical damage. The transportation industry is a high-risk industry and it is important to have coverage for liability and physical damage. Living in California, you’ve probably seen a fair share of accidents on a daily basis on the highways. Accidents do happen, and the cold truth is the more miles your rental car fleet operates, the higher the chance that one of your drivers is involved in an incident.

In case of an incident, proper coverage for liability and collision will give you peace of mind as a business owner by knowing that your rental car fleet is protected on the road. Liability coverage is a must for rental car businesses, because it protects your fleet from potential negligence and mechanical failures.

There are coverage options that will cover all of the cars in your rental fleet, and also coverages that apply to drivers. There are policies for short-term car rentals or ones that operate on a pay-by-mile basis. That all depends on what kind of business you own and operate!

As your business grows, so does your need for more coverage. American Business Insurance Services, Inc. will help you adjust your limits accordingly to make sure you have proper coverage. Our friendly representatives will work with you and your company to fully understand your needs.

Additional Coverages For Rental Car Fleet Insurance

The number of fleet trucks, vans and SUVs on the roads in the U.S. is over 11.7 million. In Los Angeles alone, there are over 6 million vehicles in urbanized areas. The transportation sector is an ever-growing industry. As your company fleet grows, you may want to consider additional coverages such as inland marine coverage to protect any cargo or goods you are transporting.  You may also want to consider raising your liability coverage limits when you have more drivers, because the truth is the bigger your business is the more you have to lose!

Most insurance policies will cover the State’s mandated minimum insurance coverage that include liability and collision coverage. Additional coverages to consider would be roadside assistance, uninsured motorist coverage, and other coverages such as theft and vandalism. Consider the scope of your business, where you operate out of, and any special needs that you require.

Fleet Insurance – How Much Will It Cost

While there is no one single answer to this question, there are some indicators that will help you determine the costs of your fleet insurance plan. Typically, the more drivers and vehicles you have on your fleet, the more expensive the policy is. For example, consider the value of your vehicles – do you own a fleet of luxury European import cars? That is going to cost relatively more to maintain and fix, than say a fleet of economy cars. However, if the cars in your fleet are more likely to break down you run the risk of an increased premium. Another thing to consider is the intended use of your rental car vehicles. Are you using the fleet to transport people? That is going to cost more than  if you own a fleet of service vehicles (plumbers, electricians, etc) that are intended for special uses.

There is no single answer to how much it’s going to cost to insure your rental car fleet, but American Business Insurance Services, Inc will be able to cater to your needs and provide you with a quote in a short amount of time. Get Quote Now

How To Save Money on Rental Car Fleet Insurance

Typically to save money in a competitive insurance marketplace, you’d need to compare the different price offerings from different companies. American Business Insurance Services, Inc. differs from its competitors by its ability to work with different insurance companies writing specialized policies to provide you with a comprehensive coverage package. Located in the Los Angeles metropolitan area, American Business Insurance Services, Inc. has connections not only in California but with insurance providers nationwide. Tell us about your business, and we will do the research and get back to you with a policy that best fits your rental car fleet company.

Other ways to save on your premium is to reduce your coverage, but sometimes this wouldn’t be viable because of your business needs. While this certainly is an option for personal auto coverages, we wouldn’t recommend this for businesses like a rental car fleet. Another way to save on insurance premium is to raise your deductible amount. While this can seem like a cost-saving option in the short term, be sure that your business can pay the deductible when an incident arises.

Look into the regulations and mandated minimums in the State of California. Have an idea of what the minimum cost is going to be and know what your business is looking for. The easiest and best ways to save on an insurance policy is to combine multiple policies under the same provider and maintain a good driving record!

Get an Insurance Quote for Your Rental Car Fleet

In conclusion, you should look into fleet insurance policies if you have multiple vehicles in your transportation network company. Fleet Insurance makes managing your business and expenses easier, because no matter how many cars are in your fleet, one policy covers all! Whether you own a rental car company in California, or you’re just starting a business and looking to purchase a fleet of your own, you should purchase comprehensive insurance coverage. Tell us about your fleet company and we will help you find the best customizable insurance policy!

