When you run a commercial auto fleet these days, you face a number of risks and challenges – including some you might not have faced years ago. Supply chain disruptions, unprecedented labor shortages, and the damaging effects of rising inflation, including the rising cost of new and used vehicles, auto parts, and litigation settlements are pushing up auto insurance rates making it more important than ever to understand the risks to your commercial auto fleet and what you can do to prepare for them.
Here are five of the top trends to be aware of.
Advancements in auto technology, a shortage of vehicles and skilled auto technicians, and a variety of supply chain issues all contribute to increased vehicle and parts costs — making auto claims that much more expensive. In addition, jury verdicts for bodily injury claims are rising at a staggering rate. According to the American Transportation Research Institute, verdicts grew over 50% each year from 2010 to 2018.1
While you can’t do anything about the price of vehicle cameras and sensors, you can take steps to help ensure that your fleet always follows best practice safety procedures to avoid damages in the first place. For example:
When fleet owners have difficulty finding and keeping experienced drivers, they might have to rely on less experienced drivers, and that can lead to increased risk for accidents.
To give your fleet the best opportunity for success, regardless of experience, consider:
With telematics, your risk manager can view drivers’ behaviors and use that information to identify areas for training, predict mechanical failures that can keep drivers from breaking down on the road, and even incentivize safe driving.
According to the CDC, over 3,000 people died and 424,000 people were injured in 2019 in crashes involving a distracted driver.2
To help your drivers stay between the lines and at a safe distance from other drivers, consider:
Catalytic converters are used to convert a car’s hazardous exhaust into less harmful gases. But these days, they’re being stolen and sold for the precious metals they contain, namely palladium, platinum or rhodium, which are sold for high prices on the black market.
To prevent thieves from stealing catalytic converters from your fleet (and damaging your vehicles in the process), consider:
According to experts, climate change is increasing the frequency and intensity of extreme weather including rain, flooding, droughts, and tornadoes.3 These weather patterns greatly contribute to dangers on the road. On average, 1.2 million vehicles crash each year due to weather conditions.4
To help keep your drivers safe on the road:
For more information about keeping your fleet and drivers safe and protected contact your insurance professional.
We can help with that.