Liability insurance costs remain one of the most significant operational challenges facing motor carriers today. According to the American Transportation Research Institute’s (ATRI) 2026 report, Trucking’s Rising Insurance Costs: Issues and Opportunities, costs continue to rise despite improvements in truck-involved crash rates and significant safety investments by many fleets.
The study, which analyzed data from more than 105,000 truck-tractors, found that Commercial Auto Liability premiums have increased substantially over the last decade. ATRI reports that industry-average Liability insurance costs rose 37.8% between 2015 and 2024, reaching a record $0.102 per mile. In some sectors and fleet segments, premium costs increased by more than 50%.
Rising Costs Despite Safer Roads
While the ATRI found that heavy-duty truck injury and fatal crash rates have declined since their pre-pandemic highs, several factors contribute to higher insurance costs, including:
- Medical inflation: Medical costs continue to rise faster than overall inflation, increasing the cost of treating accident-related injuries. As healthcare expenses climb, so do claim payouts, settlements, and jury awards associated with trucking accidents.
- Increased litigation expenses: Defending claims has become more expensive due to rising legal costs, longer case timelines, and more complex litigation. Even when cases are ultimately settled, legal defense costs can significantly increase overall claim expenses.
- Social inflation: Social inflation refers to the growing tendency toward larger settlements and jury awards, driven by changing societal attitudes, aggressive plaintiff-attorney tactics, third-party litigation funding, and increased public scrutiny of corporations. In trucking, this has contributed to the rise of “nuclear verdicts“—jury awards that exceed $10 million.
- Higher claim severity: While accident frequency may be improving, the cost of individual claims continues to increase. More severe injuries, higher medical expenses, larger settlements, and greater property damage costs all contribute to higher claim severity and increased insurance costs.
In fact, Commercial Auto insurance companies posted a $4.9 billion underwriting loss in 2024, which is the fourteenth consecutive year of losses. The combined ratio finished at 107.2, meaning insurers paid out $1.07 in claims and expenses for every $1.00 they collected in premiums. According to AM Best, Commercial Auto has accumulated more than $10 billion in net underwriting losses in the last two years alone.
Small Fleets Continue to Face Higher Costs
ATRI’s analysis found that smaller fleets generally pay more for Liability coverage per mile than larger fleets. Larger carriers often benefit from more consistent operations, established loss histories, greater safety resources, and additional risk management tools that can help control costs.
At the same time, premium costs increased across nearly every fleet-size category between 2020 and 2024, underscoring that rising insurance expenses remain an industry-wide challenge.
Safety Investments Critical
ATRI’s research reinforces the importance of maintaining a strong safety culture. The report notes that fleets investing in safety technologies, driver training, and proactive risk management practices tend to experience more favorable outcomes over time. Industry experts cited by ATRI consistently identified a commitment to safety as one of the most important factors influencing long-term insurance performance.
For trucking companies, investments in driver coaching, dash cameras, collision mitigation systems, telematics, and safety management programs may not eliminate market pressures, but they can help reduce losses and strengthen a fleet’s overall risk profile.
Managing Risk in a Challenging Market
The ATRI report also found that many fleets are reevaluating how they manage risk. Some motor carriers have increased deductibles, adopted self-insurance strategies, or adjusted coverage structures to control costs. Others have focused on strengthening claims management and loss prevention efforts.
While trucking insurance costs remain elevated, ATRI’s research highlights an important reality: fleets still have meaningful opportunities to influence their risk profile. A commitment to safety, effective claims management, and proactive risk mitigation can help carriers control losses, improve insurability, and position themselves for long-term success in an increasingly complex insurance environment.
About Western Truck
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