Truck on the road
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Soaring Insurance Costs

In 2016, insurance rates rose to incredibly high rates for truckers and trucking companies. Insurance policies with annual premiums of $6,000- $7,000 are now running anywhere from $12,000 to $14,000, and some are as high as $20,000. For truckers and trucking companies, these numbers are close to impossible to pay, and are even keeping new drivers off the road.

Why are Premiums so high?

Insurance premiums have risen 10 – 30%, resulting from high legal settlements. Smaller settlements, less than $100,000, have also had an impact on the rising costs of insurance. Though they are lesser amounts, they are often not litigated because they are not worth taking to court, even if the trucking company was not a fault. If you have an accident that must be taken to court, a ProDriver membership gives you a networks of CDL lawyers who work hard to protect you from every type of violation in all 50 states. In the days to come, remember these services offered to you – they could save you from a sticky situation.  

Premiums are soaring high today because of a simple truth: insurance companies are paying more to write trucking insurance than they are making out of it. According to Trucks.com, “for every $100 in commercial auto insurance policy premiums collected, U.S. insurers paid out $110.40.” As trucking insurance continues to become higher risk, insurers don’t want to write policies that are losing them money.

 

Top 15 Writers’ Commercial Auto Combined Ratios chart

Insurers are Leaving the Industry

Since some insurers have been hurt so badly, they are getting out of the business altogether. Many have stopped writing policies for new entrants, including small trucking companies and individual owner/operators. Finding an insurer who is willing to help truckers and trucking companies has become more and more difficult to find.

What Truckers Should Do

In 2017, there are many factors that may attribute to lower insurance rates for truckers across the nation. In order to help this occur, truck drivers must create a culture of safety. Not only to keep the roads safe, but to reduce their trucking insurance rates for the industry as a whole. Safety greatly impacts the cost of insurance premiums, and, therefore, is unavoidable. 

Invest in technology.

In the coming days, insurance rates have the potential to fall, as more technology is leading to safer driving practices. Many of these technologies may help prove when drivers were at fault during collisions, thus lessening financial damages. Though, these technologies may help, there are no sure thing that truck drivers’ full safety records may not still be brought in to legal proceedings. 

Hire experienced drivers – if possible. 

It is simply harder to insure drivers who are younger and have less experience. Experience plays a big role in proving the safety of the driver. If you must hire younger staff to account for staffing shortages, a bigger payout will have to be necessary, but with time comes experience, and eventually, while maintaining a good record, those rates will likely fall.

Get your insurance from a company who specializes in trucking insurance.

Companies who specialize in the trucking industry are aware of changes in the industry, and can help you work your way through these difficult – and costly – times. TVC Insurance is an independent insurance provider – this means we shop your coverage from every single carrier in the nation, making sure you get the best coverage at the best price. Don’t settle for an insurance agent who may bow out because he/she would rather write insurance with lesser risk. Professional trucking insurance providers are your best chance, while insurance rates are so high. TVC Insurance can promise THE BEST COVERAGE at THE BEST RATES out of any company.

Get Covered 

If you are frustrating like most truck owners in the nation, the future is brighter than you think. Check out TVC’s trucking insurance specialties and let us help you.

Posted 11:09 AM

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