Filing a claim after an accident usually leads to an increase in the cost of commercial auto insurance. However, you may observe an increase in your commercial auto insurance rates even if there hasn’t been any accident and you have followed safe driving rules. This increase may affect you more if you have several vehicles as part of your business operations.
If you have been wondering about the factors that have led to the hike in the cost of your commercial auto insurance coverage, this blog will provide the answers. You may be surprised to learn about these factors as you may have yet to expect them to cause an impact on your insurance rates.
As a cost-cutting measure, you may continue your operations with your existing vehicles instead of investing in new vehicles for your business. However, when your business expands, and the demand for your products and services grows, your drivers use identical vehicles repeatedly for work-related trips, increasing the mileage clocked by each vehicle. You may not expect the increased mileage to raise the cost of commercial auto insurance, but it does!
Insurance providers consider Experienced drivers low-risk compared to drivers with less time behind the wheel. However, according to transportation business experts, there need to be more trained drivers with adequate experience across the country. So, suppose you have recently hired drivers with little or no experience due to your efforts of looking for experienced drivers being unproductive. In that case, your insurers may see an increase in the risk factor, and you may face a rise in the cost of commercial auto insurance for your vehicles.
A lower fuel rate means more people can afford to buy gas for their vehicles which translate to more vehicles on the roads. The number of accidents increases in such a scenario resulting in more auto insurance claims. If the fuel rates stay steadily low for some time, it may be reflected in an increase in the cost of commercial auto insurance.
With several distractions available for drivers on their vehicle’s dashboard, such as the radio, GPS, Bluetooth, and internet search functions, the chances of getting into an accident have increased. Also, with the introduction of newer vehicles equipped with advanced safety systems, drivers tend to lose focus as their dependence on these systems has increased. So, safety features can indirectly raise auto insurance costs.
The increasing involvement of attorneys in auto-related lawsuits and their aim to get more as settlement is another factor for increasing auto insurance rates.
Accident victims need more money than before to pay medical bills. This has led to higher settlements in lawsuits. The insurance providers increase the cost of commercial auto insurance to compensate for their increased expenditure.
For more details on the commercial truck insurance coverages we offer, contact us today. Our team at GrayStone Insurance Group has the experience and expertise to help you find the right coverage for your business vehicles.
