That's an understatement. Between this thread and the Did they act fair thread, totally incomprehensible just begins to describe it. My IRT decoder ring had a systems meltdown.
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That's probably it.
Unfortunately, there are a lot of van drivers that don't have the savings for something like this. Then the carrier ends up paying it.
We are in the process of starting an escrow program, more for the maintenence side of it.
I wonder at orientation how many recruits are actually told they have to pay the deductible on the cargo portion of the policy? I have NO recollection at either carrier being told of this...was told carrier pays the cargo ins...but I can't recall being told straight out I'd be responsible for the deductible
I presume the answer is "kiss it goodbye"...
Dave, I'm confused as well as you. They're not. And for what I know, it's mandatory, it's not optional.
Beside that buyback thing, there is already an escrow of $1300 per unit ($65/wk)...
For the 4 years I've been driving for the same Expediting Company my Monthly Deductions have been $386.76 Monthly, which is $96.69 weekly. Now, without the QC I'm Paying $66.69 wk. or $266.76 mos.. Yeppers, no matter if the Truck is moving or sitting. Have known that from the First day of Orientation early '11.
I really don't want to "throw someone under the bus" without some clarification. That is why it is confusing. I'm am not understanding how you pay for a deductible in advance on a claim that hasn't happened? Maybe I am missing something? If you do pay this deductible and have no claim, do you get the money back plus interest? Simple questions for a simple mind.
As for a maintenance account, not understanding that either. If someone can't afford maintenance on their vehicle, probably shouldn't be doing this. Again, not understanding that concept.
What bothers me about some of this is that none of the game playing existed years ago. It has become a much different environment. Much of what I think I am seeing in this thread is "Chinese cups".
As for a maintenance account, not understanding that either. If someone can't afford maintenance on their vehicle, probably shouldn't be doing this. Again, not understanding that concept.
What bothers me about some of this is that none of the game playing existed years ago. It has become a much different environment. Much of what I think I am seeing in this thread is "Chinese cups".
So either your company doesn't hold back an escrow amount or they forgot to stop it.
The amount or duration isn't relevant to whether a carrier is transparent with what the fees represent.
Just sharing with Opel, so he knows it's not just he who's paying a high weekly Deductible.
....or was.
Some of the confusion could be attributed to the use of the word deductible. Deductions and deductible are being used interchangeably. In this thread let's use deduction to mean a weekly fee removed from one's settlement, like a QC fee. As for deductible, when using this word, preface it with the word insurance, as in, I damaged some freight and have to pay the first $2000(insurance deductible) of the claim.
The biggest concern isn't the deductions, but the driven miles. The trucks are barely moving, and when they do, they're doing it for peanuts. When I was with Nations, the deductions were about 600/mo, but it didn't bother me since they were keeping me busy, they pay was decent, as well as the loaded miles...
I think the deductible buy back is similar to the insurance policy car dealers try to sell you when you buy a car. It's basically another insurance policy that will pay the deductible for you. If this is a policy written by an outside insurance company then it's probably legal. If this is a policy underwritten by the carrier it would be illegal because the carrier is not a licensed insurance company.
In other words if the insurance carrier keeps that weekly deduction in their own bank account and then covers a deductible for actual cargo loss claim they are trying to be an insurance company which is illegal.
In other words if the insurance carrier keeps that weekly deduction in their own bank account and then covers a deductible for actual cargo loss claim they are trying to be an insurance company which is illegal.
Last question first - no, you don't.
First question second - a buy back deductible is most often found in homeowner and commercial property policies, but you can find them anywhere. They are also pretty common in commercial trucking. For auto insurance, a Glass Buyback Deductible is pretty common. A buyback deductible is a provision that lets you pay a lower deductible when you have a claim that exceeds your original deductible. Buyback deductibles might not make sense at first, however, they're a brilliant solution to a common problem. Sticking with glass, let's say you have a comprehensive policy with a $500 deductible. A new windshield might cost you $350 or $450. You can reduce the deductible on your insurance by paying a much higher premium, of course, or you can keep your main policy the same and then pay a small deductible buyback premium and reduce your deductible for glass replacement only to $100 or lower.
If you are a homeowner with a $5000 deductible, a deductible buyback can reduce your first dollar losses from the deductible to $1000 or even eliminate it completely. And the combination of the premium for the policy with a high deductible, and the premium for the buyback deductible, is less than paying a premium for a lower deductible. Also, buyback deductibles are usually rather specific. Like, it may only cover the deductible for wind damage to the home, but not for fire or some other loss. Or for truck and auto, it may cover glass only.
In the case of cargo insurance with a $2000 deductible, a $26 a month ($312 a year) deductible buyback premium to eliminate the possibility of having to pay $2000 at a loss is certainly cheaper than having to pay the premiums on a cargo insurance policy with no deductible.
I don't have any idea if many expedite companies do it, but the big TL and LTL carriers almost certainly do that with their own policies, and more and more O/O leased to carriers are getting deductible buy backs. Think of it as literally buying back your deductible, so you won't have one.
You'll see it mentioned here and here.
You'll see it mentioned here and here.
All I know is that is a lot of money for deductions. It doesn't cost me that much for my fleet of 6 trucks