If you’ve noticed your commercial auto insurance premiums creeping up, you’re not alone. Across the U.S., businesses are facing higher costs in an already challenging market. But what’s driving these increases? From the type of business you run to industry-wide factors beyond your control, there’s a lot at play.

The good news? You don’t have to navigate this on your own. At Haughn & Associates, we work closely with our clients to not only help them understand what’s behind their rising premiums but also to develop smart strategies to manage costs without sacrificing the coverage they need.

Why Your Premiums Are Rising

Commercial auto insurance premiums are based on several factors, many of which are unique to your business. Some of the most common considerations include:

• Type of Business – A local contractor faces different risks than a long-haul trucking company. Insurers adjust rates based on the nature of your operations.
• Type of Vehicle(s) Used – Commercial vehicles vary in size, use, and risk. Large trucks and specialized equipment often come with higher premiums.
• Driving Records – The driving history of you and your employees matters. Clean records lead to lower rates, while accidents and violations drive up costs.
• Type of Cargo – Transporting hazardous materials or high-value goods increases risk, which means higher premiums.
• Location of Your Business – Companies in urban areas or regions prone to natural disasters often face higher rates due to increased risk.
• Liability Limits – Higher liability coverage offers better protection but can also raise your premium. We’ll help you find the right balance of coverage and cost.

Industry-Wide Challenges Affecting Rates

Beyond business-specific factors, the commercial auto insurance industry is grappling with broader challenges that impact premiums:

• Driver Shortage – With fewer experienced drivers on the road, companies may have to hire less-experienced operators, increasing risk.
• Distracted Driving – This growing issue continues to drive up the frequency and severity of accidents.
• Inflation – Rising costs for vehicle repairs, parts, and medical expenses mean claims are more expensive.
• Nuclear Verdicts – These massive legal settlements are putting pressure on insurers, leading to higher premiums across the board.
• Natural Disasters – Events like floods, wildfires, and severe storms can cause significant damage and large claims.

How We Help Businesses Like Yours

At Haughn & Associates, we take a hands-on approach to commercial auto insurance. We know that each business is unique, and a cookie-cutter solution just doesn’t cut it. Our team of experienced professionals is here to:

• Conduct Comprehensive Policy Reviews – We’ll review your current coverage to identify gaps, overlaps, or areas where you might be overpaying.
• Develop Tailored Solutions – We help you customize a policy that fits your business’s specific needs while staying within your budget.
• Provide Risk Management Support – Insurance is only one piece of the puzzle. We offer guidance on improving driver safety, implementing best practices, and minimizing risk to keep your premiums in check.
• Advocate for You – If you ever face a claim or need to renegotiate coverage, we act as your advocate, ensuring you get fair treatment and the best outcome possible.
• Keep You Informed – The insurance market is always changing. We keep you up to date on industry trends and help you plan for the future.

Looking Ahead

The challenges in the commercial auto insurance market are expected to continue into 2025, with some experts predicting a possible softening in the second half of 2025. While there’s hope for more stability, it’s crucial to stay proactive. Regularly reviewing your coverage and working with an experienced partner can make all the difference.

At Haughn & Associates, we’re committed to helping businesses in Dublin, Ohio, and beyond protect what matters most. Whether you operate a single vehicle or manage a large fleet, we’ll help you navigate the complexities of commercial auto insurance with confidence.

Want to review your policy or explore more cost-effective options? Contact us today. Our team is here to help you find the right coverage at the right price.