6 Factors Impacting The Cost Of Commercial Auto Insurance
The cost of commercial auto insurance keeps going up.
There are a variety of trends that contribute to the rise of commercial auto insurance rates, (most notably a wide-spread 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…
According to some of the top commercial auto insurance carriers 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 that can result in an accident.
3) Experience Driver Shortage
A shortage of experience commercial drivers has caused employers to hire people with less experience. New drivers are more likely to get into accidents.
4) Increased Litigation Costs
Lawyers are getting involved in more and more auto claims. This litigation drives the cost of claims up. What’s more, 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 Take Away
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, there are three factors that 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 process and procedure around these three factors you can take back some control over the cost of commercial auto insurance.
If we aren’t your insurance professional, we should be!
- You can call or text us at 801.798.7461
I look forward to introducing you to a new way of viewing your insurance program.