Trucking Still Faces Surging Insurance  and Operational Costs

Over the past several years, the trucking industry is facing rapid increases in insurance rates for long haul trucks. 

The unexpected culprit according to some experts is new technology, as premiums have doubled from an average of $6,000 to $7,000 earlier in the decade to $12,000 to $14,000−with other premiums soaring to $20,000 in some cases.

Additionally, the American Transportation Research Institute credits the biggest increases to premiums in operational costs for trucking firms. From 2013 to 2015, insurance costs spiked from 11% to 29%. The commercial auto industry−including trucks−continues to be the worst performing segment of the insurance industry while carriers have left the truck insurance business for good.

This adds onto the fact that about 51,000 more drivers are needed to alleviate the trucker shortage as companies are shipping more products across the country, per the American Trucking Association.  Advanced Training Systems, a designer and manufacturer of driver training simulators, recently reported that new gadgets installed in trucks are behind the rise in insurance premiums. The company also notes that the price of a new truck starts at $140,000 and can cost up to $175,000, depending the integration of high technology in equipment costs.

John Kearney, CEO of Advanced Training Systems, suggests insurers need to be educated on new technology applied to trucks in order to produce a workable solution to level premium costs and ensure safety. Also, he stated that the implementation of laser radar (LIDAR), coupled with proper behind-wheel training can be a feasible approach for the trucking industry in managing costs and detecting real-time risks on the road.

Category: General Update, News