If your commercial auto insurance went up this year, you're not imagining it. Commercial auto liability premiums increased 12.2% in the first half of 2024, with physical damage coverage jumping 14.9% in the same period — the steepest increases of any major commercial insurance line. Early 2025 data shows the trend continuing at 6.7% rate increases.Source: National Association of Insurance Commissioners, U.S. Property & Casualty and Title Insurance Industries, 2024 First Half Results
For a small business running 10 vans, that increase can mean $8,000 to $15,000 more per year in premiums — money that comes straight off your bottom line.
Why Is This Happening?
Three forces are driving commercial auto premiums up and they're not going away anytime soon.
1. Nuclear verdicts. Juries are awarding increasingly large settlements against companies whose vehicles cause accidents. A "nuclear verdict" — a jury award over $10 million — used to be rare in commercial auto cases. They're now common enough that insurers have built them into every policy. When one fleet in your industry pays a $15 million verdict, every small business in that industry pays higher premiums next year.
2. Rising repair costs. The average vehicle repair cost increased 30% between 2020 and 2024, driven by supply chain disruptions, more complex electronics in vehicles, and technician shortages. A fender bender that cost $2,800 to fix in 2019 costs $4,200 today.Source: CCC Intelligent Solutions, Crash Course Report 2024
3. More vehicles on the road. E-commerce growth has put millions of additional delivery vehicles on roads that weren't designed for that volume. More vehicles, more congestion, more incidents — and more claims across the industry mean higher costs for everyone.
What Actually Moves the Needle at Renewal
Simply having a clean record isn't enough anymore. Underwriters want evidence that you're actively managing driver risk — not just hoping nothing happens. The fleets getting the best renewal rates are the ones who walk in with documentation.
Monthly safety reports showing driver behavior trends, incident video proving your response to events, and documented coaching sessions that show you're actually using your data — not just collecting it.
HDVI, one of the leading commercial fleet insurers, reports that fleets with active AI-powered safety programs average roughly 10% off policy rates, with top-performing fleets reaching up to 20%.Source: Commercial Carrier Journal, "AI-enabled dashcams can help fleets reduce insurance costs," 2024
For a 10-vehicle fleet paying $30,000 per year in premiums, a 10% discount saves $3,000 annually — nearly enough to cover a full year of the Fleet Safety IQ Fleet Safety plan. Verify potential discounts directly with your insurance carrier, as programs and amounts vary by insurer and fleet history.
The Conversation to Have With Your Broker
At your next renewal, bring three things: a 12-month driver safety score trend showing improvement, a log of coaching sessions and corrective actions taken, and incident video documentation from any claims or near-misses. Ask your broker specifically what documentation would qualify for a telematics or fleet safety discount. Most carriers have programs — most small business owners never ask.
If your broker can't answer that question, it may be time to get a second quote from a carrier that actively rewards documented safety programs.
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