Trends Are Driving Increased Vehicle Insurance Rates.
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. Distracted driving, heavily impacted by mobile phone usage, continues to pose serious risks to all drivers.
Further compounding the issue, the COVID-19 pandemic has added supply chain blockages, labor shortages, and inflationary pressures that all but promise to extend the need for rate increases. Meanwhile, with drivers returning to the roads at more normal levels post 2020 lockdowns and courts reopening, the negative trend of rising bodily injury costs is expected to resume.