Key risks and how to avoid them
By Sarb Gill
Insurance costs for commercial trucking and transportation coverage have seen significant spikes, with premiums up by more than 8% in 2025 and predicted to continue to rise, according to the Council of Insurance Agents & Brokers. A variety of factors has led to these spikes, including nuclear verdicts and driver shortages, which have led to capacity challenges as well as increased and, in many cases, more high-severity claims, respectively.
These challenges have driven insurers to enforce stricter underwriting guidelines, making it difficult for commercial trucking companies to secure affordable, comprehensive coverage.
How can independent agents address these challenges and support trucking business owners? A good independent agent who knows the fleet industry will work with their policyholders to help them understand leading risks impacting the industry, best safety practices to navigate these risks and, in turn, how the business owner might take steps to impact their business’s insurability and costs.
Common risks driving increased rates
One of the most prominent risks leading to increased rates for transportation companies and fleet managers is the ongoing shortage of drivers. This lack of drivers, coupled with continued freight growth, has led industry employers to hire less-experienced drivers who often have higher frequency and severity of losses, increasing their perceived risk and raising premiums.
Another ongoing risk in the industry is the danger of drivers falling asleep behind the wheel or being distracted due to fatigue. Fatigued driving can have severe consequences for fleets, causing significant property damage and, tragically, bodily injury to others. Long travel times and quick turnarounds on deliveries can contribute to driver fatigue and increase the likelihood of accidents, which can impact underwriting and pricing decisions.
Improper or insufficient vehicle maintenance is another common factor that contributes to increased rates. Serious safety threats like brake failure, engine issues or tires wearing out could occur without consistent upkeep. These issues are often amplified by unpredictable weather and unsafe driving practices. For example, speeding in the rain or driving without well-treaded tires in the snow could lead to total loss of control of the vehicle and cargo.
Finally, ignored or inadequate inspections of cargo, as well as how secure it is, ahead of loading and delivery is another risk. Without records to verify safety protocols and proper inspection, insurers may perceive a company as having poor quality control, therefore increasing their risk profile.
Preventing loss and premium spikes
Independent agents can help insureds avoid these common risks and possibly obtain more affordable insurance coverage by drawing their policyholders’ attention to safety. Here are several of the top tips to help commercial auto clients avoid rate increases:
- Thoroughly vet drivers. Hiring well-vetted, experienced drivers is a smart way to lower perceived risk. Agents should advise employers to consider new ways to enhance their driver selection standards and thoroughly screen all potential candidates. Additionally, thoroughly documenting the hiring and onboarding process can improve how insurers view a company’s risk and promote more favorable premiums.
When onboarding less-experi-enced drivers, employers can implement mentorship programs where newer drivers are paired with more seasoned drivers for their first few weeks to learn best practices and help cut down on avoidable mistakes. Employers can also require regular road tests to check performance and assign new drivers to simpler or shorter routes until they gain more experience.
Keeping records of everything from hiring procedures to training sessions and initial reviews shows underwriters that the employer has implemented a comprehensive process for hiring and that all employees are well vetted.
- Invest in technology. Technological advancements have provided many new tools to enhance the safety of drivers. Not only can they help to improve a company’s driver safety culture, dash cams and telematics also provide insights that can be shared with insurers to demonstrate safe driving practices. Electronic logging devices (ELDs) are another tool to monitor driver behavior and reduce fatigue-related risks.
Business owners who use these tools to improve safety may be rewarded with lower premiums, so agents should encourage insureds to transparently share telematics insights with insurers. In fact, fleets that choose not to share this information with carriers may see higher premiums.
- Consistent and proactive maintenance. Regular vehicle maintenance is a simple way to reduce the chance of mechanical mishaps and accidents. Agents should encourage commercial auto clients to keep a thorough record of all vehicle maintenance to validate the safety of their fleets. This reduces the likelihood of vehicle failures and demonstrates that the insured is proactive and diligent in maintaining their equipment.
When onboarding less-experienced drivers, employers can implement mentorship programs where newer drivers are paired with more seasoned drivers for their first few weeks to learn best practices and help cut down on avoidable mistakes.
- Implement regular safety training. Trucking employers should hold regular safety training meetings with drivers to review company protocols, go over any concerning telematics data, discuss new industry regulations and reward safe driving behavior. Agents should advise employers to hold these meetings at least once per quarter to stay up to date with industry standards and ensure that drivers are well-versed on safety best practices. This is also a valuable way to help drivers improve their performance.
- Maintain consistent communication. Insurance rates and insurability are often impacted by outdated or missing information, or operational changes between or during policy terms. By communicating regularly with the policyholder, agents can help insureds keep information up to date and avoid premium increases or coverage issues at renewals. Consistent communication also allows agents to proactively educate insureds on common risks and pitfalls so that they can be avoided.
As commercial trucking premiums continue to rise, independent agents are positioned to help insureds reduce their risk exposure and maintain favorable coverage.
Being well-versed in the emerging risks facing the industry and proactively communicating them to policyholders allows independent agents to better advise their commercial auto clients and help them move their business forward efficiently, safely and profitably for years to come.
The author
Sarb Gill is the trucking executive manager at All Solutions Insurance Agency, LLC, a full-service agency specializing in commercial auto liability for fleets and transportation-related businesses. He can be reached at
sarb@allsolins.com.
