Q&A

Your guide to surviving soaring insurance premiums

A trucking insurance veteran shares hard-won advice to keep coverage broad and costs competitive

(Courtesy Bradly Allen)

Rising insurance premiums have become one of the biggest pain points for trucking operators—particularly small- and mid-sized fleets that already face razor-thin margins. With repair costs, cargo claims and nuclear verdicts driving rates higher year after year, many owners are asking the same question: how can we protect our business without breaking the bank?

To dig into what’s behind these surging costs—and what practical steps fleet leaders can take to keep coverage broad and premiums competitive—we turned to Bradly Allen, unit leader at World Insurance Associates. For more than 26 years, he has specialized in transportation insurance, helping fleets of all sizes navigate a challenging market.

-Written by Shefali Kapadia, edited by Bianca Prieto

How have rising insurance premiums impacted small- and medium-sized fleets, in particular?

Insurance companies specializing in trucking have struggled the last decade due to poor claim experience. Consequently, we have seen premium increases every year from each truck insurance company for the last 10+ years. We expect premiums to continue to increase for all insurers that specialize in trucking. Commercial auto insurance has experienced a combined loss ratio less than 100% only once in the past 13 years. Loss results for insurance companies that specialize in trucking are worse than for the entire commercial auto market. The cost to repair or replace a tractor or trailer has increased, the cost to repair an automobile has increased, the cost to replace damaged cargo has increased and the cost to litigate and settle lawsuits has increased. Jury awards have skyrocketed with verdicts over $1 million increasing nearly 1,000% from 2010 to 2024, rising from an average of $2.3 million to $22 million.

What can trucking execs do to stay protected in the current environment without breaking the bank?

Here are some things that you can do to help obtain the broadest insurance coverage and competitive premiums:

Install a forward-facing dash camera in your tractor and inform your insurance. Some insurance companies are offering premium discounts if you have a forward-facing camera.
Make good driver decisions. Check their driving record (MVR). Get a Pre-Employment Screening Program (PSP) report that lists the driver’s DOT violations for the last five years.
Do not chase the cheapest insurance premium. Truckers that change insurance companies every year or two in search of the “cheapest” premium, usually end up with “cheap” insurance.
Understand how DOT violations affect your Safety Measurement Systems (SMS) score and take steps to improve your score. The SMS scores are reviewed by all transportation insurance providers.
Deal with an insurance agent that specializes in trucking insurance.

Can small fleets leverage a solid safety record to negotiate lower insurance rates or better terms, and how so?

Every insurance company is looking at the trucking company’s safety scores. It could be the difference between getting a quote or getting declined. Obtaining insurance through a reputable insurance company is not a negotiation but a partnership.

What's your No. 1 piece of advice for small business trucking owners to choose the right insurance coverage?

Purchasing adequate insurance is one of the most important business decisions made by a trucking company. It can be the difference between staying in business after an accident and being forced to close. Choose your partners carefully and understand what you are buying. Deal with an insurance agent who specializes in trucking insurance and has the TRS (Transportation Risk Specialist) designation.