East El Paso  |  West El Paso ☰ ˟
Logo
East El Paso Office  |  West El Paso Office
  • Nothing
  • Products
    • Automobile
    • Bonds
    • Business & Commercial
    • Commercial Auto Insurance
    • Cyber Liability Insurance
    • Farm
    • Homeowners
    • Personal Umbrella Insurance
    • Workers Compensation
  • Get A Quote
    • Auto Insurance Quote
    • Bond QuotesImage of right arrow
      • Bid Bonds
      • Commercial Bonds
      • Contract Bonds
      • Contractor License Bonds
      • Court Bonds
      • Fidelity Bonds
      • Payment Bonds
      • Performance Bonds
    • Business QuotesImage of right arrow
      • Business Auto
      • Business Income
      • Business Owners (BOP) Quote Form
      • Business Property
      • Contractor Insurance
      • Equipment Breakdown
      • General Liability Quote Form
      • Real Estate Errors and Omissions
      • Workers Compensation Quote
    • Farm Quote
    • Flood Quote
    • Health Insurance Quote
    • Homeowners Insurance Quote
    • Life Insurance Quote
    • Motorcycle Insurance Quote
    • Recreational Vehicle Insurance Quote
    • Renters Insurance Quote
    • Watercraft Insurance Quote
  • Resources
    • About UsImage of right arrow
      • Meet Our Team
      • Our Locations
      • Local Businesses We Love
      • Nationwide Coverage
    • Blog
    • Secure Area
    • Refer a Friend
    • Important Links
    • Insurance Glossary
    • Get Your Nationwide© Coverage from Crossland Coverage
  • Contact Us
    • East El Paso Office
    • West El Paso Office
    • Locations & Hours
    • Get A Quote
Automobile Icon

Automobile

We browse through a wide variety of coverages and find the right one for you.

Learn More
Homeowners Icon

Homeowners

We browse through a wide variety of coverages and find the right one for you.

Learn More
Business Icon

Business

We browse through a wide variety of coverages and find the right one for you.

Learn More
Farm Insurance Icon

Farm Insurance

We browse through a wide variety of coverages and find the right one for you.

Learn More
Home > Blog > Factors Increasing Commercial Auto Insurance Rates
MONDAY, MAY 24, 2021

Factors Increasing Commercial Auto Insurance Rates

Whether they’re transporting materials and tools to worksites, hauling goods for deliveries or driving to meet clients—companies of all kinds rely on safe and functioning vehicles to serve customers and generate profit. As such, Yellow Cars has become invaluable for any business that operates vehicles as part of their operations. 

However, exposures related to commercial auto insurance are vast, and a number of industry changes, as well as the frequency and severity of claims, have had a significant impact on carriers in the space. In fact, many carriers are finding it difficult to maintain profitability for commercial auto insurance and, in turn, are passing the uptick in cost along to insureds. 

It’s not uncommon for businesses to see year-over-year rate increases even when they hire safe drivers and have a clean loss record. But, the truth is that claims history is just one piece of the puzzle, and a number of high-level trends affect commercial auto insurance rates.  

Distracted Driving Incidents 

While many factors can lead to a crash (e.g., impaired driving, poor road conditions and adverse weather), distracted driving is one of the most common causes of accidents. As these incidents have become more common, insurance rates have climbed in tandem, creating a risk management challenge for insureds and a profitability challenge for insurance carriers that sell commercial auto insurance. 

Data from the National Highway Traffic Safety Administration indicates that every year, up to 391,000 people are injured and 3,450 people are killed in crashes involving distracted drivers. Distracted driving reduces awareness, decision-making and performance—increasing the likelihood of driver error, near-crashes or crashes. 

Distracted driving is an ongoing safety concern for organizations that use vehicles as part of their operations—a concern that continues to impact the cost of coverage for businesses across the board. 

Accident Costs 

The overall cost associated with vehicle collisions has climbed significantly in recent years. While the financial impact of individual accidents can vary based on the severity of a collision, steep medical and repair costs continue to drive up the cost of claims overall. 

Increasing Medical Costs 

In general, medical costs have been rising steadily over the past number of years. In fact, losses for bodily injury liability insurance claims increased 10% over a five-year period alone. These increased costs have affected multiple lines of insurance, including commercial auto insurance. 

Following an accident, injuries for all of those involved can vary in severity. It’s not uncommon for the injuries of those involved in an accident to require multiple doctor visits or even surgery, which can extend recovery time and influence the cost of claims. 

Increasing Vehicle Repair Costs 

Technological advancements have made vehicles safer and more efficient. However, as commercial vehicles are outfitted with a variety of sophisticated components (e.g., backup cameras and blind-spot cameras) they are becoming increasingly expensive to repair. 

According to a report from AAA, vehicles equipped with driver assistance systems often cost twice as much to repair as those that aren’t. As such, losses associated with a collision are much more substantial, leading to rate increases and creating numerous challenges for insurers. 

Securing Affordable Coverage 

While it can feel like the factors influencing the cost of coverage are out of a business’s control, there are things policyholders can do to secure better rates. 

Organizations should have a strong understanding of their exposures and regularly examine the root causes of collisions and similar commercial auto concerns. Additionally, businesses should seek the help of a qualified insurance broker with a deep understanding of their operations and effective risk management strategies.

 

Posted 2:34 PM

Tags: commercial auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2021
  • 2020

  • auto insurance(4)
  • medicare(3)
  • home insurance(2)
  • car insurance(2)
  • commercial(1)
  • remodeling home(1)
  • surety bonds(1)
  • whole life insurance(1)
  • life insurance(1)
  • toy vehicle insurance(1)
  • general contractors(1)
  • open enrollment(1)
  • term life insurance(1)
  • workers compensation insurance(1)
  • motorcycle insurance(1)
  • bop insurance(1)
  • business(1)
  • interruption(1)
  • homeowners insurance(1)
  • general liability(1)
  • commercial auto insurance(1)
  • flood insurance(1)
  • insurance(1)
  • general liability insurance(1)

View Mobile Version

Contact Us Today!
East El Paso Office 915.629.0274
West El Paso Office 915.584.5480

Facebook Icon LinkedIn Icon Google Icon

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • News
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

1590 Joe Battle Boulevard
El Paso, TX 79936

East El Paso Office 915.629.0274  | West El Paso Office 915.584.5480
Fax: 915-629-0350 | Email Us
© Copyright. All rights reserved. | Powered by Insurance Website Builder