7 Strategies to Help Clients Lower Their Commercial Auto Insurance Premiums

In today’s evolving commercial auto landscape, helping your clients control insurance costs isn’t just a value-add—it’s essential. While rates have increased across many sectors due to factors like inflation, rising repair costs, and litigation trends, businesses still have several ways to manage and even reduce their premiums.

Here’s how you can help your clients take a proactive, modern approach to lowering their commercial auto insurance rates in 2025.

1. Understand What Drives Rates—and What Can Be Controlled

While rates are influenced by larger market forces, your clients can still control key drivers of their premiums:

• Claims history

• Driver safety records

• Vehicle type, usage, and maintenance

• Deductible levels

• Geographic risk exposure

Helping them understand where they can take action puts them in the driver’s seat when it comes to premium control.

2. Rethink Vehicle Choices and Fleet Use

Vehicle selection and usage still heavily impact premiums—but now more than ever, underwriters are paying close attention to how technology and maintenance intersect with safety.

What matters today:

• Vehicle type and value – Newer, high-value vehicles come with higher premiums due to repair and parts costs.

• Maintenance practices – Fleets with documented maintenance programs can often secure better rates.

• Technology integration – Vehicles equipped with ADAS (Advanced Driver Assistance Systems), telematics, dash cams, and GPS tracking can qualify for safety-related premium discounts.

Bonus tip: Encourage clients to choose vehicles based on function and efficiency, not appearance. The flashier the vehicle, the higher the premium—and the more expensive the repairs.

3. Maximize the Use of Driver Monitoring & Training

Modern insurers are increasingly looking at behavioral data and real-time telematics when pricing policies. In fact, some carriers offer usage-based insurance (UBI) options, with discounts tied to driver behavior.

To reduce risk and improve insurability:

• Run MVRs (motor vehicle reports) on every driver at hire—and recheck them annually.

• Avoid drivers with DUIs, reckless driving charges, or repeated violations.

• Use real-time driver monitoring tools like SambaSafety, Verisk’s DrivingDNA, or Geotab to automatically flag risk.

Training still matters.
Encourage clients to deliver driver safety training on a rolling basis. Many insurers now offer digital driver safety courses or incentives for completion. Even occasional drivers should go through onboarding and annual refreshers.

4. Use Fleet Tech for More Than Tracking

Telematics used to be a “nice-to-have.” In 2025, it’s a necessity—both for operational efficiency and safety.

Help your clients explore:

• In-cab dash cams to verify accident details

• Speed and harsh driving alerts to reinforce safe habits

• AI-powered coaching systems to automatically give feedback to drivers

Studies show telematics reduces crash frequency and severity by up to 40%—and that directly translates to fewer claims and better renewal pricing.

5. Reward Safe Driving with Incentives

While monitoring is the stick, rewards are the carrot. Help clients create a program to recognize and reward safe drivers.

Ideas include:

• Monthly bonuses for drivers with clean telematics reports

• Annual recognition or prizes for zero-incident drivers

• Sharing a portion of insurance savings with the team

A safety-focused culture improves both morale and bottom lines.

6. Adjust Deductibles and Coverage Based on Fleet Value

Many businesses continue to over-insure aging vehicles. Your clients should review their coverage levels annually to find the right balance between protection and premium.

To consider:

• Raising deductibles – A higher deductible (like $2,500–$5,000) can lower premiums and keep small claims off the books.

• Dropping collision/comprehensive on older vehicles – If a truck is worth less than the premium cost, it may not be worth insuring for physical damage.

Help clients reallocate savings from reduced coverage toward higher liability limits or umbrella policies—which offer greater long-term protection.

7. Track Loss History—and Take Action Early

Loss history still plays a huge role in underwriting. Even small, frequent claims can trigger increased rates or non-renewal. Encourage your clients to:

• Review loss runs quarterly, not just at renewal

This blog was originally published on www.arrowheadgrp.com and has since been repurposed for relevance.