GET A FLEET INSURANCE QUOTE

Visit Us on Facebook & Instagram

How to Save the MOST Money on Your Commercial Fleet Insurance Rates

ABI Transportation Experts Speak: How to Save the MOST Money on Your Commercial Fleet Insurance Rates

Written by Laura Loftus on Thursday, February 28th, 2019

 

When speaking with clients about their commercial fleet insurance, the most common concern is how to get the lowest insurance rates. About 100% of the customers I speak to daily all have the same goal – they want the lowest insurance rates available and will do whatever it takes to get it. Whether you own a Taxi, Limo, Paratransit or Shared Economy company (peer to peer platform app), it’s a given that you want your commercial fleet insurance coverage at the lowest insurance rates available. What many companies don’t realize, especially start-ups, is that commercial fleet insurance underwriters do quite a bit of digging on your company through a variety of platforms to “check you out” prior to releasing a quote. They read Yelp reviews, they look at your website, they do Better Business Bureau checks – all of it.

There are common mistakes that transportation service companies are repeatedly making that will create doubt in a commercial fleet insurance company. These mistakes actually prevent your broker from being able to find the lowest insurance rates for your company. Most of these companies think they are making business decisions that will guide them toward the lowest insurance rates, and are unaware that their current website or driver pool is actually hurting their chances of achieving the lowest possible commercial fleet insurance rate.

Five common flubs transportation service companies are making that prevent your commercial fleet insurance broker from obtaining the lowest insurance rates possible:

1) Company Website

The first and most common mistake we see from commercial auto risks who are in the “wheels” business as us underwriters call it – is that you over the amount of experience or size of your transportation service company.  It is common for commercial fleet insurance underwriters to google your company to pick apart your website. Here are some items you may think are helping your chances at obtaining the lowest insurance rates but are actually red flags to commercial fleet insurance companies:

  •  Words like “Fast Pick-up” or ‘Delivery in Minutes” – no commercial fleet insurance underwriter wants to see that you are promising rushed services. Rushing = equals unsafe driving behavior.

commercial fleet insurance

  • Advertising vehicles that are not actually part of your fleet. For example, just yesterday I was helping a 35-car fleet in Portland with obtaining commercial fleet insurance quotes. The list of vehicles they provided were all private passenger type vehicles (meaning seating capacity of 8 or less) – good! But when I searched the company online, they advertised a large shuttle bus and a higher seating capacity van. When I asked the client about this, they those vehicles had been sold and they had no plans to replace them. Keeping your website up to date and only advertising only what you can actually deliver will keep unwanted questions from creeping into the commercial fleet insurance underwriters’ mind. Creating uncertainty is the last thing you want to do with a commercial fleet insurance underwriter when trying to obtain the lowest insurance rates.
  •  Age of vehicles is important to commercial fleet insurance companies. Publishing a picture of a 30-year-old vehicle is no bueno. Keep your fleet serviced regularly (we recommend every three to four thousand miles and cycle out old units. Newer, cleaner & well-maintained vehicles are not only more desired by clientele (when trying to compete with Uber/Lyft) but also preferred by commercial fleet insurance companies trying to avoid claims due to mechanical defect.
  • If you boast 20 years of experience but your LLC was filed three years ago, it creates uncertainty with insurance companies. It’s better to accurately reflect your business as it is now, and not what you want it to be five years from now. Just as there are items to avoid putting on your website, there are points that you should include on your website. It is always a good idea to brag about highly trained drivers and safety training you provide (more on this later). Be sure to note the maintenance you keep up with for your fleet, the background checks the city you operate in mandates and the highest level of driving records required for your drivers. Commercial fleet insurance underwriters like stable fleets with safe drivers. Bottom line, safer risks translates to commercial fleet insurance underwriters offering the lowest insurance rates.

