In a new ATRI report, The Impact of Rising Insurance Costs on the Trucking Industry, the industry thought leader analyzes and addresses some of the short and long-term effects that the rising costs of insurance could have on the trucking industry, including carriers.
According to the report and accompanying press release, nearly every major carrier experienced increased insurance premium costs over the past few years. These rising premiums have pushed many carriers to take steps to offset the costs, including cutting driver wages, bonuses, or even sacrificing equipment upgrades in the name of cost-saving.
Looking at the impact of rising insurance costs
Chances are that your team has already experienced the impact of rising insurance costs and has started to take steps to offset this financial burden. According to the report, insurance costs are rising across carriers of all sizes, and carriers with smaller fleets are paying more than larger fleets – up to three times more on a per-mile basis.
Unfortunately, these rapid insurance cost increases are causing carriers to take steps that directly impact drivers, their daily satisfaction, and even their safety. By reducing wages or cutting bonuses, carriers are setting themselves up to be less competitive in the driver market. And decreasing investment in new truck equipment, technology, and advancements can impact drivers on the road and even put their safety at risk.
How should carriers respond to these rising costs?
In the report, ATRI proposes a few options for carriers to respond to these rising costs.
- First, decreasing coverage levels is not necessarily decreasing premiums. Carriers should not look to decrease insurance levels just to cut costs. Focusing on driver training and investing in safe driving policies can help keep your drivers safe on the road while decreasing deductibles and premium increases.
- Second, this is poised to be a long-term challenge that carriers will have to incorporate into their strategies moving forward. Instead of making quick changes like slashing driver wages, carriers must look ahead to determine how they can cost save and be more streamlined internally, thus approaching cost saving more proactively.
Want to learn more?
DriverReach is proud to partner with ATRI on providing thought leadership and educational materials to the trucking industry. Auditing your internal driver recruiting strategy and ensuring your operations are running at the top of industry expectations can ensure your team is equipped and ready to tackle these new challenges head-on.
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