The ever-rising cost of insurance has been a drag on the trucking industry for more than a decade.
While current trucking industry headlines are dominated by news of skyrocketing gas prices, supply chain shortages and the effects of the ongoing COVID-19 pandemic, the impact of steadily increasing insurance premiums is still being felt by fleets across the country.
The American Transportation Research Institute (ATRI) reports that trucking insurance costs across the board have increased by almost half during the last decade. Per-mile premiums have gone up from an average of 5.9 cents to an average of 8.7 cents.
This insurance increase has fleets of all sizes feeling the fiscal squeeze, as ATRI saw premiums rising across company scales and sectors. Small fleets, however, reported paying more than three times as much as larger fleets, when measured on a per-mile basis. An increase of that size can, and often does, put a small fleet out of business.
Unfortunately, drivers and fleet employees are also paying a price for the cost increases. A recent survey conducted by ATRI found that one-third of trucking company respondents reported cutting employee wages or bonuses due to rising insurance costs. The survey also revealed that 22 percent of companies surveyed cut investments in on-board equipment and technology—which puts drivers at higher risk on the road.
What’s driving this business-threatening jump – and how can your fleet offset some of your insurance costs to make sure your trucks stay on the road?
The severity and frequency of truck-involved accidents have increased during the same time span as the rise in insurance costs, as has the rate of litigation and financial settlements. In response to the dual crises of more dangerous roads and higher insurance premiums, fleets have begun to see the value of dynamically priced coverage.
HDVI Shift™ is the first fleet insurance product offering dynamic pricing, which financially rewards fleets for safer driving and reduces the cost of monthly premiums within the term of the policy. Simply put: the safer your fleet drives, the lower your monthly premiums.
HDVI not only offers monthly safety discounts but supports overall fleet operations with a driver rewards program and personal Fleet Services reps to help analyze safety and improve scores for bigger discounts.
HDVI will also reimburse you for installing dashcams in your trucks, if you haven’t already. That’s because we use your fleet’s own dashcam footage and real-time telematics data to determine the cost of your actual risk. Our Fleet Services team also supports your overall fleet operations with a driver rewards program and personal representatives to help analyze your drivers’ safety performance and improve scores for bigger discounts.