Why Is Commercial Auto Insurance So Expensive? (& What You Can Do)

✅ Get a quote today: https://bryangutowsky.carrd.co/
📞 Call or Text at: 248-459-3045
📧 Email: [email protected]

Why are commercial auto insurance rates so expensive?
Insurance companies have been getting hit with more claims, and those claims are becoming more severe. Repairs cost more because parts are more expensive, and the time it takes to fix vehicles has increased due to supply chain issues and labor shortages. Plus, commercial vehicles tend to see higher repair costs because of their size, weight, or specialized equipment.

Then there are simply more accidents happening. Distracted driving continues to be a major problem, inflation is also having a major impact. Everything from repair costs to medical expenses and legal fees has gone up. This means insurance companies are paying out more, which drives up premiums for businesses.

We’re also in a more litigious environment. What does that mean? It means lawsuits are more common, settlements are higher, and jury awards are bigger. This “social inflation,” as it’s called, drives up the costs that insurance companies pay out—and that, in turn, raises premiums for everyone.

What are some things you can you do about it? While you can’t control the insurance market, there are ways to better manage your costs:
Maintain your vehicles. Regular checks and a maintenance program can reduce the chance of mechanical issues causing accidents.
Screen your drivers. Running MVR (Motor Vehicle Records) reports and putting only safe, responsible drivers behind the wheel is key.
Use telematics and/or fleet management systems. These tools can track driver behavior and promote safer driving.
Consider bundling policies if the insurance company you are working with does offer the option, many insurance companies offer discounts when you bundle commercial auto with other policies like general liability or workers comp. This can help you save while also simplifying your insurance needs.

With all of those steps you can take, the ultimate goal is to try to prevent claims from happening in the first place. Your claims history plays a huge role in determining your rates. A clean or improving claims record not only helps keep costs down but also shows underwriters that your business is serious about managing risk.

As frustrating as rising premiums can be, insurance plays a critical role when accidents happen. You want to make sure you are working with a company that has strong claims handling, solid customer service, and the financial stability to pay out when you need it most.

Need help with your insurance? Have questions?
✅ Get a quote today: https://bryangutowsky.carrd.co/
📞 Call or Text: 248-459-3045
📧 Email: [email protected]

I look forward to working with you!

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Timecodes
0:00 - Intro
1:03 - Number of accidents & claims have increased, and more expensive
1:49 - Inflation is also impacting the cost of claims
2:02 - Lawsuits are more common, settlements and judgements are higher, known as social inflation
2:33 - Ways to reduce your costs, vehicle maintenance program
3:03 - Screen your drivers & utilize telematics
3:38 - Bundle commercial auto insurance with other policies
4:07 - Claims prevention & reduction is key
4:28 - Summary & closing

**DISCLAIMER: THIS IS NOT LEGAL ADVICE. USE AT YOUR OWN DISCRETION. THIS VIDEO INCLUDES MICHIGAN INFORMATION ONLY.