Aon Launches Adjustable Rate Motor Carrier Insurance Program
Aon announced the launch of a motor-carrier insurance program that adjusted rates monthly and reduces required down payments, to be offered exclusively through the “mobile-friendly” CarrierHQ online portal.
Aon said it uses data from federally mandated electronic logging devices and its proprietary rating algorithm to provide fleet owners with a driver’s score based on his or her actions behind the wheel. Fleet owners will pay a variable insurance rate per truck based on that score. Those with safe driving actions will receive lower premiums, while risky driving actions will result in higher premiums, the Chicago-based professional services firm said.
Rates are eligible for adjustment each month, giving small fleet owners the ability to directly influence their insurance cost, the second-largest fixed expense for small fleets, Aon said in a press release. Fleets looking to gain additional cash flow flexibility may couple the insurance product with a CarrierHQ Certified Factoring Partner, enabling the fleet to pay monthly insurance installments without any large down payments or costly premium financing.
“In many cases, the upfront premium investment is a major barrier to entry or growth,” said Mark Epperson, executive director, Aon. “By eliminating upfront fees and premium finance charges, we are empowering economic possibility by freeing up capital and improving cash flow, which will allow owners to grow their business.”
The product will be rolled out nationwide and ultimately be available in all states except New York, Alaska, and Hawaii, Aon said.
This article from Claims Journal