When insurance rates rise, commercial auto fleets take a huge hit. While typical factors such as increased accidents and risky drivers are easy to predict for a rise in insurance rates, there are other surprising ones that may be unknown by many business owners. In this article, we’re going to explore the macro factors that contribute to an increase in insurance rate spikes. Before reading on, ensure your business is equipped with a comprehensive Commercial Auto Insurance policy.
Driving more miles.
After the recession hit, there was an obvious halt in transportation. However, since the economy has slowly picked back up, companies are relying on their existing crew members to pick up more shifts and cover the miles needed to transports goods. This increases the miles on the vehicles, which makes them more susceptible to wear and tear, damage, and breakdowns.
Less experienced drivers.
Experienced drivers are reaching the age of retirement and there is a shortage of qualified drivers on the road.
Stricter safety standards and less independence might turn off potential new drivers. While an improving economy means transportation companies are hiring, it also means the talent pool likely has options in other types of service jobs, like factory or construction work, explains Chris Hayes, 2nd Vice President of Transportation Risk Control for Travelers.
Drop in fuel prices.
Less expensive gas means more people on the road, which is directly correlated to an increase in accidents each year.
It should come as no surprise to learn that screens have caused a number of distracted driving accidents. A combination of texting, calling, and semi-autonomous driving allows a trucker’s mind to wander.
There are more lawyers involved in smaller cases today, likely because after the recession no one was hiring so they had to work with the cases that were presented to them. These attorneys are trying to find any information possible to prove negligence, increasing claims for insurance companies.
Medical cost increase.
Injuries from auto accidents can run the gamut in terms of severity, but soft tissue injuries in the form of strains and sprains are prevalent. Injuries involving surgery often take longer to heal and require follow-up treatments as well, explains the article. An increase in these accidents has created an increase in premiums, as well.
About Irving Weber Associates
These are five critical facts that every business owner should be aware of. At Irving Weber Associates, Inc.(IWA), we offer the FabriCare Advantage insurance program, which includes Dry Cleaner Insurance, Dry Cleaner Equipment Breakdown coverage, and more. In addition, we offer specialty business insurance products to fully secure your operation. Please contact us today for more information at (855) 764-7406.