Tag: claims

Claims Series Part III: How Claims Impact Trucking Insurance

Western Truck Insurance

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.

Report Claims Quickly and Get the Most from Your Policy

Bob Holtzman

Crunch… it’s a sound no one likes to hear, especially when you’re driving a commercial vehicle.

Unfortunately, accidents do happen, even to the best drivers. In 2011 the FMCSA noted more than 5 million accidents reported to police with 273,000 involving large trucks. Safety can play a big role in helping you avoid these accidents, and when they do occur, knowing how to properly report your claim could be essential in getting you the most out of your truck insurance policy. When you have a claim make sure you report it quickly and thoroughly.

  Reporting a Claim- The Do’s and the Don’ts

  Do…

  ·         Get as Much Information as Possible– After an accident get as much information as possible. This will make it easier for your insurance company to figure out fault and ensure quick resolution of your case. Get as much information as you can from other drivers and passengers involved. Also make a note of any potential witnesses with their contact information.

  ·         Take Photos– A picture’s worth a thousand words, especially after a truck accident. Take pictures any damage (both vehicle and property), the accident scene (skid marks, vehicle positions, debris, etc.), the area where the accident occurred (road signs and markers) and any identifiers (license plates, insurance cards, etc.).

  ·         Contact the Police– While police may not come out to every accident scene, it is always a good idea to advise them of an accident, even if it seems minor.

  Don’t…

  ·         Delay– Report claims as soon as possible after an accident or event. Many truck insurance providers require that claims be reported within 24 hours or a higher deductible will apply. Having to pay double your deductible can greatly increase the cost of an accident. Save money by contacting us as soon as possible after an accident. We’ll help you deal with your insurance company.

  ·         Don’t Admit Fault– Never admit fault for accident, even if you think you might have caused it. Without understanding the complete picture behind the events, you don’t know whose fault an accident is. It’s possible that another driver was drinking or talking on the phone and is responsible. Don’t admit fault to other drivers or the police.

Do You Understand Your Policy?

  Every truck insurance policy is different, but understanding the details of yours is essential to getting the most out of your insurance, especially in an accident.  What’s your deductible? What are your requirements when reporting claims? If you don’t thoroughly understand your policy, take a few minutes and review it. The last thing you’ll want to deal with after an accident is trying to figure out your insurance coverage, although we’re happy to help if you need assistance.

Helping with claims is one of the many services we offer our customers here at Western Truck Insurance Services. We stay on top of your claim from the moment you report it to us, making sure you know what’s going on with your insurance company every step of the way. We only work with truck insurance providers that we trust and you can be sure that we’ll ask the right questions, get the best information and clearly relay any concerns to your insurance company. When we help you process claims you’ll know what’s happening, who’s handling what and how your needs are being met. Accidents are no fun, but with Western Truck Insurance Services by your side, they are a lot easier to handle.

  If it’s been awhile since you reviewed your coverage, give us a call. We can make sure your coverage is the best fit for your situation and give you a truck insurance quote for great coverage from some of the top truck insurance companies.