2) Creating a Business Name

This may seem simple enough but for transportation business owners looking to for the lowest insurance rates, people often think that commercial fleet insurance companies give the lowest insurance rates to Limo’s and Non-Emergency Medical risks over a taxi or airport shuttle. While this might be true, cornering yourself into a specific type of transportation in your business name narrows the list of commercial fleet insurance carriers you are eligible for. Many markets write only taxis or only limos. So, if you file your business name with the Secretary of State as Laura’s Taxi & Limo Service, LLC. – it could possibly make you ineligible for a limo commercial fleet insurance program because they don’t insure taxis and vice versa – even if your unit type meets their requirements. When talking with clients, I always say it’s best to be general about the transportation type within the name of their business, especially as market conditions change. You may be heavy in taxi trips one year but then obtain a paratransit contract and do more of that the following year. The more years of favorable loss history (loss runs) you can provide, the better chance you have at obtaining the lowest insurance rates. Choosing a business name that is general such as Laura’s Transportation Service, LLC. allows you flexibility to transform and evolve your business as the industry demands change.

3) Loss Control is Everything

Underwriters give commercial fleet insurance at the lowest insurance rates to companies with low levels of paid claims. Even in a hard insurance market, with rates rising for the good guys too, you can expect to pay more for commercial fleet insurance if you’re prior insurance companies have paid a lot in claims. Here are some suggestions in tightening loss control for your transportation service company:

  •  Hire a full-time loss control or driver manager who will enforce a safety culture. Doing this, will lower the frequency and severity of claim payouts and put your transportation service company in a better position to obtain the lowest insurance rates. This person should be in charge of overseeing the overall safety of your company. Managing and coaching your drivers is the key to a successful transportation service company. You are only as good as your worst driver.
  • commercial fleet insurance Invest in cameras that capture not only accidents but also driver analytics. This type of camera system will allow you to review driver behavior and correct bad habits before they cause an accident. We like to say this method is similar to that of a professional athlete. How do they improve? They watch their game film and correct bad habits. Driving professionally is the same. The more you do it, the more comfortable you get and having drivers watch themselves reduces risky behavior dramatically. Additionally, it’s a known fact that many commercial fleet insurance claims are paid because of he said/she said situations. Having accidents on camera is the best way to know who exactly was at fault and exonerate innocent drivers.
  •  Hold weekly safety huddles and or monthly meetings. Review the data and claims that have occurred recently and talk to your drivers about how they could have been prevented.
  •  Commit to investing in annual defensive driving training for your drivers. This annual reminder to drivers will ensure that bad habits are addressed and give each driver a time to reflect on their own performance.
  • Implement a reward program for safe drivers. Giving an incentive, even if it’s small monetary gift cards – keeps your drivers focused and motivated on safe driving habits.

4) The Driver Pool

The Driver Pool is so important when trying to achieve the lowest insurance rates from commercial fleet insurance providers for your transportation company. How you chose to manage drivers and who you hire is crucial. Create formal guidelines that clearly outline what is acceptable for employment. We recommend only hiring drivers with zero accidents within the past three years and minimal moving violations. Clean MVRs are best but we know that professional drivers with experience usually do not have clean MVRs and this is ok. Professional drivers are on the road up to 3x more than someone commuting to/from work so it’s a given that they will most likely have more violations on their records. Repeat offenders can impact the cost of your commercial fleet insurance and should be let go. No one is perfect, but you should train your drivers with the goal to be as safe as possible. Excessive violations on a driving record can cause surcharges and prevent you from obtaining the lower insurance rates. Additionally, younger drivers sometimes generate higher premiums for commercial fleet insurance as well as newly licensed individuals.

