Three factors behind trucking's rising insurance rates

While insurance rates for individuals and many businesses are rising across the board, there’s been an exponential increase in the transportation industry over the past decade. Why is that?  Below are the three reasons you need to know for why insurance rates are rising.

1.) Distracted Driving Issues

There is an influx in drivers using technology while driving, which has increased the amount of injuries and cost from bills per year. Texting while driving or smartphone use while driving are contributing factors. 

2.) Lower Driver Hiring Standards

There is a driver shortage issue, which has led to trucking companies lowering their standards for hiring drivers. This has led to an increase in accidents and issues with defending the accidents. This results in extremely high verdict being delivered, with increased costs associated with them.

3.) ‘Reptile Theory’ Litigation Strategy

This theory is when the plaintiff’s attorney causes the jury to feel personally endangered by the commercial drivers and their companies. The attorneys then use this to persuade the jurors that rewarding an excessive amount of money to the plaintiff will result in the danger of ceasing to exist. 

Make sure you and your transportation company don’t overpay and are properly insured against large verdicts. Get the insurance coverage that’s right for you. Call Ansay & Associates today at 1-888-262-6729 or contact our team for more information.