Running a trucking business is tough. One of the biggest challenges today is the shortage of truck drivers. This problem doesn’t just affect operations. It’s also pushing up commercial truck insurance rates. In this blog, we’ll explain why premiums are rising and how you can manage costs.

Why Driver Shortages Affect Insurance Rates

The driver shortage is a big issue for the trucking industry. With fewer drivers, there’s more risk. More accidents, more damage, and more claims for property damage or bodily injury mean higher insurance costs. If you own commercial vehicles, this impacts you directly.

Insurance companies are always looking at risk when setting rates. When there are fewer drivers, especially experienced ones, the risk of accidents goes up. That’s why premiums for trucking insurance are rising. Fewer drivers mean higher risks of accidents and more costly claims.

How Fewer Drivers Lead to Higher Insurance Costs

Driver shortages create a chain of events that increase the cost of insurance:

More accidents: With fewer experienced drivers, there’s a higher chance of accidents. This leads to more claims for bodily injury and property damage.
More claims: Accidents lead to more claims. This increases the cost of commercial truck insurance. The more claims, the higher the rates.
More repairs: Fewer drivers may also mean that trucks or semi-trucks get damaged more often. Higher repair costs add to the cost of insurance.

When there’s more risk on the road, insurance companies raise premiums to cover the potential costs.

What Does a Commercial Truck Insurance Policy Cover?

A commercial truck insurance policy covers different parts of your business:

Physical damage: If your commercial vehicles are damaged in an accident, this coverage helps pay for repairs.
Liability coverage: If your driver causes bodily injury or property damage to someone else, this coverage helps pay for those costs.
Cargo coverage: This protects the goods you’re transporting. If something happens to the cargo, this coverage will help.

With the driver shortage causing more accidents and claims, insurance companies are increasing premiums to make sure they can cover these costs. As a result, your commercial truck insurance can get more expensive.

How Driver Shortages Impact Coverage Limits

Another effect of the driver shortage is on your coverage limits. Insurance companies are adjusting these limits because they see more risk. If your premium increases, you may have to choose whether to cut back on coverage or pay more for higher limits.

If you don’t have enough coverage limits, you could end up paying for property damage or bodily injury claims out of your own pocket. That’s why it’s important to review your coverage limits regularly and adjust them to suit your business.

How Can Fleet Managers Reduce Insurance Costs?

Even though the driver shortage is pushing up trucking insurance premiums, there are steps you can take to keep costs down:

Focus on Safety Training

Insurance companies love to see that you care about safety. A fleet of well-trained drivers means fewer accidents and fewer claims for bodily injury and property damage. By investing in driver training, you can reduce the risk of accidents and lower your premiums.

Use Technology

Technology can help lower your insurance costs. Tools like dash cams and GPS trackers help monitor driver behavior. These tools show insurers that you’re trying to reduce risks. Having technology in place can lead to lower premiums.

Retain Good Drivers

Driver retention is key. When you keep experienced drivers, your risk goes down. Good drivers are less likely to cause accidents. Offering good pay, benefits, and a supportive work environment can help you keep your drivers. This helps lower your insurance costs.

Work with a Good Insurance Agent

Finding the right truck insurance quote can be tricky. An experienced insurance agent can help you navigate the rising premiums and find a good deal. They’ll know the best ways to keep your insurance affordable while still providing the coverage you need.

Review Your Coverage Limits Regularly

As your business grows, it’s important to review your coverage limits. Make sure you have the right amount of coverage for your needs. If premiums are going up, talk to your agent about adjusting your coverage to make sure you’re still fully protected.

Why You Should Act Now to Keep Insurance Costs in Check

The rising cost of commercial truck insurance can hurt your bottom line. But with the right steps, you can manage those costs. Focus on improving safety, keeping good drivers, and working with an expert insurance broker in California to help you save money. Don’t wait for premiums to rise even more—take action now.

At Strong Tie Insurance, we understand the challenges of the trucking industry. If you’re worried about rising premiums, we’re here to help. We’ll work with you to find the best insurance quote for your business. We can help you manage risk, control costs, and keep your fleet protected.

How Truck Driver Shortages Are Raising Commercial Trucking Insurance Costs was last modified: February 3rd, 2025 by Strong Tie Insurance