Rising Insurance Rates for Motor Carriers: Understanding Premium Increases and How to Manage Risk

Posted February 28, 2024 Risk Control

Insurance costs for motor carriers have been consistently increasing over the past few years. Facing higher losses and claim payouts, insurance carriers have raised premiums to cover costs. Some carriers have exited the trucking insurance industry altogether, decreasing competition and further increasing costs for business owners. Rising premiums combined with unpredictable freight rates, costly parts and repairs, and higher wages for drivers are threatening many trucking companies’ already thin profit margins. Data from the Federal Motor Carrier Safety Administration (FMCSA) reports that more than 35,000 carriers closed their doors in fiscal year 2023.

There are many factors that affect the calculation of insurance premiums. Litigation trends, claim frequency, and high equipment costs have all contributed to the trucking industry’s escalating insurance rates, but there are strategies that companies can use to help improve their ratings and control their insurance costs. By adopting a holistic approach to risk management and consistently evaluating their practices, trucking companies can positively impact their loss performance records and safety scores, metrics which all factor into the calculation of insurance premiums.

Read more: Whitepaper: Rising Insurance Rates for Motor Carriers

Please note that the information contained in this posting is designed to provide general awareness in regard to the subject matter covered. It is not provided as legal, medical, or tax advice, nor is it intended to address all concerns in your workplace or for public health. No representation is made as to the sufficiency for your specific company’s needs. This post should be reviewed by your legal counsel or tax consultant before use.