Carriers who invest in safety and compliance can differentiate themselves during underwriting and position themselves for more favorable renewals.
According to the American Transportation Research Institute’s (ATRI) latest report, Trucking’s Rising Insurance Costs: Issues and Opportunities, insurance cost and availability ranked as the trucking industry’s third-largest concern, trailing only the economy and lawsuit abuse.
The report provides a comprehensive look at the forces driving insurance costs higher and, more importantly, identifies practical strategies fleets can use to reduce risk and improve insurability.
Here’s what motor carriers need to know.
Insurance Costs Continue to Outpace Inflation
ATRI’s research found that from 2021 to 2024, liability insurance premiums increased by 18.6%, reaching an average of 10.2 cents per mile. Over the last decade, premiums have climbed even more dramatically, increasing 37.8% between 2014 and 2024.
What makes these increases particularly concerning is that they occurred despite safety improvements across the industry. During the same period, heavy-duty truck crash rates actually declined by 2.6%.
The issue here is the growing cost of claims.
ATRI found that liability losses among participating carriers increased by 33.1% per mile between 2021 and 2024. At the same time:
- Lawsuits against trucking companies continue to increase by approximately 3.5% annually
- The largest half of court awards are growing by more than 5.5% annually
- Commercial auto insurers have operated at an underwriting loss for 15 of the past 16 years
These trends have created a difficult insurance marketplace where carriers face rising premiums, reduced capacity, and stricter underwriting requirements.
Nuclear Verdicts Are Driving Excess Coverage Costs
One of the report’s most concerning findings involves excess liability coverage.
While fleets have become accustomed to rising primary insurance premiums, ATRI found that the cost of excess liability layers has increased dramatically. For example, coverage in the $10 million to $15 million excess layer increased by approximately 45% in just four years.
This reflects the growing impact of nuclear verdicts and high-value settlements throughout the trucking industry.
As large jury awards continue to influence insurer loss experience, carriers are being forced to rethink traditional risk management approaches and explore new ways to control long-term insurance costs.
Why Smaller Fleets Pay More
Perhaps the most actionable finding for many trucking companies is the relationship between fleet size and insurance costs.
According to ATRI:
- Fleets operating 5 to 25 trucks paid more than 20 cents per mile for liability coverage in 2024.
- Fleets operating 250 to 1,000 trucks paid roughly half that amount.
There are two primary reasons for this disparity.
1. Limited Data Creates Greater Uncertainty
Smaller fleets generate fewer miles and fewer loss events, making it harder for insurers to accurately predict future risk. As a result, underwriters often price additional uncertainty into premiums.
2. Fewer Safety Investments
Larger fleets typically invest heavily in:
- Driver training programs
- Formal safety management systems
- Telematics and monitoring technology
- Risk management personnel
- Compliance infrastructure
These investments provide measurable evidence of risk control, allowing insurers to offer more favorable pricing.
For many small and mid-sized fleets, this finding reinforces an important reality: insurance pricing is increasingly tied to demonstrated safety performance.
The Good News: Proactive Safety Management Works
One of the most encouraging conclusions from ATRI’s research is that fleets that proactively manage risk are seeing measurable financial benefits.
The report found that carriers who retained more risk and invested in safety improvements often achieved lower overall costs.
Specifically:
- Fleets with higher levels of risk retention experienced lower total cost of risk over time.
- Carriers that reduced purchased insurance coverage while strengthening internal safety controls often saw lower costs in subsequent years.
- Deployment of specific truck safety technologies was correlated with lower liability losses.
In short, fleets that invested in prevention rather than simply purchasing more insurance were frequently rewarded with improved financial outcomes.
Related: Bad Scores: Difference Between CSA Scores, Roadside, Audit and How to Fix Them
What This Means for Trucking Companies
ATRI’s findings highlight a critical shift occurring within the insurance marketplace.
Insurance carriers are no longer evaluating fleets solely based on loss history. They are increasingly examining the systems, technology, training, and compliance practices that contribute to future risk.
For trucking companies, this creates both a challenge and an opportunity.
- The challenge: doing nothing often leads to higher premiums and fewer coverage options.
- The opportunity: carriers who invest in safety and compliance can differentiate themselves during underwriting and position themselves for more favorable renewals.
How CNS Insurance Helps Fleets Control Insurance Costs
At CNS Insurance, we see these ATRI findings reflected in renewal discussions every day.
When a small or mid-sized fleet asks why premiums increased despite a stable loss history, the answer often lies in the broader marketplace and in how underwriters perceive risk.
That’s where proactive risk management becomes essential.
Through our network of compliance, safety, and occupational health services, CNS helps fleets strengthen the areas insurers value most:
- DOT compliance programs
- Driver qualification file management
- Driver training and coaching initiatives
- Safety program development
- Risk mitigation strategies
- Occupational medicine and return-to-work programs
- Claims reduction support
These efforts not only improve operational safety but also help create a stronger underwriting story that can positively impact insurance negotiations.
Has your risk exposure outgrown your insurance program?
The worst situation to be in is getting bad commercial truck insurance coverage and being committed to it for a year when one accident can ruin your business.
At CNS Insurance, we specialize in helping trucking companies and owner-operators navigate these challenges, compare policy options, and build risk profiles that appeal to underwriters. A proactive approach today could mean thousands in savings when renewal time comes.
Before we can get you an estimate, we are going to need some information.
Fill out a complete quote or quick quote to get started. If you have any questions or concerns, please call us at 800.724.5523 or email info@cnsinsures.com.
A quick insurance review today could save your fleet thousands, or keep your company on the road tomorrow.
