Whether you are transporting tools to a worksite or delivering food to customers – companies of all kinds rely on safe and functioning vehicles to serve their customers. If you are using a vehicle for your business, commercial auto insurance is a must! However, there are several factors that are increasing commercial auto insurance rates.
Distracted Driving: Distracted driving is the most common cause of accidents. With the increase in distracted driving, insurance rates have climbed. This creates a risk management challenge for the insured and a profitability challenge for the insurance carriers.
Accident Costs: The overall cost of an accident has increased significantly over the last few years. High medical costs and repair costs continue to drive up the cost of claims.
Driver Shortage: According to the American Trucking Association, about 160,000 commercial driving positions will go unfilled in the next decade. This forces businesses to hire drivers for these positions who are often inexperienced. The more inexperienced a driver is the more likely they will get into an accident, making them more costly to insure.
Vehicles on the Road: There are more drivers on the road than ever before. In addition, industry demand is on the rise and the drivers are logging extra hours to make deliveries. Together this means a higher number of drivers on the road for longer periods of time, increasing the likelihood of an accident.
While many of these factors may seem like it is out of your control as a business owner, there are some things you can do to secure better rates. Ensure you understand your exposures and regularly examine the root causes of accidents.