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Risky Business

How to spend less on insurance

By Shelly Benisch, C.I.C. Commercial Insurance Solutions (CIS)
Posted Jun 7th 2010 5:30AM

Hi Everyone, Let’s explore the number one question we get everyday; how can I spend less on my insurance?   The answers can vary but there are a few points that can be useful to all Expediters.

 

We’ll deal with "leased on" owner operators first.   The most important point to address is the availability of insurance options.   Most of the Expediting Motor Carriers have a basic NTL/PD policy available to you.  

These inhouse plans offer you a set policy with few choices and a predetermined cost ratio...the advantage is it’s simple, but the disadvantage is a preset cost ratio.  

In other words, you're thrown into a pool of other drivers who may not have your personal high level of driving and financial responsibility.  So the major drawback to the convenience of payroll deduct is extra cost and less control to you.

99% of all expediting companies allow you to buy your own insurance, as long as you follow parameters such as type & limits.

 

When you purchase your own NTL & Physical Damage Policy that belongs only to you, it supports the "Independent Contractor" status...you are not an employee of the Motor Carrier, you are an Independent Owner Operator, after all.

    

You are probably eligible for several discounts and programs that can often dramatically lower your costs vs. a basic company plan.   A specific quote for you can give you the numbers you need for an informed decision.

...I'll talk more next time on coverage differences between company plans and independent plans.  Enjoy the sunshine out there!  Shelly

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