The fatigue that businesses are feeling, after multiple years of rising commercial auto insurance rates, is real. Factors ranging from the rise in attorney representation in bodily injury claims to the higher costs of replacement parts for technically complex cars and trucks continue to drive up claim costs for insurance carriers.分心的驾驶, heavily impacted by mobile phone usage, continues to pose serious risks to all drivers.
Auto Rate Increases Show No Signs of Slowing
In this article, we’ll explain:
- What you need to know about the shortages and inflation.
- How they could impact your commercial auto premiums.
- Other factors that are causing insurance prices to go up.
- What you can do to gain more control over your business insurance costs.
Commercial Auto Insurance
Supply of new vehicles is low
Shortage of chips and raw materials is lowering production of new vehicles1.
10/21与Q1 ’20的二手车价格上涨50％3and 57% rise in Class 8 heavy truck prices in 9/21 vs 9/204
Parts & Technology
Global supply of auto parts is down
Cost to repair vehicles is up
更多的advanced auto technology is a big factor.
6% rise in average cost per part5
Auto rentals in ’21 nearly 3 days longer vs. ’206
Labor Shortages & Costs
Number of skilled auto techniciansis decreasing
It’s more difficult to recruit, train andretain talent.
Auto body repair costs are increasing
Skilled labor shortage is raising repair costs.
Bodily injury claim costs are on the rise
Increased attorney involvement pluschanging societal mindsets are contributing factors
~7% increase intreatment costs in ’21 on top of a 6% rise in ’207
Contact your Travelers representative for more information.
1TechMonitor, Sept 3 2021
3U.S. Bureau of Labor Statistics and Manheim Consulting
4ACT Research/Transportation Topics News, October 27, 2021
6Collision Week, October 15, 2021
© 2021 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. BDVIN.0000-D New 11-21
There are currently many stressors on new car and truck inventories. The pandemic, along with other factors, made it nearly impossible to build vehicles and produce parts throughout most of the world for months and months. Shortages of raw materials (steel, glass, aluminum) used in vehicle manufacturing and precious metals used in computer chips so critical to car technology are the main culprits. Additional supply chain blockages and worker shortages have only compounded the problem.
This means there simply aren’t enough new cars, trucks, and other vehicles available to meet customer demand. While the shortage is making the limited number of new autos more expensive, the resulting demand for used cars presents the most direct impact to commercial auto insurance claim costs. That’s because when a car is declared a total loss after a crash, insurance carriers generally pay claims based on the current value of the used car or truck, also known as the actual cash value.
According to Cox Automotive, used car inventories are running 53 percent below August 2020 levels and 68 percent below 2019 levels.1美国劳工统计局和曼海姆咨询局的记录库存和需求飙升，2pegs the cost of new vehicles at around 50% higher in October 2021 than they were in the quarter leading into the pandemic shutdowns (January to March 2020).
业内专家认为,这可能需要到2023 for new car and truck supplies to return to normal. This is all dependent on the future of the pandemic and resolvingsupply chain issues.
Auto Parts and Worker Shortages
事故发生后，还需要修理它们所需的相同零件。零件短缺导致车辆维修成本增加。根据CCC智能解决方案的数据，在2021年10月的前10个月中，平均零件的价格上涨了6％。3The higher cost of parts is being passed on to insurers paying for repairs.
The impact of升级法律判决和索赔相关的支出is another factor in rising insurance rates. Legal judgements against businesses slowed some during the coronavirus pandemic, when courts were closed and fewer court cases tried. The trend is widely expected to return as courts ramp back up. Some of the issues contributing to these higher verdicts against businesses include:
- Mistrust of corporations.An increasing number of people believe that companies are unlikely to do the right thing, a societal trend leading to more people filing lawsuits and, when on a jury, deciding in favor of plaintiffs.
- Plaintiff attorneys are becoming more sophisticated.Many have invested a significant amount in tactics to increase the number of clients they represent and overall number of lawsuits, including:
- Strategic marketing and advertising
- Legal data and analytic capabilities
- Plaintiff attorneys have also increased the use of policy-limit demands as a tactic使保险公司有责任保护其被保险人，请在尚无适当信息的情况下就索赔解决。除此之外，他们在为其案件和使用社交媒体筛查陪审员的案件中寻找有利的场所而变得更加积极。
- Changes in the legal environment.The trend of juries assigning broad responsibility to corporations beyond what it stipulated in contracts, has increasingly resulted in often outsized verdicts for plaintiffs.
What Businesses Can Do to Gain More Control Over Their Insurance Costs
- Implementworkplace safety practicesincluding programs that encourage safe driving to help reduce the number of claims your company faces in the first place.
- Usetelematics to monitor worker driving habitsand manage vehicle maintenance.
If you have any questions about your current commercial auto premium or your overall business insurance coverage, contact your agent or a旅行ers representative. They’ll provide you with the answers you need and can make recommendations on how you can get18IUCK新利官网 以及您所有的业务覆盖范围，最佳成本。
更多的Prepare & Prevent
Continuous onboarding and training of employees can help overall retention. Create an employee onboarding and training plan.
Creating a safety culture in the workplace can help keep employees safe and prevent workplace accidents.