Business auto is currently the largest source of claims for insurance carriers, with many of the losses concentrated in public auto insurance sectors. There are many reasons for this. Cell phones are everywhere, increasing distracted driving accidents. The economy is doing well and gas prices are down, leading to more vehicles on the road. This in turn means more accidents. Additionally, repair costs for newer vehicles are higher. What used to be a $200 bumper replacement can now cost $2,000 for a modern auto.
In fact, in total, the cost of business automobile claims has been higher than insurance premiums paid since 2011. Thus, for several years, public auto insurance companies have lost money providing business auto coverage. Lots of it. Competition between the insurance companies kept premiums artificially low – no carrier wanted to be the first to raise rates.
However, we are beginning to see several insurance carriers tighten public auto insurance underwriting requirements and increase rates, particularly for businesses performing non-emergency medical transportation. Taxi, limo, shuttle, and other forms of public transportation should not consider themselves immune. We are contracted with many major public auto insurance companies, but a common theme of higher premiums is evident. Increases are as low as 4% in states with low claims, or as high as 40% in states where claim expenses are great. As your insurance agent, we want you to be aware of the situation.
As your public auto insurance agent…
We will continue to monitor our insurance carriers and work diligently to ensure your policies remain affordable, while protecting the business you have built. If you have never reached out to your Bankers Insurance agent for loss control advice, there has never been a better time to take advantage of these great resources we offer at no cost. These services can help reduce your claims, keeping insurance affordable. Don’t have the contact information for your agent? Get it from your Client Service Portal.
We value the trust you place in us. Thank you for your business. If you are not a current client, visit one of the following pages for more information or to request a quote.
Livery Insurance Limo Insurance NEMT Insurance Taxi Insurance
Eric Lane
Public Auto Risk Manager
Bankers Insurance LLC
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