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GigSafe Releases Q4 Last- Mile HNOA Survey
GigSafe recently completed its fourth-quarter survey of hired and non-owned auto insurance ( HNOA ) rates . The survey looked at HNOA / Commercial Auto rates as a percentage of driver earnings , and the size of the participating company ’ s driver fleet . Fifteen delivery companies participated using from seven to 345 drivers .
GigSafe founder David Pickerell summarizes the results :
1 ) Rates vary wildly - up to 8x . At first glance , this is quite surprising and might be symptomatic of the final-mile insurance industry ’ s lack of transparency and competitiveness .
About GigSafe
GigSafe is Built to Power Your Growth . David Pickerell started GigSafe after launching Uber in Las Vegas and creating an app used by 200K + delivery drivers . Through this journey , he saw delivery companies struggling with skyrocketing insurance rates and drivers falling out of their onboarding funnels — problems that held them back from real growth . So David built Gig- Safe . From the moment a driver clicks “ Apply ” to when they ’ re on the road taking your jobs , we handle everything in between . For more information , book a time to meet here .
HNOA Rates as a Percentage of Driver Earnings
2 ) Lower rates aren ’ t correlated with a larger number of drivers , and once again this is genuinely surprising . If anything , having more drivers is negatively correlated with higher rates . This is bizarre since your intuition would suggest that larger companies would have more buying power and leverage to access lower rates . But that intuition could be wrong
“ Anecdotally , this is what I ’ ve seen have the biggest impact on where a company ends up on that curve . Just the act of shopping around can keep a provider honest , let alone having a comparable , cheaper policy o ! er in hand ,” Pickerell says .
HNOA Rates vs . Size of Driver Fleet
He summarizes the key takeaways from the Gig- Safe survey this way : “ Final-mile insurance has the telltale signs of an opaque industry with few providers , nonstandard pricing , and high switching costs ( in the form of difficulty obtaining alternative quotes ). We suggest all carriers shop carefully and compare rates .” CLDA
74 customized logistics & delivery Magazine I fall / winter 2024