Insurance Scams on starting Authority ?

It isn't a scam, commercial auto insurance has been going up steady every year for several years. The insurance companies are pulling away from the market leaving fewer companies willing to take on trucking insurance.

Combine this with losses at most insurance companies and they will raise the rates even without any claims.

Here is a link to a 2018 article in the Insurance Journal Magazine that is still relevant today.
Still an Uphill Climb for Commercial Auto Market

 

Like Brian said, most insurance companies don't want any part of the commercial market anymore.

Progressive pretty much dominates it now (read only game in town) and hence can set whatever rates they want. Meanwhile, megas are self-insured.

What needs to be done is a cap limit on the lawsuit $$$ payouts. With many of these payouts in the millions, would you as an insurance company want the risk?

The best one can do is keep your nose clean, no claims, no accidents, tickets, or OOS violations. Also, keep turning down cheap freight rates. A tough row to hoe, but that's where we are today....

 

I just changed companies again for my truck, for the same reason.
It's like riding one escalator, and jumping off, just to get on another.
I ended up bundling my home with all my (auto) policies to get a better rate.

I'm in salvage auctions and junkyards constantly, and see it from their side, too.
There are a lot of boneheads out there smashing up their, and other peoples crap, daily.
Walk around a Copart auction sometime.
It's an education in itself.

 

I can understand a couple million dollar payout, hospitals ain't cheap and living with pain the rest of your life isn't fun. What chases insurance companies out is when you have a 2 million dollar policy and they're forced to pay out more on it, that and ridiculous 90 million dollar settlements.

 

No. The rates are still high and predicted to inceease again for 2020. I don't expect insurance costs to go down or even level out any time soon. Some segments of trucking, car haul for one example, are seeing it become hard to even get a renewal at any price.

 

No, what needs to happen is strict liability reform. Currently, any infraction no matter how small, triggers strict liability. All these logging requirements, inspection requirements, etc. are designed to give tort lawyers as many chances as possible to discover a trivial infraction. Once that happens who's at fault in the accident no longer matters and only damages are considered.

 

Eventually, small carriers will all be extinct.I couldnt afford to have full coverage on my truck and trailer.1 million Auto liab and I am paying $7400 a year with an equipment that I valued at only $6k and $6k.Its been 10yrs and 1 small claim and I am out of business.This is why I have my second truck sitting for yrs, because of claims from a drivers fault.If I had to pay $1600 a month , I would go lease on.The margins in being independent is way too small.My rad.Not to go off tangent , but my rad is leaking.Never done it before, but I will be broke if I had a shop charge me $1200, so I looked on youtube and undid that 400ibs rad myself with the help of a friend in carrying it out.The margins are small to be dealing with some high insurance rates.

 

My premiums dropped about 20% from my first year of authority to my second year with the same company. Don't be afraid to shop your insurance around every year. There are no discounts for being a long term customer, those days are gone. Determine what limits of coverage you need and shop those same limits around every year. You will probably save a considerable amount of money.

Rates are so high for a couple of reasons. There are just enough bad commercial drivers out there to make this a very high risk profession and expensive for insurance carriers, and lawyers know that most juries will rule against a trucking company in an accident, regardless of who's fault the accident was. Every time I see a billboard along a highway from a law firm looking for clients involved in an accident with a truck, I get angry.