A short, conversational YouTube explainer by Hunter Nelson describing pay-per-mile insurance for truckers: what it is (auto-liability billed by miles while physical damage/cargo remains fixed), which providers currently offer it (primarily Canal, with HDVI coming and a few mentions of Nirvana and Fairmatic), when it makes sense (beneficial under roughly 80,000 miles/year and especially for much lower-mileage local operators), and how it’s implemented (ELD or in-truck tracker, agent/broker setup and direct billing).
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Today I'm going to talk about pay per mile insurance. So you there are all sorts of paper mile programs out there for contractors for trucking depending on what you're at or what you're, what business you're in. So obviously if you're watching this most you guys can be truckers because that's the channel's about. The three companies that really do the pay per mile for trucking are going to be HDVI Canal. And I've heard some rumors about nirvana doing it somewhere. I can't really find where Nirvana will do. Paper Mile Trucking Canal is going to be your main one. They are the one that I use. I haven't found where nirvana is going to come into play, but they're not going to come play much because you got to have 11 plus units. And then usually if you're 11 plus units, you got to be a local operation to really be having to pay for mil. Make sense? HDVI I will be working with, I chose not to quite yet because I feel as they have some work because they're a newer program. Once they get things rolling and it's a good product for the client, we'll get things going there. So worth the bat what is paid per mile insurance? Well, pay per mile insurance is going to obviously charge you for the miles you drive. Now it's not going to be if you park the truck for a month, you got no payment due. It is going to be your auto liability insurance that's going to be adjusted. If you guys are unfamiliar with what auto liability is, I got a video on it. Otherwise you typically have three main coverages on your policy. Auto liability, which is protecting other people on the road if you get an accident with them. Physical damage, which is your truck and your trailer, whatever you got being protected, the full coverage and you get cargo, it's cargo, it's going to be protected there all the way abilities about 80% of your premium. So if you're not driving, your insurance check or insurance bill for the month is going to be dirt cheap. So that's kind of how it rolls. Your insurance is obviously going to be difference based off of every month, how much you're driving, all type of stuff. But your physical damage and cargo are going to stay the same every single month. So what you might be wondering is for one, how do you set up with this? We have a great relationship with our canal underwriter. We can get you a canal quote for the paper mile. They are the main ones who do the pay per mile. If you guys Are a contractor or anything else like that. You have Pouch, you have Fairmatic, you have all this type of stuff. One thing to mention is Fairmatic has also got a really good program for this stuff. They'll do the last mile delivery. So kind of delivery services or taxi services and contractor auto, but straight up truckers. It's going to be canal. HDVI is going to be there, I'd say six months. They're going to be killer at this. That's their whole deal. And nirvana, I don't hear. I've heard about them one time so I wouldn't count on them. When does a pay per mile option make sense? A pay per mile option is going to make sense? Well, if you're taking trips quite a bit. So it's like you get no money coming in. Obviously you don't want to have big insurance bill. So this, even though it might not be cheaper for you, it helps because when the money's coming in, the money you have, you'll be paying your insurance. But if the money's not coming in your insurance supposed to be dang near nothing. The other thing is going to be how many miles you're driving a year. I see most truckers that talk to you driving 125,000 miles a year, give or take. Right? The pay per mile insurance can be really good. If you're under 80,000 miles a year, it's going to save you so much money it's going to be unreal. I had one guy for an example here. One guy tell me he was going to be driving about 55,000 miles a year. Obviously it's about half of what people are typically doing. It's kind of a local guy, he's a box truck, but he's in Texas too. So he was getting insurance quotes for 25 to 30,000 a year for his box truck. Just getting started. My quotes for a tickle program really, really getting things cheap was about 20,000 a year. That was saved five grand for the next best quote. Pay per mile insurance came in at 15,000. I shaved off another 15,000. And if he didn't have me, I already was going in there and splitting up. Quotes make things way cheaper but just progressive. Biggest player was 25,000 a year. Canal, Paper Mile, I want to say they're even less. Actually they were about 14,000 a year. And then I had a gal in Minnesota doing the exact same thing. Just Minnesota came a 13,000 year new venture. Those rates are absolutely unheard of. If you're 20,000 a year new Venture, you're, you're sitting pretty dang good. Sometimes you can go in there, split up the auto liability, the physical damage. Different companies get rates down, but most agents, they're just gonna, they're gonna hand you their quote for about 25k a year. So it could be dirt cheap. And then yeah, I mean the reason to be, you know, if you're, you're taking trips. So that's what paper mile insurance is. I have a blog on it if you guys want to find out more how it works, how they track you, it is going to be. Well, I know hdvi. You're going to pay the agent, agent pays them. That's a big pain. Somebody's going to pay. It's a direct bill type of deal. The insurance company, they're either going to hook up to your ELD or they are going to have a tracker in your truck. And then you'll kind of have an idea of what your bill is every month, whether they're going to send you. Well, they're going to send you an invoice. And then the other thing too is you'll get pennies per mile is how they're in rate you. So for example, the guy in Texas, I think he was like 30 cents a mile. Another guy was 16 cents a mile. Now I say that it doesn't make sense. They're that close to price. I want to say one was like 80 or 90,000amiles and everyone was, you know, so think about that. I think one, I think that Minnesota sidetrack here, think Minnesota gal was about 80,000 miles and she was 13,000 a year. It was so much cheaper than everybody else that she said she forgot my number and she spent an hour going through and calling everybody she called that day. So yeah, that's kind of what it looks like. It's canal insurance that is the main one doing this right now. If you're a contractor, there are many other options out there. But for truckers, canal is the big player. HDVI is going to be coming around here in six months when they got things figured out, I'm going to have them. But yeah, how do you get a quote through canal? Well, you can call me and call an agent that you like that has canal insurance. Canals through brokerage. So it's not like I'm able to go online and quote them like progressive. It's going to take about four days. I'm going to need the if does. There'll be loss runs. You're going to have to hook up to the ELD or their software to eld, but you're going to have to call an agent to get a pay per mile deal rolling. Same goes for hdbi, even if you wanted them. So really, that's. That's about pay per mile insurance. If you guys have any questions, please feel free to reach out my number, my email, everything is below. I'm Hunter with Nelson Insurance Agency. We're a trucking insurance agent here in Sioux Falls, South Dakota.
