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Managing risks in today's commercial car insurance market



 Risks for commercial car insurance In the face of insurance losses, the commercial car insurance sector continues to raise prices.

MarketScout reports that prices for commercial car insurance increased by 9% during the third quarter of 2021, while 117 coverage increased. %. Composite pricing for commercial insurance increased by 6.8%.

According to Business Insurance, premium pricing has been increasing for several years now – a trend that fleet managers have no doubt noticed. Still, A.M. Best & Co. says that these premium increases have not been sufficient to compensate for insurance losses.

Increased crash rate

significant increase compared to the low level that occurred about a decade earlier: in 2009 there were 3,147 deaths. The National Safety Council says that 5,005 large trucks were involved in fatal accidents in 2019, an increase of 2% compared to 2018 and an increase of 43% compared to 2010.

Then came 2020 and the pandemic. Roadblocks reduced traffic, but there were many reports of reckless driving. The severity of the crash seems to have increased as a result. Estimates from NHTSA indicated that approximately 38,680 people died in motor vehicle accidents, an increase of 7.2% compared to 2019. During the first half of 2021, NHTSA estimates that 20,160 people died in motor vehicle accidents, an increase of 18.4% compared to 2020 figures.

Skyrocketing Jury Awards

A jury in Florida recently handed down a $ 1 billion verdict on a crash that occurred in 2017, according to FreightWaves. Although this ruling seems to have set a new record, it is part of a trend of rising jury prices. According to CNBC, the American Transportation Research Institute looked at sentences of $ 1 million or more and found that the average sentence increased by 1,000% between 2010 and 2018.

Fleet Owner says that nuclear judgments – often defined as jury prizes of at least $ 10 million – increase insurance premiums and force some car companies to close.

Expensive repairs

Even when deaths and serious injuries are not involved, repairs become more expensive. According to CNET, new technology is largely to blame. Research from AAA shows that even repairing a bumper can cost thousands of dollars when sensors need to be replaced.

In recent times, problems with inflation and the supply chain have increased repair costs. In one example, Repairer Driven News explains that paint companies are experiencing unparalleled rising material costs, and this could result in more price increases in the future.

Managing Your Fleet & # 39; s Risks

, so risk management is more important. By managing your risks, you can prevent losses, reduce liability and make your business more attractive to insurers.

  • Keep vehicles well maintained. Maintenance issues can contribute to crashes and increase exposure to liability.
  • Develop and apply policies that prioritize safe driving. Drivers should always be alert and focused on the road.
  • Invest in telematics technology to keep drivers safe on the road. New systems can monitor drivers for dangerous habits and suggest corrections before a crash.
  • Pay attention to the weather. Icy roads and storms can contribute to unsafe driving conditions.
  • Document your safety efforts. Good documentation can help you double check that no safety issues go unnoticed. Documentation can also be helpful in the event of a crash.

Do you need help with commercial car insurance?

For guidance, insurance coverage and broad market access, contact the commercial insurance team at BNC Insurance.


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