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Transportation Insurance Industry in a “Hard Market”

You are currently viewing Transportation Insurance Industry in a “Hard Market”
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Have you tried to ship your car and found that your insurance company just won’t cover the trip? When you attempted to get a third-party insurance company to cover the trip, were you denied or presented with ludicrous prices? You’re not alone, and it is a problem. The automotive transportation industry is in a decade-long hard market. This means insurance companies raise rates and limit insurance policies. Truck drivers are increasingly asking customers to provide their own insurance to help offset costs.

A “hard market” is an economic term for when there is high demand but no supply. Insurance companies are increasingly writing fewer and fewer insurance policies for automotive transportation truckers. The reason for this is mainly because of state politics. Claims against commercial transport truckers in some states have increased over 1,000% since 2010. Judges rule against the drivers more often than not, and insurance companies are no longer seeing the benefit of insuring them.

In order to fight against these terms, drivers need to overhaul their entire operations. Trucking companies need to double check that they’re always following all the rules and regulations. This means enforced systems of safety management and attention to all Department of Transportation compliance. Truckers are doing their part, and technology is helping.

Technology will help Lower Transportation Insurance Costs

Insurance companies love technology. They can get hard and fast numbers, and insurance underwriters love numbers. Numbers can prove their findings and are easier to report. Drivers have enlisted the help of dash cams and telematics to help capture the driver’s performance. In fact, many insurance companies will only write a policy based on this telematics. The only problem is that, at one time, this technology helped lower insurance rates. Today, however, they are required to get a fair rate for drivers.

Studies show that the second quarter of 2022 will make getting insurance even harder for commercial transport drivers. The future of insurance shows that agents and brokers will build a more effective and impactful solution for clients that will assist in risk differentiation. In the meantime, drivers must create more data analysis to present to insurance companies. This will quantify the level of risk and potential profitability. However, while we wait for this technology to catch up, it may become increasingly difficult for the average person to get insurance to ship their car.

The good news is that reputable car shipping companies that have good relationships with the insurance companies still have premium insurance policies that their customers can take advantage of. Global Auto Transportation, for instance, offers insurance to every one of their clients and includes insurance right there in their quote. This means you don’t have to risk not having coverage for your car while shipping it. If your shipping company asks you to get your own insurance, call Global Auto Transportation to see how much they can save you.

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