Truckers Struggle As Insurance Costs Near Crisis
A sharp rise in insurance rates is forcing truck companies to accept more risk as well as incur higher operating costs. The problem could reach crisis levels before long, some observers say, and may even push some truckers out of business.
Great West Casualty Co., the largest trucking liability insurance writer, with nearly 10,000 policies in effect, raised premiums 15% to 20% in the past year.
ncreasing premium costs are forcing many fleets to accept higher deductibles on policies or to reduce their insurance coverage. For larger carriers, however, the trend could spark new interest in self-insurance or the establishment of captive insurance subsidiaries to contain costs.
The market for truck insurance took a hard turn late last year after several large underwriters reversed course in the face of mounting losses and decided to drop the aggressive discounts they once offered to carriers to gain market share.
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