5) Contact an Experienced, Transportation Insurance Broker

commercial fleet insurance

Working with a transportation specialist versus a local agency makes a huge difference as commercial fleet insurance brokers have access to many more transportation focused insurance companies. Also, an experienced broker will review your company data prior to submitting to commercial fleet insurance companies. If they see something a commercial fleet insurance company won’t like, they can address it with you and provide you with an opportunity to make changes before submitting to each carrier. The more information you can provide to a commercial fleet insurance underwriter, the better chances you have at achieving the lowest insurance rates. Because the for-hire, livery insurance market is so thin, carriers often get multiple submissions from duplicate brokers. Try to work with one broker at a time. You may think contacting multiple agencies well help you, but if they are all going to the same markets for commercial fleet insurance – it’s duplicating not only your own work, but the insurance companies as well. The livery market is a tough class of business and finding an experienced broker will absolutely give you a leg up on finding the lowest insurance rates over a generalist broker.

American Business Insurance Services, Inc. has been working with transportation companies across the nation for 35+ years. We have direct relationships with the most competitive commercial fleet insurance companies. We know what it takes to submit a complete application and present your company in the best light possible – which will no doubt translate to finding commercial fleet insurance at the lowest insurance rate.

Looking for a quote? Click here

Autonomous Car Insurance and How it Works

How Autonomous Car Insurance Works

With technology in our society advancing at such an incredible rate, all of our cars could have minds entirely of their own within years. As a matter of fact, we are on our way there already. They are not yet available on a large scale. However, autonomous cars certainly are a reality and could eventually integrate themselves fully into our everyday lives. The question that many are asking has to do with insurance for an autonomous car. Car insurance typically protects the driver and car from mistakes that are caused by the driver. So if all cars will be completely autonomous and self-sufficient from humans, what is the point of insurance? If the car gets in an accident, who is then held responsible? In this futuristic dilemma, car insurance will work a little differently than we’re used to, but American Business Insurance is prepared to handle it.

How Do Autonomous Vehicles Work?

Essentially, autonomous vehicle manufacturers and designers will think of everything that a car needs a human for and remove those needs. For example, an autonomous car will be built with a GPS in it, so it doesn’t need a person to control navigation. Many of them also have sensors in and around them, in order to help them avoid accidents. Of course, this would typically be the job of the driver. There is also the element of augmented reality. AR is a method of getting information to the driver, such as displaying it on the windshield. This information could be directions, the speed of the car, information about the music thats playing, etc. And the vehicle is the one that has it all. The would-be driver just turns into a rider, and the car handles the rest.

Changes in Insurance

Insurance for autonomous vehicles will play a different role than insurance for a regular car. Instead of the driver or owner of the vehicle being responsible for accidents, it would likely be the manufacturer of the autonomous vehicle. Now, its rare for a malfunction of the vehicle to be the cause of an accident; they are almost always a result of human error. This could be the largest change to car insurance if and when autonomous vehicles become a norm in our society. Manufacturers being held responsible for insuring each vehicle themselves will create an expensive, long-term process before the vehicles can be safely put to use. It will also require an extensive process of making sure that many ethical issues are covered.

ABI’s Role

The idea that human-operated vehicles will be obsolete in everyday life may seem plausible only in the distant future. However, functioning autonomous cars are on their way to changing transportation forever. There are countless pros to autonomous vehicles, but insuring all vehicles so that riders are promised complete safety would be the primary con. To ease the process of insuring self-driving cars, ABI’s Insurance Services have exactly what it takes for companies to make the transition from human-driven cars to self-driven cars. With 75 years of experience in transportation network companies, ABI can make riders feel safe using new technology, and help our society continue to evolve in amazing ways. ABI has direct relationships with the insurance carriers they write policies through, allowing for great efficiency and attention to detail. But you don’t have to wait for all cars to drive themselves to achieve this kind of protection and safety; contact ABI for both large and small fleet insurance today!

