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six factors driving commercial auto losses

By Barrow Group Staff / August 01, 2022

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The same things causing personal auto losses to rise are the same things causing commercial auto losses to rise.  That means higher insurance rates for us all!!  Here are six trends that have contributed to the rise of auto losses:

1.  More vehicles on the road--A record number of vehicles on the road means traffic and congestion, which increases the risk of collisions.

2.  Distracted driving--Today's drivers face more distractions than ever before.  Distracted driving can reduce awareness, decision-making and performance that can result in an accident.

3.  Driver shortage--A shortage of experienced commercial drivers has caused employers to hire people with less experience.  Newer drivers are more likely to get into accidents.

4.  Litigation trends--Lawyers are getting involved in more and more auto claims.  This litigation drives the cost of claims.  What's more, trial verdicts related to motor vehicle crashes can be as much as six figures.  

5.  Rising medical costs--Medical costs continue to rise.  As a result, many injuries caused by auto incidents exceed coverage limits.

6.  Increased vehicle repair costs--While technological advancements have made vehicles safer and more efficient, they also increase vehicle repair costs.

 

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