Why Trucking Insurance Premiums Are On The Rise

Insurance premiums for trucking have trended upward for several years, often with double-digit increases. But the issue is even more urgent now with pending congressional bills, the pandemic and insurance companies not showing profits.

The pandemic hasn't directly impacted the cost of insurance much, but crashes and fatalities have increased in recent months despite fewer vehicles on the road. COVID-19 has also driven fleets to shift business models — a factor insurance underwriters take note of, in case the changes could add additional risk, according to Jennifer Nuest, transportation marketing coordinator for HUB International Transportation Insurance Services.

When carriers move away from dedicated routes because they lose contracts and are hauling different types of loads, underwriters see that as a higher risk. Drivers may be working in unfamiliar areas or utilizing different equipment. She said underwriters ask for this information when considering new business or renewals.