Autonomous Vehicle Insurance: Self-Driving Cars

I know it is hard to believe that autonomous vehicle insurance is actually a thing now, but it is and it’s only going to become more relevant as time goes on. So, when your business decides to join the self-driving car movement it will be pertinent for your vehicles to be properly covered. This is where ABI Insurance Services Inc. comes in!

ABI Insurance Services Inc.
ABI has been around since 1985, making them a veteran when it comes to insurance services. Currently, they are one of the largest providers for commercial transportation insurance in the nation with over 40,000 vehicles being covered. Although they are seasoned when it comes to insurance policies they are also well aware of the rapid growth and change within the vehicle industry. This not only makes ABI highly experienced in business vehicle insurance, but also makes them one of the most innovative and up-to-date when it comes to the latest advancements in cars.

Autonomous Vehicle Insurance
With autonomous vehicle insurance being a newer concept, it is paramount for your small or large fleet insurance to be up to par with policies. At ABI, exclusive relationships with various insurance carriers allows for policies to meet all the specific criteria for your business. This means that the agonizing insurance process of underwriting, quoting, and binding of policies can all be done in house which in turn means faster, more specific services for your insurance needs. It is ABI’s business to understand their client’s business and this is exactly why ABI has been around for over 30 years and created such strong partnerships.

Why Autonomous Cars
Studies have shown that a computer is more of an ideal motorist than humans, this is further supported with the statistic that over 81% of car crashes are a direct result of human error. This only makes more sense when you put into consideration that there are no opportunities for a computer to be distracted by its surrounding environment. For human driven cars, most accidents are outcomes of the distractions correlated with simultaneously driving and texting or eating food. With autonomous cars, you can focus more on those things that would otherwise distract you from the road which in turn would save you time in your busy lifestyle. Not if, but when self-driving cars start to take over the roads it will improve traffic conditions exponentially because large numbers of self-driving cars mean less human errors which would result in less overall congestion.

Recap and other Pro’s for Self-Driving Vehicles:

  • Less car crashes
  • More free time
  • Less congestion
  • Higher speed limits
  • Less drunk drivers
  • Less parking concerns
  • Disabled support

ABI’s portfolio of coverages include Auto Liability, General Liability, Work Comp, Occupational Injury and Collision insurance for virtually any commercial vehicle including Truckers, Movers, and more. With their focus falling within the commercial vehicle realm they are the ideal service to contact when you make that innovative transfer from a fleet of human-driven cars to self-driven cars. You can contact ABI for a quote today by clicking on button below. Safe autonomous driving!

For Hire Livery Insurance

For hire livery insurance is a special type of insurance that covers vehicles used to transport people, such as Taxis, Limos, buses, and other non-emergency transport services. American Business Insurance covers a wide variety of services, that means we cover other non-traditional services other than taxis and black cars. If you are a business owner that operates a fleet of transportation vehicles, you should consider getting coverage from American Business Insurance. Why? Because at American Business Insurance we are always thinking ahead, and we have the flexibility unlike the other large insurance corporations. That is why we are introducing special insurance coverages for drivers for Uber, Lyft, Turo, and Get Around. This shows that our business is always innovating and looking for ways to change with the industry.

Introducing Period X ™ & Period Zero ™

Period X ™ & Period Zero ™ are our brand new services tailored to for hire livery services such as Uber, Lyft, Turo and Get Around. These special coverages are similar to our other fleet insurance policies, where the coverage is on a pay-per-drive or pay-per-mile basis. American Business Insurance understands that these ride sharing services are on the rise recently, and in order to counter these changes in the industry our company needs to stay innovative to be on top of the game. One of the benefits for For Hire Livery Insurance is the collision coverage. According to the Insurance company State Farm, on average a driver files an insurance claim every 17 years, or roughly one accident per 300,000 miles you drive (based on the average American driving statistics). As a ride sharing driver you will be driving A LOT more than the average American, that means you should consider getting For Hire Livery Insurance even more than the average American.

