Rising truck fleet insurance rates are making it harder for some truck fleets to manage costs and operations. This article explains why fleet insurance costs are rising and shares tips to lower expenses. Whether you want to ease financial strain or make smarter fleet decisions, you’re in the right place.
Trucking insurance costs surged 40% over last decade
According to the American Transportation Research Institute (ATRI) Operational Costs of Trucking 2024 Report, truck insurance premiums rose 12.5% in a year and 40% over the past decade.
What are the key factors driving increased trucking fleet insurance rates?
ATRI says that potential drivers of truck insurance premium increases include:
Rising litigation costs.
More expensive equipment.
Inflation.
Fleet surge during 2021-2022 freight boom.
Nuclear verdicts
Most notable are so-called nuclear verdicts and the litigation awards tied to them. A nuclear verdict is defined as a jury award exceeding $10 million. The U.S. Chamber of Commerce Institute for Legal Reform reports that, across the United States:
From 2010 – 2019, the number of reported nuclear verdicts increased by 33%.
The median verdict has increased 28% to nearly $25M.
About one in four auto accident trials that resulted in a verdict of $10M or more involved a trucking company.
With rising nuclear verdicts and award trends, insurers are tightening their policies. They're becoming more selective about who they insure, increasing insurance rates, and lowering coverage limits for some fleets. As a result, more trucking companies are using layered insurance plans known as "towers". Maintaining these "towers" requires more money, time and resources.
4 strategies to address rising fleet insurance costs
Rising costs and evolving fleet management can feel overwhelming and out of your control. Luckily there are fleet management strategies you can control. Here are 4 ways to advance your fleet to help ease the costs of your business:
Safety-first culture
A safety-first culture can help reduce the risk of accidents and injuries – both on and off the road. Following safety regulations, rewarding safe behavior and joining groups like the National Safety Council boosts safety and positive results.
Safety starts with clear policies set by leadership. A safety-first culture relies on leading by example through safety processes, compliance with regulations and open communication.
Driver training and recognition
By teaching and reinforcing safe operations for all assocites, a fleet can drive a multi-pronged approach to training. This can be done by thoroughly preparing new drivers and recertifying experienced drivers.
Recognize drivers and other associates for their safety actions that exemplify excellence. Safe driving awards and other recognitions can motivate associates to practice safety.
Equipment and safety technology
Trucking technology has come a long way and the rate and pace of new truck safety technology is accelerating. Investing in modern equipment and safety technology can improve safety and protect associates.
Some fleets seek to replace trucks every 5-7 years in an effort to enhance fleet truck safety technology. Examples of technologies to prevent accidents include:
Communication devices for safe route planning.
Collision mitigation sensors.
Flashing amber lights.
Telematics.
Fleet maintenance
Regular truck and trailer maintenance reduces risk of breakdowns and accidents. Fewer casualties mean fewer claims and lower perceived risk by insurers.
Schedule preventative and predicative maintenance to prevent issues before they can occur. Train drivers to inspect and report issues to avoid major repairs. Some items to check during inspection include:
Brake systems.
Fluids such as oil, coolant, transmission fluid.
Air filters.
Battery and electrical systems.
Tires.
Outsource with a dedicated carrier to lower costs
Outsourcing your fleet to a dedicated carrier offers a solution beyond traditional strategies. Many companies try cost-saving methods, but management challenges and nuclear verdict risks can quickly outweigh the benefits. Some businesses use trusted carriers instead of managing fleets in-house. This approach helps companies focus on strengths while saving costs across their supply chain.
Let a dedicated carrier handle the complexities of fleet management. Understand the benefits to your fleet operations when you outsource with a carrier like Schneider.
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