Commercial Auto Insurance Rates Are on the Rise

Insurance rates in general have been mostly flat for a few years now. However, commercial auto insurance is on a rapid rate incline. There are many factors to the rate increases, but the primary driver is the new technology onboard vehicles and cost to repair them. Think about how much cars have advanced in the past few years… there are cameras, sensors, multiple screens, self parking, self driving even! A small “fender bender” that might have cost less than a thousand dollars is now averaging a few thousand dollars. Specialized labor and parts costs mean that you can’t usually repair a significant accident for less than $10,000. Insurance carriers have had to play catch up with rates in the meantime. Auto insurance can be very competitive and there is usually a fight for the business. Now that carriers are losing money on this line of business they are all increasing rates at the same time. Some carriers are not even writing commercial auto without a supporting line of business like liability or property coverage.

Food trucks typically don’t have all the fancy technology like new model vehicles, but the rates for food truck auto insurance are suffering with everyone else. Major direct writing carriers have seen rates jump over 25%. They are banking that they will get enough insureds to renew coverage that they can afford to lose some that renew without shopping. If you have not shopped your food truck insurance with Insure My Food Truck, now is the time! Our program has specialized coverage for gourmet food trucks. Although our auto rates have also increased over the past couple of years, they have not increases as much as most other carriers. You don’t have to sacrifice coverage to offset your large auto insurance rate increases. Our ultimate goal is to bring the best coverage and rates to the best food trucks. Please reach out or request a quote here.