The last few years have seen significant changes in the commercial auto insurance market. Consequently, insurance carriers have responded by tightening their belts and increasing premiums to address years of losses. The result is a more healthy approach to address market challenges and put the brakes on the upward trend of pricing.
So what can the Insured company do to avoid hefty pricing increases in commercial auto? The broad answer is to change the way in which they manage their fleets, because the carriers are looking for best-in-class accounts with effective risk management, loss prevention technology, and a willingness to buck the upward loss trends that have caused such strife for the insurance industry.
Why has pricing been so dramatically impacted? Autos now feature major pieces of technology, like sensors and autonomous features. These are expensive to repair and to replace. At the same time, road collisions have gone up, culminating in a higher cost of repair.
So, if your Commercial Auto Premiums have risen, even though your claims may have been insignificant, in order to ensure you get the most aggressive pricing from the carriers, best practices need to be implemented, including risk prevention, safety procedures, fleet management protocols, driver selection, and behavior and safety practices that result in fewer accidents, and more.
Your PIASC representative will conduct a thorough review with you and make recommendations as to how to reformulate your internal automobile management programs. When this new approach is in place and fully documented, it will be time to approach the major carriers we represent to discuss rolling back your commercial auto insurance rates.