ATRI releases insurance cost research to help fleets manage risk
Key takeaways
- Truck liability insurance costs rose 18.6% from 2021 to 2024 despite lower crash rates.
- Higher excess coverage costs highlight growing litigation pressure on fleets.
- Safety technology adoption correlated with lower liability losses and insurance costs for carriers.
The American Transportation Research Institute (ATRI) has released new research on rising commercial auto liability insurance costs in the trucking industry and the strategies motor carriers are using to manage those expenses.
ATRI found that liability insurance premium costs increased 18.6% from 2021 to 2024, reaching 10.2 cents per mile. During the same period, heavy-duty truck-involved crash rates declined 2.6% industry-wide.
According to the report, rising crash claim expenses contributed to higher insurance costs. Among survey respondents, per-mile liability losses increased an average of 33.1% during the three-year period.
The research also found that excess coverage costs increased at a faster pace than primary liability premiums. From 2021 to 2024, premium costs for the $5 million to $10 million insurance layer increased 34% to 1.58 cents per mile, while the $10 million to $15 million layer increased 45% to 1.05 cents per mile. ATRI linked the increases to the impact of litigation on claims expenses.
The report identified several risk management approaches associated with lower combined liability losses and premium costs. Fleets with more retained risk in their primary coverage layer reported lower overall costs regardless of fleet size. Fleets that reduced total purchased coverage also saw an average 2.4% reduction in combined liability losses and premium costs in the following year when adjusted for inflation.
ATRI noted that six safety technologies showed a statistically significant correlation with lower per-mile liability losses. The report also includes benchmarks related to insurance coverage limits, deductible levels, self-insurance strategies, and the percentage of revenue fleets spend on insurance coverage.
“ATRI’s report gives us invaluable visibility on the changing liability insurance landscape and how fleets are navigating it,” Lynette Woodie, ArcBest manager of loss prevention and administration, stated. “Good fleets don’t just react passively to rate increases each year. They take the initiative by analyzing data and working closely with their insurers to craft a holistic risk management plan that improves safety and reduces costs.”
