TNC Insurance: Insure your Transportation Network Company in California

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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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

TNC Insurance: Insure your Transportation Network Company in California

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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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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!

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. But the answer is simple. Retail isn’t dead; it’s boring.

“Fleets and drivers require additional sources of revenue. This is part of evolving and revitalizing the industry. Let’s say a businessman hops straight from a plane into a Flywheel taxi and needs to make a conference call. The driver can simply say, “here, sir, go ahead and use Monster’s crystal-clear mobile speakers.” Millennials also go out for a night on the town. Drivers can say to them, “play your own tunes through our Monsterized equipment.” Flywheel’s Office and Finance Manager, Andy Stice, explained that “this enhances the rider’s experience.” Moreover, Stice explained it “allows them a convenient purchase point, while generating profits for the driver and fleet. And Monster Products are only the beginning.”

Not the Scary Kind of Monster

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“Monster® is focusing on selling products where you live, work and play. Amazon is taking the bulk of retail business, but not all. So, the balance has to go somewhere. “Our partnership with Flywheel is bringing profitable income to fleet drivers and owners across the country, while doing something they were already doing anyway,” said Lucas Gomes of Monster® Products.

With the understanding that drivers do not want to be sales people, the partnership between Monster™ Products & Flywheel is fluid. Monster® Products are best tested tangibly, so you can hear and see the difference. Where can you gain exposure to a captive audience? Vehicle where people are already listening to music, watching videos and making calls. It becomes a shared experience for both the passenger and the driver.

“Izzy isn’t trying to take the taxi industry back to where it once was; he knows that’s futile,” Stice continued. She explained that “his goal is to develop viable options for fleets and their drivers to progress and reinvent themselves.”  Flywheel strives to balance providing “the best full solution for fleets and drivers” with “pursuing a wide variety of partnership opportunities.” Those partnerships “generate revenue for the fleets and drivers and enhance rider experiences,” she stated.

Determined to Survive

As an insurance broker who specializes in taxi cab insurance, I hear multiple times per day from my clients how Uber and Lyft are negatively affecting their business. My clients are frustrated that their profit margins are being undercut by Uber and Lyft drivers who are not required to comply with the same regulations regarding background checks, driving experience and maintaining state financial responsibility requirements with commercial insurance. And commercial insurance is not cheap.

“People say they take Uber and Lyft because it’s cheaper. But that isn’t necessarily the case, especially during surge pricing.” Stice shared, “My friends and I were in Vegas just a month ago for a fun. Surge pricing was 3x the amount of the fare of a traditional taxi going from one side of the strip to the other. And the trip from the airport to the hotel was slightly cheaper and certainly more convenient by taxi,” Stice observed.

Flywheel understands that drivers do not necessarily want to be salespeople. Furthermore, the setup allows drivers to let riders experience the products first. Drivers can then offer riders an opportunity to buy if they like it. Flywheel hopes this no-pressure sales experience will take off. With that success, Flywheel and their drivers could overcome the odds are stacked against them.

By Laura M. Loftus on November 6th, 2018

Learn More

More information about American Business Insurance

Learn more a Flywheel 

See the Monster Products

Learn about TLPA

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

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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

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Flywheel Partners with Monster® Products

Flywheel & Monster® Products Partner to Provide 2nd Revenue Stream for Struggling Taxi Drivers & Fleet Owners

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.
Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent.

At first glance, one would not think that Flywheel would partner with Monster®. However, at this year’s 100th Annual Taxi, Limo and Paratransit Association (TLPA) convention, that is exactly what happened. American Business Insurance was at this event on Sunday, November 28th in Las Vegas, Nevada.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.
Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga.

Flywheel Taxi consists of approximately 230 units in San Francisco and a client of American Business Insurance since 2017. The company includes a full-solution package for taxi fleets, a peer-to-peer booking app for passengers and utilized preeminent. Contrarily, Monster® is the company that revolutionized audio and cable company products. Despite the differences, the partnership of these two companies could greatly increase revenue for taxi drivers and fleet owners. Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well. That venture could provide up $35,000 in additional revenue for drivers simply by allowing riders to experience and purchase Monster’s unique products.

TLPA Convention Surprise

For over 30+ years, American Business Insurance has been a sponsor and exhibitor at the annual TLPA conventions. We cannot deny that, over the past 10 years, attendance has declined and the usual buzz of excitement has been missing.

In the past, taxi operators have traveled from various states, Canada, and The United Kingdom. They have continued to attend the annual conference in order to check out the latest industry trends such as the newest dispatch system s or gas efficient vehicles. They come from near and far to attend breakout sessions and board meetings to collaborate with their colleagues on how to move their FleetForward, the new TLPA motto adopted a few years back.

Hidden under a plain black sheet, donned with the white Flywheel logo and revealed with a splash by actor and Instagram-based internet influencer M2thaK was Monster, Inc. owner Noel Lee’s one-of-a-kind “Monsterized” Bentley Bentayga. The Bentley proved an effective method of showcasing amenities Flywheel and Monster offer fleet owners, which can affordably be incorporated into their own vehicle fleets.

Uber and Lyft Competition

Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.
Flywheel plans to “Monsterize” its entire fleet and encourage partner fleets to do so as well.

It is no secret that taxi companies are struggling while trying to compete with large corporate run companies such as Uber and Lyft. But if they can look at themselves and consider a business model that provides multiple streams of revenue, they can morph into a transportation business that not only upkeeps the safety standards of old-time taxi companies but also provides a unique riding experience to a captive audience. Flywheel and Monster are here to help increase revenue for taxi drivers and fleet owners despite this fierce competition.

“Why do people continue to come to these conferences? They’ve already seen every vehicle out there. They already know about the dispatches and insurance companies. They are looking for hope and some kind of change in the market place that they can continue to do this,” said Izzy Aala, CEO of Flywheel.

Aala, who has been a fixture in the industry for many years acquired Flywheel’s mobile app in April of 2017. He knew something had to change within the industry in order for cab companies nationwide to survive. Flywheel began further developing a full taxi solution and outfitting premier Flywheel Taxi in San Francisco to showcase what is possible when the industry comes together to provide riders with the best experience possible.

Flywheel revealed a “Monsterized” version of one of their fleet’s Ford Escapes outside of the main ballroom and around the Caesars Palace property to further expose to fleet owners what is possible with Flywheel and Monster.

Taxi Industry Evolution & Revitalization

Flywheel realizes giant corporations like Uber and Lyft continuously affect the bottom line of cab companies. Many are small, family owned businesses passed down generationally. Flywheel is looking toward evolving and revitalizing the industry, so they and their drivers can thrive. Enhancing the rider and driver experience to once again make taxis the preferred choice is what Aala aims to accomplish.

Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.
Founded by Noel Lee in 1979, Monster® Products is a company that sells performance-based goods. For example, they sell high performance audio cables. It is difficult to sell without first experiencing it. And this is why the partnership between Flywheel and Monster Products was made.

“I wanted to do something different to evolve and revitalize the taxi industry in a way where everyone wins,” Aala said.

This is where Aala’s vision comes in. Earlier this year, Aala attended the International Association of Transportation Regulators conference in Philadelphia, PA. There he noticed a booth next to his – Monster® Products. Aala was confused why this audio product company would be at such a meeting. B