The commercial auto insurance segment continues to be challenged by higher loss costs. The Hartford provides information on what’s driving the higher costs and tips to help your business reduce auto losses.
What’s driving higher commercial auto loss costs?
- An increase in the number of miles driven has led to an increase in accidents.
- Both medical costs and vehicle repair costs have steadily increased.
What drives higher premiums?
As driving-related costs increase, so do premiums.
- 6% increase in traffic fatalities since 2015
- 3% increase in miles driven during 2016
- 7% increase in injuries over 2015
- 12% increase in cost of crashes since 2015
Costs of vehicle repairs have increased due to high-tech parts, including windshields with sensors, rear bumpers with sensors, adaptive cruise, and high-tech headlamps.
Increase in high-tech distractions. Safety technology, including rearview cameras, lane departure warning systems and driverless cars, can be very distracting without specific training.
How much do risky behaviors increase the likelihood of crashes?
- 23X texting with driving
- 3X grooming while driving
- 2X eating while driving
Key Tips to Help Your Customers Reduce Auto Losses
- Implement a driver management program to help reduce collisions and increase safety and productivity.
- Evaluate all driving employees by reviewing their driving history and motor vehicle records. Additional steps include a driving test, medical exam and checking prior employment.
- Provide supervision for driving employees to reduce distracted driving incidences, including texting and cellphone usage.
- Perform proper maintenance and inspection of vehicles by utilizing appropriate reports.
- Review loss records and investigations to help prevent future incidents.
Source: The Hartford