Commercial Auto insurance has seen consistent rate increases over the past several years. The average renewal rate increase in Q4 2025, according to IVANS, is 6.97% (depending on the region and individual account’s risk profile). Small fleets and those with favorable loss experience are performing better, whereas large fleets, heavy-truck fleets, and those with losses are experiencing even larger increases. A major reason for these increases is the rising cost of claims, particularly severe trucking accidents, which are more expensive to defend and settle.
Liability Claims Drive Today’s Commercial Auto Market
Rising auto liability claim severity and litigation continue to drive costs upward, prompting insurers to seek higher rates and tighten underwriting. What this means for truckers and fleets:
- Higher base rates (even for good accounts)
- Less willingness to write certain operations (new ventures, high-radius, certain commodities, poor loss history)
- More restrictive terms (higher deductibles, stricter driver requirements, tighter eligibility)
Social Inflation and Litigation Dynamics
Settlements and jury awards in commercial auto accidents have been rising, often faster than overall inflation. This is due to a mix of factors commonly described as social inflation (larger awards, broader damage theories, more expensive defense, longer time-to-settle).
Another trend attracting attention in recent years is the rise in third-party litigation funding (TPLF). This is where outside capital, typically from private equity firms, finances lawsuits in exchange for a share of the recovery. Industry research and commentary increasingly point to the TPLF as a factor that can extend litigation and press harder on settlement values, because more resources are available to keep cases going.
As a result, insurance companies are paying out substantially more in settlements and verdicts and passing these costs on in premiums to maintain rate adequacy and return to profitability in the Commercial Auto space.
They are also examining the risk management and loss-control measures a trucking company employs to prevent and mitigate the frequency and severity of losses, including driver oversight and training, telematics, dash cams, and maintenance documentation.
The Cost of Vehicular Repairs
While liability claims make headline news, the cost of repairing vehicular damage also affects Commercial Auto Physical Damage premiums. Modern equipment (sensors, ADAS components, specialized parts) in trucks is more complex, shop labor rates remain high in many regions, and parts availability and cycle time can increase rental/tow/storage and downtime costs
Keeping Costs Under Control
You can’t control everything on the road, but you can control how well you’re prepared when something happens. Be sure to report an accident to the insurance company immediately, document the collision details, and preserve evidence.
Additionally, prioritize safety in your operation. Be sure you communicate the steps you’re taking to your agent and insurance company. Underwriters seek to see accounts that maintain tight operations, with clear policies on speeding, distracted driving, hours-of-service compliance, supported by current driver qualification files, MVR monitoring, maintenance and inspection records, and telematics/dash cams with a defined review process. Strong controls can improve insurance company options, terms, and pricing stability.
About Western Truck
Western Truck Insurance Services is an insurance brokerage specializing in commercial truck insurance. We know this stuff and want to ensure you do, too. We assist owner-operators and truck fleets in obtaining quality, affordable truck insurance, including Commercial Auto/Truck Liability and Physical Damage coverages. We partner with several specialty trucking insurance companies to give you more options and better rates.
Our clients appreciate our dedication to finding competitive rates and providing unparalleled service, complemented by excellent insurance options. They also value our state-of-the-art automation, which provides lightning-fast truck insurance quotes, customer service, insurance certificates, and coverage changes. Contact us today at (800) 937-8785 to learn more.