What is Period X™ insurance and how does it work to help you manage your fleet?
American Business Insurance Services, Inc. developed Period X™ for fleet owners or individuals that are renting their cars out on a car sharing platform. This applies to platforms such as Turo, HyreCar or GetAround. This coverage comes with fleet management software through a web-based dashboard at no extra cost to your policy. This fleet management software comes with tools to ensure your fleet is running at maximum efficiency. When managing your fleet that operates through a Transportation Network Company, the coverage is usually provided to the renter through TNC Provider Insurance. It is important for fleet operators to know that insurance is not supplied through TNC Provider Insurance when the car is not rented out. Of course you want to make sure your car is covered at all times. That’s where our proprietary Period X™ insurance coverage comes into play.
What a Period X™ Insurance Policy Provides
Our Period X™ Insurance policy provides more than the minimum state limits in
almost all 50 states. A comprehensive insurance product to cover fleets that
are being rented out on Peer to Peer (P2P) rental platforms such as the ones mentioned above. Our product is one of a kind. If you are renting your vehicles out on P2P rental platforms PERSONAL INSURANCE DOES NOT COVER YOU for this type of business model.
An insurance policy with fleet management software
We didn’t stop at just putting the Period X™ insurance product together, we did a lot more. Every Period X™ policy holder receives a proprietary device for each vehicle that they insure. This includes a fleet management web-based dashboard to manage your fleet. It would be one thing just to have proper coverage that nobody can offer, but below are some of the additional services we provide as part of this coverage:
Ability to add/delete vehicles online
GPS track each and every car at all times
Access ID cards and so much more fleet management tools
Period X™ is fleet tracking with the insurance built in!
Why we created Period X™ with fleet management software
As usual, the best place to start is always the beginning. To make a long story much shorter, in the beginning there were taxicabs. When taxicabs were the only animal of their kind roaming the earth, life was simple and there was only one period of time. Things were pretty easy. If you needed insurance for a taxicab, you got a taxicab insurance policy that covered that taxi company 24 hours a day, end of story.
Then, not too long ago, something called Uber and Lyft came onto the scene. All of the sudden, things got complicated really fast in the insurance world. These companies found that if they divided their insurance policy into separate periods of time, and that each period had a coverage limit assigned to it. This made it possible to reduce their exposure (and their insurance premiums) to maximize profits.
Then, we had another new company (HyreCar) facilitating TNC rentals between rideshare drivers that needed cars and vehicle owners who wanted to make money by providing those cars. The term peer-to-peer rentals was coined.
A New Problem Arises
Initially, the idea was that personal insurance would cover the party that was renting their vehicle out to the TNC drivers as long as they only had one or two cars. It did not take long for vehicle owners to see that they were netting $700+ a month per car. Seeing such great results, this resulted in the vehicle owners adding more and more cars until they had fleets. Vehicle owners now had 10, 20, or even 30+ cars, which is not covered by personal auto insurance. This issue lead to the need for the Period X™ product to be created since personal insurance doesn’t cover fleets that are primarily used to make money via rental app platforms and especially not TNC rentals.
Napkin math ensued and a new problem emerged:
“How do I place insurance on my fleet of cars under an LLC or Corp and keep my personal lines insurance pricing?”
The answer to that question is: Period X™ Insurance! Our agency was the brains behind this exciting new insurance product. We are now positioned to bring it to the masses! Now, fleet owners who place their inventory on platforms such as; HyreCar, Turo, GetAround & similar peer-to-peer rental platforms have access to a reasonably priced insurance product that covers their fleet for only the period of time when the vehicle is not rented out and is being serviced and maintained to ready the car for the next rental.
There are articles upon articles online in regards to Periods 1,2 & 3 and why they are the way they are. The basic idea is that when a rideshare driver has the rideshare app off, then the rideshare company has no involvement in what that driver does with their car. This results in no insurance for that period of time. The instant the rideshare app is on and the driver is engaged with it, Period 1, 2 & 3 begins and typically state minimum auto liability limits apply.
Breaking down insurance policies divided into separate periods of time:
After the app is turned on and driver is engaged with Period 1, they scan for rides
they’d like to take. The instant the driver accepts a ride, they have entered Period 2. The insurance coverage offered by the rideshare providers increases a bit more to cover incidents that might occur while the driver is on their way to pick up a passenger.
The last (for now) action involved in a typical rideshare exchange is that the driver arrives at the pick-up destination. The instant the passenger(s) get into the driver’s car, Period 3 is activated.
Period 3 typically involves $1,000,000 of auto liability coverage via the rideshare company insurance policy. This is the riskiest period of time, because any accident occurring during that period fully engages the rideshare provider and all participants involved with that ride.
Period Policies for Commercial Auto Working Together
The “Period 1,2 & 3” policy setup is now the industry standard for app-based transportation companies that offer rides as a service. Now with American Business Insurance Services, Inc. Period X™ insurance coverage, fleet managers are able to go beyond the industry standard. With our Period X™, coverage never slips through the cracks making sure your TNC fleet is protected at all times.
After Uber & Lyft had been around for a couple of years, opportunity-minded people started to notice the great deal of demand for vehicles from drivers who wanted to make money driving for TNC companies, but did not have the means to purchase, lease or finance a vehicle for various reasons.
A few select companies have established a niche in this territory and filled this demand successfully. These companies didn’t only see this driver need for vehicle inventory in the marketplace. They saw plenty of regular people out there that are not always driving their personal vehicles, or who were interested in purchasing vehicles for the sole reason of renting them out to TNC drivers who needed them. This is an industry that expected to have rapid growth. When creating a TNC company having the proper policy coverage protects your business and livelihood.
Contact Us For Full Details on Period X™ and our Fleet Tracking Software
We’d love to tell you everything about this program because we’re SO excited about this new product. We can’t just give away all our secrets at once, can we? What we can tell you is that we’re open in most U.S. states, have a full-time I.T. department dedicated to continuously evolving the technology behind this product. Our experienced team of licensed professionals are excited to talk to you about how you can get Period X™ Insurance on your fleet. Give us a call today! Let’s solve your fleet insurance / management problems so you can get back out there and make some money!
Call Today: (800) 980-1950
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