Understanding the automobile insurance changes affecting commercial trucking companies.
The world of automobile insurance is wide and varied, just like the diversity of the vehicles on the roads everywhere in the world. Automobile insurance is constantly changing to meet the needs of car owners, automobile companies, and transportation ventures globally. The market rises and falls just as it does in other insurance fields; the trends are often quite different from one year to the next.
When it comes to commercial automobile insurance, recent trends are actually almost the opposite of what they are in the rest of the automobile insurance world. Most car insurance policies are relatively inexpensive and the risk is spread over a large group, thus there are more insurance options made available for automobile owners. However, the relatively small pool of commercial vehicles such as trucks has seen insurance costs rise along with the risks associated with these types of vehicles.
Factors in rising costs
Trucking and other transportation companies in the United States have to conform to local, state, and federal regulations. These companies operate large vehicles with varying amounts and types of cargo, and are often taking this cargo over state lines. Truckers can work long hours with little sleep in order to reach their destination on time, and the risks associated with this kind of driving can boost insurance costs.
The market for commercial trucking companies is hardening while the general automobile insurance market is softening. This is caused by several factors that developed over the past few years and have all come into play to impact the market at the same time. The pool of insurance underwriters dealing with commercial trucking insurance is smaller than that of the mainstream personal automobile industry, and costs have gone up as fewer underwriters are willing to accept the risks these companies pose.
In addition to tired drivers, the vehicles themselves can also boost insurance costs and risks. Large vehicles are dangerous to smaller vehicles on the road, and regulations regarding size and fuel efficiency mean some vehicles are more expensive to repair when they wear out or break down.
The injuries and damages associated with commercial trucking may also raise insurance costs; drivers who have been involved in accidents take longer to recover and their medical bills can be quite expensive.
Keeping costs down
Keeping costs down when it comes to commercial trucking insurance is a task transportation companies and insurance companies are facing. The insurance trends will likely swing in a different direction as the market changes, as it always does. However, there are a few things commercial truckers can do to make sure they are able to obtain affordable insurance in the future.
Transportation companies that have maintained good safety records and safe driving habits will likely be able to renew their auto insurance at reasonable rates. Planning for insurance renewal early can help, as can searching the market for the best auto insurance deals. Installing telematics to track safe driving habits of drivers and the safety of their vehicles in case of a crash may also help bring the costs of insurance down.