Over the past couple of years we have seen carrier after carrier running high loss ratios on their commercial auto business.
There are several factors playing into this ......
• More Traffic – 3% increase in commercial vehicle miles from last year which contributes to frequency of accidents
• Distracted Drivers – Texting and phone calls
• Medical Costs – increasing 1.5 times faster than other costs
• Inexperienced Drivers – major shortage of skilled drivers with good driving records
• Auto Repairs – Today’s vehicles are very expensive to repair