Why is trucking insurance so expensive?

Why Trucking Insurance Premiums Have Increased

Commercial trucking insurance rates have increased dramatically over the past decade. Here's why:

1. Nuclear Verdicts

The trucking industry has seen an explosion of "nuclear verdicts"—jury awards exceeding $10 million. Some recent examples:

• $280 million verdict in Texas (2021)
• $90 million verdict in Florida (2019)
• $42 million verdict in Louisiana (2021)

These massive awards have fundamentally changed how insurers price risk.

2. Rising Repair Costs

• Modern trucks have more technology and sensors
• Labor rates have increased 15-20% since 2020
• Parts shortages extend repair times
• Average claim severity up 40% in 5 years

3. Medical Cost Inflation

Injury claims are more expensive than ever due to:

• Healthcare costs rising 5-7% annually
• More sophisticated medical treatments
• Longer recovery periods and ongoing care

4. Reinsurance Market Hardening

Insurance companies buy reinsurance to protect against large losses. As reinsurance costs increase, those costs pass to policyholders.

5. Litigation Funding

Third-party litigation funding has made it profitable for attorneys to pursue larger claims and hold out for bigger settlements.

What You Can Do

While market forces are beyond your control, you can:

• Focus on safety to maintain a clean record
• Invest in dashcams and telematics
• Work with a specialized trucking insurance broker
• Consider higher deductibles to lower premiums