Progressive raising rates
- Thread starter RMPM01
- Start date
It is less about the loss rate per mile and more about the actual loss. Look at the limits of many auto policies. It's a fraction of what you and I carry so the lawyers come after the money.
Yup, and from my experience as a fleet owner, the big companies just do a better job hiding and justifying the fraud. Glad it's just me now.
zorry
Veteran Expediter
Well, when over half my loads for my vans where offered under a buck a mile I started selling my vans as drivers moved on. And even you wonder kids running for "good money" are kidding yourself. With today's overhead the margins are garbage.
Guess that depends who you run freight for.
So your sayin a carrier with 300 vans, straight trucks and tractors and some drivers with speeding tickets and logbook violations should be able to buy insurance cheaper than someone like me with one van and a perfect driving record. When you break the carriers policy cost down to a per unit cost it will still be higher based on the carriers higher risk factor.
LOL.... exactly!
I didn't either, but I know enough about it to know there is nothing easy about dairy farming...even if somebody gave it to ya...lol
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Even single policy holders rates are set by looking at groups of people. Yes a good driving record helps but your still lumped in with a group to determine rates.
Sent from my Fisher Price - ABC 123
Hi Guys,
I got a "heads up" there was a thread on Progressive Insurance rates on EO, and after I read through I thought I’d respond as CIS writes most of their business through Progressive.
Yes, Progressive rates have gone up for anyone with an MC number or Owner Operators hauling for multiple carriers. No, it’s not because of Hurricane Sandy, it’s because the Expediting Loss ratio for Progressive on this segment is currently sky high. (Example: For every 1 dollar they’re insuring, they’re losing 3.)
This is because of accidents, of course, but also because a few bad apples game the system with incorrect drivers, radius or outright fraud that is unfortunately quite difficult to prove. (I blogged on this subject on Jan 14th.) Some areas, like Illinois based policies, have been especially hard hit with losses.
Another huge challenge is unpaid premium. Because Expediters move around so much...and lately the less than optimal “nomad” joining us (LOL)…
….they’re hard to track down so a lot of insurance goes unpaid when someone decides within 6 months they no longer want to Expedite and it goes to collections.
CIS is licensed to write for a dozen companies, but the reason we continuously partner with Progressive is because they are the only insurance company that has embraced the Expediting niche for the coverage required.
Traditional Truck Insurance companies don’t want anything to do with Expediting for small Motor Carriers or individual Owner Operators. Traditional General Insurance companies won’t cover Trucking for Hire with an Unlimited Radius. …and there are painful claims issues with these companies when someone sneaks in an Expediter where they don’t belong.
When an Owner Operator is leased on to One Motor Carrier following the traditional format, CIS/Prog still offers better rates, coverage and service to Owner Operators than most in-house company plans. The majority of our clients still find us very competitive.
I’m sincerely sorry some good people are affected as Progressive endeavors to right the financial ship, but I’m confident this storm will pass and we’ll see brighter days ahead. Thanks to all our loyal clients and advocates, we appreciate all of you.
Shelly & John w/ CIS
I got a "heads up" there was a thread on Progressive Insurance rates on EO, and after I read through I thought I’d respond as CIS writes most of their business through Progressive.
Yes, Progressive rates have gone up for anyone with an MC number or Owner Operators hauling for multiple carriers. No, it’s not because of Hurricane Sandy, it’s because the Expediting Loss ratio for Progressive on this segment is currently sky high. (Example: For every 1 dollar they’re insuring, they’re losing 3.)
This is because of accidents, of course, but also because a few bad apples game the system with incorrect drivers, radius or outright fraud that is unfortunately quite difficult to prove. (I blogged on this subject on Jan 14th.) Some areas, like Illinois based policies, have been especially hard hit with losses.
Another huge challenge is unpaid premium. Because Expediters move around so much...and lately the less than optimal “nomad” joining us (LOL)…
….they’re hard to track down so a lot of insurance goes unpaid when someone decides within 6 months they no longer want to Expedite and it goes to collections.
CIS is licensed to write for a dozen companies, but the reason we continuously partner with Progressive is because they are the only insurance company that has embraced the Expediting niche for the coverage required.
Traditional Truck Insurance companies don’t want anything to do with Expediting for small Motor Carriers or individual Owner Operators. Traditional General Insurance companies won’t cover Trucking for Hire with an Unlimited Radius. …and there are painful claims issues with these companies when someone sneaks in an Expediter where they don’t belong.
When an Owner Operator is leased on to One Motor Carrier following the traditional format, CIS/Prog still offers better rates, coverage and service to Owner Operators than most in-house company plans. The majority of our clients still find us very competitive.
I’m sincerely sorry some good people are affected as Progressive endeavors to right the financial ship, but I’m confident this storm will pass and we’ll see brighter days ahead. Thanks to all our loyal clients and advocates, we appreciate all of you.
Shelly & John w/ CIS
I just got renewal letter from Progressive and I was in shock. Rate went up $1200 per year
I called CIS and I was told that because of storm sandy progressive is raising rates across the board
$1200 is just too much !!!!
I'd tell 'em to fire Flo and reduce the rates. They pay a fortune for those stupid commercials...
Give Flo a raise!! 
Flo is earning her money by catching these insurance Cheats! Go Flo!!
I appreciated Progressive embracing the Expedite segment when I used them. However, it is just like a Carrier or a fleet owner attempting to help a driver out.......you just cannot. There are simply wayyy too many scumbags out there that will discourage folks from nurturing others with any kind of comfort that the outcome will be rewarding. It simply is an ongoing problem with....scumbags, evereywhere and in all facets. Sooooo there you go.........how many have observed something [not right] with what was going on in the industry and jes let it slide?? Should you'v dropped the dime??? Dunno, but y'all are going to be a bit lighter in the azz pocket because you didn't. Maybe?????
The concept that one safe driver is a better risk than a fleet is mathematically simply not true. The larger the fleet risk is spread. A safe small fleet can not spread risk wether they are at fault or not, the insurance company has to pay in many states. So while one individual may have a great record, he can have one accident (at fault or not) and wipe out years of premiums. It is part of the basic basis of insurance, risk and pricing.
Its like the Concorde having the best safety record and one crash turning it into the worst. (Hopefully you'll have landed when you read this)
paullud
Veteran Expediter
They have overhead like any business but their ability to buy say 1 million pairs of jeans vs a mom and pop only getting 100 means they pay way more per pair.