Besides Collision coverage, our for hire livery insurance coverage includes different options such as liability protection, driver protection, and vehicle protection, and also the ability to cover your medical expenses in case of an accident. At American Business Insurance, we understand that accidents to happen, and we are here to minimize the trouble for you. If you own a car and use it for ridesharing services, you should consider using American Business Insurance’s brand new Period X ™ & Period Zero ™ plans.

Other For Hire Livery Insurance Options

If you don’t drive a Uber or Lyft, we do have other coverage that targets specific non-emergency vehicles such as buses, limos, black cars, and even trucks. Some of these services include Child Transportation, Elderly transportation, and also airport transportation services. However, many of these services have certain limitations based on the vehicle and the State that the company is operating in. At American Business Insurance, we strive to provide you with the best For Hire Livery Insurance quotes that are tailored to your specific company and your situation. Our company operates across the United States, that means we know all of the Ins and Outs of each State and its specific regulations.

In conclusion, you should consider American Business Insurance if you are in the market of For Hire Livery Insurance. Throughout the 30+ years American Business Insurance is in business, we have always strived to provide the best insurance coverage tailored to your specific company. So what are you waiting for? Go online to abiweb.com and shop around our different policies, and even if you’re not in the market for For Hire Livery Insurance policies, we have other commercial insurance policies available. Get Insured today.

PERIOD X™ Fleet Management Software with Insurance Built In

Period X™ Quote

What is Period X™ insurance and how does it work to help you manage your fleet?

American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround.  This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.

 

 

What a Period X™ Insurance Policy Provides

Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.

fleet management

An insurance policy with fleet management software

We didn’t stop at just putting the Period X™ insurance product together, we did a lot more.  Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet.  It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:

  • Ability to add/delete vehicles online

  • GPS track each and every car at all times

  • Check billing

  • Access ID cards and so much more fleet management tools

Period X™ is fleet tracking with the insurance built in!

Why we created Period X™ with fleet management software

As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story. fleet management software

Then, not too long ago, something called Uber and Lyft came onto the scene.  All of the sudden, things got complicated really fast in the insurance world.  These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.

Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars.  The term peer-to-peer rentals was coined.  

A New Problem Arises

Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.

Napkin math ensued and a new problem emerged: 

“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”  

The answer to that question is: Period X™ Insurance!  Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced app-based insuranceinsurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.  

There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time.  The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.

fleet management software

 

Breaking down insurance policies divided into separate periods of time:

After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.

insurance policy

The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated. 

TNC insurance policy

Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.

Period Policies for Commercial Auto Working Together

The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.

After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.

A few select companies have established a niche in this territory and filled this demand successfully.  These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood. 

Contact Us For Full Details on Period X™ and our Fleet Tracking Software

We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!

Call Today: (800) 980-1950

https://abiweb.com/

Follow Us For More!

Instagram

Facebook

Linkedin

 

 

TNC Insurance: Insure your Transportation Network Company in California

REQUEST A TNC INSURANCE QUOTE TODAY

What is a Transportation Network Company?

Transportation network companies, TNC for short, are companies that fall under the umbrella of ridesharing. Uber, Lyft and DoorDash are the obvious examples of extremely successful TNCs. Any company that hires people as individual contractors and employs a shared-economy type business model can be considered a Transportation Network Company. A Transportation Network Company is required to have TNC insurance.

Since the early 2010s, the TNC industry has taken off at a rapid pace especially in California’s large urban cities. The impact of Transportation Network Companies in cities has resulted in a decline in public transportation in recent years. San Francisco has become ground zero for a lot of the giants that dominate the ridesharing industry such as Uber and Lyft. The next big Transportation Network Company in California could be your business, but first insurance!

TNC insurance

If you’re reading this, you’re probably looking for the necessary information to grow or get your TNC off the ground. One of the most important steps required for your business venture is to make sure your drivers and passengers are protected with TNC insurance. Keep reading to find out how to make sure your Transportation Network Company is properl