{"id":2199,"date":"2022-10-26T11:39:45","date_gmt":"2022-10-26T16:39:45","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=2199"},"modified":"2022-10-26T14:31:30","modified_gmt":"2022-10-26T19:31:30","slug":"trucking-insurance-market-overview","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/trucking-insurance-market-overview\/","title":{"rendered":"Trucking Insurance Market Overview"},"content":{"rendered":"

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Property & Casualty<\/p>\n

\n Trucking Insurance Market Overview\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Trucking Insurance Market Overview\n <\/h1>\n\t\n <\/div>[vc_column_text]Since 2020, rates in the trucking insurance marketplace have been widely varied due to outside factors. Inflation, nuclear verdicts, increased technology, and the lack of available drivers continues to drive costs. Rates for long-haul trucking for positive accounts, such as those with no Central Analysis Bureau (CAB) alerts, good loss history and sound drivers, can be as low as $6,000 per unit. Poor accounts or new ventures that want high growth can top $30,000 per unit for a combined $1M single limit depending on the state.\u202f<\/span>\u00a0<\/span><\/p>\n

A lack of Commercial Driver\u2019s License (CDL) experience can also drive higher rates. It is estimated that 80,000 driver positions need to be filled to meet the current market demand, growing to 130,000 by 2030. Because of this, trucking companies have tried to fill these gaps by hiring drivers with less than the required two-year minimum of CDL experience. While some insurance carriers allow this, they tend to charge a higher rate for those drivers.\u202f<\/span>\u00a0<\/span><\/p>\n

For renewals, rates can vary from flat to 9% increases, and physical damage is no longer as profitable as in past years. AM Best anticipates the commercial auto-loss ratio to reach 103% in 2022. This would mean that for every dollar an insurance company collects, they are paying $1.03 in claims. As inflation continues to rise, this could further impact rates as insurers leave the trucking space and re-insurers are hit with losses for all other lines of coverage.<\/span>\u00a0<\/span><\/p>\n