Insurance premiums are one of the top five costs for motor carriers, and carriers’ premiums traditionally are the same every month regardless of how many miles they drive. But that doesn’t have to be the case.
Reporting-style insurance is just that: insurance based on what is reported. Premiums are calculated based on actual usage metrics (e.g., mileage or revenue) rather than estimated or static numbers. This ensures that carriers only pay for the coverage they need, which can be cost-effective for businesses with fluctuating activity levels. Carriers are required to submit operational data monthly, quarterly or as specified in the policy. Timely and accurate reporting is critical to maintaining the policy.
