The cost of commercial auto insurance keeps going up.
But why?
There are a variety of trends that contribute to the rise of commercial auto insurance rates, (most notably a widespread increase in related losses).
These trends have contributed to a difficult market for buyers of commercial auto policies.
Today we break down the 6 factors impacting the cost of commercial auto insurance and what you can do to keep prices down.
Watch the video below or keep reading to learn them all…
Cost of Commercial Auto Insurance
According to some of the top commercial auto insurance carriers, such as Progressive, these are the top factors impacting rising costs.
1) More Vehicles on the Road
A record number of vehicles on the road means more traffic and congestion, which increases the risk of collisions.
2) Distracted Driving
Today’s drivers face more distractions than ever before. Distracted driving can reduce awareness, decision-making, and performance, resulting in an accident.
3) Experience Driver Shortage
A shortage of experienced commercial drivers has caused employers to hire people with less experience. New drivers are more likely to get into accidents.
4) Increase in Litigation Costs
Lawyers are getting involved in more and more auto claims. This litigation drives the cost of claims up. Moreover, trial verdicts related to motor vehicle crashes can be as much as six figures.
5) Rising Medical Costs
Medical costs continue to rise. As a result, many injuries caused by auto incidents exceed coverage limits.
6) Increased Vehicle Repair Costs
While technological advancements have made vehicles safer and more efficient, they also increase vehicle repair costs.
The good news is that you can reduce the cost of commercial auto insurance. There are some aspects of the factors impacting rates that are out of your direct control, but there are things you can do.
Types of Vehicles Included Under Commercial Auto Insurance
In most cases, commercial auto insurance is required for your work vehicles. Personal auto policies will specifically exclude any work-related activities from coverage.
Here is a list of vehicles commonly covered under a standard commercial auto policy:
- Regular cars and SUVs
- Pickup trucks
- Utility vans
- Bucket trucks
- Catering trucks
- Refrigerator trucks
- Stakebed trucks
- Light and medium-weight dump trucks
- Box trucks
- And more
The Rub
The unfortunate part of the rising cost of commercial auto insurance is that many of the factors impacting price increases are out of your direct control.
However, three factors are in your control:
- Distracted driving,
- Hiring experienced drivers with good driving records and,
- Optimizing the amount of usage for commercially owned vehicles.
By building processes and procedures around these three factors, you can take back some control over the cost of commercial auto insurance.
A good insurance agent helps too.
We would love to be that agent.
If your current insurance professional has never addressed issues like this with you before, I’d encourage you to reach out to us today.
- You can call or text us at 518.960.6600
- Click here to contact us via email.
I look forward to introducing you to a new way of viewing your insurance program.
Thank you,
Ryan Hanley
