Businesses, particularly smaller operators, may soon find commercial auto coverage unaffordable. (Credit: Bluraz/Adobe Stock)
The commercial auto insurance market has reached a critical tipping point.
Historically, our industry leaned on rate hikes to address the ever-increasing cost of claims, but this strategy is failing to keep pace. Rates continue to rise — anywhere from 3% to 8% for companies with clean claims histories, and up to 25% for those with riskier profiles. But no matter how high we push those rates, they will never increase fast enough to outpace the frequency and severity of losses.
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