Truckers and Smartphones- Iphone and Android

This is an easy blog for me as I am an avid smartphone enthusiast.  I originally bought the Iphone 3GS and have been hooked ever since.  I am anxiously awaiting the next Iphone 5 to see what new features will arrive to make my life even easier.  The point of this article is to highlight some reasons why all commercial businesses especially commercial truckers need a smartphone.  This a perfect article to have your spouse read!  You need one, it is not a want.  All joking aside there are some serious benefits that can help save you money and get you organized while you are on the road. 

Voice Activated- I am going to start with a safety feature that every trucker should really consider, controlling your phone by voice.  Most new phones have voice dial features that can keep your hands and eyes on the road while you dial, text and answer calls.  I am going to highlight some third party apps in future blogs that will aid you in these features.

Fuel  Saving- There are several apps like, Gas Buddy, Gas Book, and several more that will use your current location and find you the cheapest fuel in your area.  This will help offset the additional cost of the smart phone.

Navigation- You don’t need a dedicated system for navigation any more.  You can use Tom Tom, Garmin, and all major brand navigation systems right from your phone.

Banking- Transfer balances, pay bills, and check balances while you are on the road. This one is pretty easy and has been around a long time with the exception of being able to deposit checks without going to an ATM.  Chase Bank now will let you take a picture of the front and back of the check and submit the check electronically.  That is right you don’t even have to go to an ATM.

Camera- Smartphones have a camera to take pictures in the event of an accident, or video tape a statement from the 16 year old kid who just rear ended your truck while texting.  Document damaged merchandize that is loaded onto your truck, text a photo of a broken part to your mechanic so he can order a part for you, the possibilities are endless.

Music- Let us not forget how important it is to have good music while driving a long day.  Bring all your music with you.  Consider the possibility of audio books while driving.

Credit Cards- Accept credit card payments from clients with not upfront cost and minutes to set up.  Sorry to sound like an infomercial.

Email- Email important information to your insurance agent or your book keeper, this will give you a written copy that you can keep for your records.  I can tell you as an insurance agent my level of service is greatly increased by those clients I am able to email information to on a regular basis.

These are just a few features that can change the way your company does business.  There are many more with access to the internet wherever you are, electronic log books, keeping track of your drivers locations, load finders, DVR live radio so you can get hear the programs you want, controlling your home DVR, watching movies, finding your favorite music, watching your favorite shows on the go, it is no wonder so many truckers today are using smart phones.  I am a personal fan of the Iphone platform but there are plenty of options now, and Android is now a very good platform as well.  Consider the increased efficiency, I don’t think you will be able to live without it after you try it. 

Agency bill vs Direct Bill

The next time you are looking for commercial truck insurance there is another important question to ask your agent when comparing quotes, “Is this policy agency bill or direct bill?”  I will take the time to explain the difference over the next couple of paragraphs.

Although most commercial insurance customers don’t take the time to ask many questions about their policy, this is a question that every consumer should educate themselves about.   Agency bill means that there is another party that gets involved to finance your policy for you.  If you cannot pay for your policy upfront your insurance agent/producer will usually offer you a payment plan, this payment plan is not offered by the insurance company in this case.  It is offered by a small lending institution that is in business to make money, just like the rest of us.  They will often charge you upwards of 20% APR to finance smaller premiums.  This means more money out of your pocket. The actual cost of the financing is usually only displayed to the consumer discreetly. 

There a couple of options that you have first, you can put the premium on a credit card.  Compare your interest rate with that being offered by the finance company.  Second, ask your agent for a better interest rate.  I have only had a few clients ever complain about interest rates, in every case I lowered their APR by 2-5% just because they asked.   All it takes is for your agent to make one call and request a lower rate.  Insurance agencies get rewarded by the finance companies for volume, they make money on the financing as well.  If your agent is diligent about getting you a good rate you should be able to find APR’s between 8-15% depending on the amount financed.  The other reason your insurance agent wants to use an agency bill account is because they make the commission on the sale at the time of the sale.  Much faster than the other alternative, direct bill. 

The best option is to find a Direct Bill insurance policy.  That means to find a policy no matter what type, whether it be boat insurance, RV insurance, commercial auto insurance, commercial trucking insurance that will finance the policy for you.  These companies are usually the big name companies such as Progressive Insurance, Wilshire Insurance, Nationwide etc  they will usually offer you a down payment and let you give them monthly installments with no APR.  Some companies will charge you a small five dollar installment fee, but the direct bill option will keep more money in your pocket. 

When it comes to cancelling your policy you will wish you had a direct bill policy as well.  Direct bill will usually take 5-10 days to get your refund with no additional fees in most cases, whereas agency bill with take much, much longer.  I have seen refunds on an agency bill account take two months to receive a refund.   For more information about this topic please feel free to contact me.  Brent Thunstrom or read more on my website, just Google “covermybigrig.”

Financing Your Insurance Policy

When most insurance agents or brokers give you a quote on your truck insurance they will not include the cost to finance the policy.  They will often give you the total price and the down plus the monthly.  If you add up the cost of all the monthly and the down payment,  your commercial truck insurance  will total more than the annual they gave you.  That is because too often they don't tell you there is an additional cost to finance your policy.

Outside finance companies will often charge 9%-25% APR to finance your truck insurance policy.  ALmost any type of insurance policy can and will be financed, everything from General Liability, Contractors Liability, Business Auto, Truck insurance, Long Haul insurance, Tow Truck Insurance, etc.

Often if you just ask for them to lower the APR they can drop it 2-3%.  Or you can get them to extend the payment from 9 to 10 payments.  If you have good credit some places will even offer you 10% down payment on your insurance.  You must ask, and don't assume that you have to accept what they offer you.  We use several finance companies and all of them have different things to offer.

California DMV 35 Day Cancellation Guidlines

If you are reading this you already know what I am talking about.  You probably just got off the phone with your insurance agent, and you tried to cancel your commercial truck insurance policy with a MCP filing issued to the DMV.  You were informed that you cannot cancel your policy effective today because the California DMV requires that you give them 35 days notice of cancellation before your coverage is cancelled.  Let's talk about a couple different ways you can avoid this cancellation guidline and get back as much of a refund as possible back from your carrier.

1.  The first way is to look at your billing.  Are you current on your payments or are you already behind and has a cancellation notice already been received.  If you are current go straight to step two.  If you are a few days, or a couple weeks late on your insurance payment it may be faster to let your insurance policy cancel for non payment.  Ask your agent how long it will take for your policy to cancel if you dont make any more payments.

2.  Go to http://www.covermybigrig.com/ and go to the "forms" section of the website.  You will find a form called "Request for Voluntary Withdrawal of Motor Carrier Permit."   or you can find the form on the DMV website here: http://dmv.ca.gov/forms/mcp/dmv716mcp.pdf. Fill out that form and send a copy to the DMV and send another copy to your agent and/or your insurance company.  Some will accept a copy of this form as evidence you are cancelling your permit, and others will require a copy of the written response from the DMV with regards to this request.  Either way this will expedite the cancellation process and get you back the biggest refund possible.

Hint: Most insurance agents don't want to tell you about this option because it means they have to give back more commission as your policy will cancel a month sooner.