Understanding the Commercial Auto Market
If you’ve renewed your commercial auto policy recently, you may have noticed a rate increase. Arizona businesses are seeing higher premiums due to several converging factors.
The Drivers of Cost
- Nuclear Verdicts: Lawsuits resulting in payouts over $10 million are becoming more common, driving up liability costs for insurers.
- Repair Costs: Modern trucks are equipped with sensors and cameras. A minor fender bender that used to cost $500 now costs $3,000 to repair and recalibrate.
- Driver Shortage: The pressure to hire drivers quickly can lead to less experienced operators on the road.
How to Fight Back
Invest in dash cams, telematics, and strict driver vetting. Proof of a strong safety culture is your best bargaining chip at renewal time.