What’s Driving Higher Commercial Auto Premiums?

white trucks in a row

If you’re a business owner in Florida, it’s certain that you’ve had to have a tough conversation with your insurance advisor about the Commercial Auto rate increases affecting your bottom line.  So what’s behind the rate increases, when will they level off and what can you do to help mitigate a large increase at renewal?

Rate increases are due to a few main factors:

  1. Since 2016 there has been an increase in the average amount of miles driven. Obviously, the more one drives the more risk there is for an accident especially in Florida where the population continues to grow rapidly.
  2. Medical Costs have continued to increase.
  3. Vehicles Cost more to repair. It’s great to have a new vehicle and all the technology it comes with but it costs more to repair bumpers with parking sensors, back up cameras, high tech headlamps and windshields with rain sensors.

Commercial Auto losses are an industry-wide concern. Every carrier that I’ve spoken with has expressed the same concern and pricing increases have followed with no timetable for leveling out. In fact, many carriers have decided not to offer commercial auto coverage without another supporting line of insurance like General Liability or Workers Compensation as a means to offset the predicted auto losses by writing a profitable line of coverage.  Ultimately, this results in fewer carriers offering competitive quotes and therefore fewer options for the buyer.

While all commercial insurance carriers are facing this alarming problem, PGI is here to partner with you to create an understanding of the factors causing increased auto rates AND to provide useful resources that can help you promote driver and vehicle safety.  Here are several programs and services that we help our clients with:

  •                 ® Complete Evaluation on all Driving Employees
  •                 ® Provide Supervision for all drivers
  •                 ® Implement Vehicle Maintenance Program
  •                 ® Complete Through Accident Investigations               

If you’d like a commercial auto quote, please contact us at info@primegroupins.com or 844-631-4901

Mike Dugan is the Vice President of PrimeGroup Insurance and located in their Palm Beach Gardens location. Mike is a Certified Insurance Counselor (CIC) and focuses on New Business Production, Agency Management, Commercial Insurance, Workers’ Compensation and Employee Benefits.