Tag Archive | Commercial Auto Insurance

The U.S. Is seeing Some of the Largest Increases in Auto Accidents in More Than 50 years…

…And commercial auto insurance rates are spiking hard as a result. Carriers are backing down on coverage and most are putting some serious restrictions on their appetites.

See Property Casualty Insurers Association of America’s (PCI) 7 summer driving safety tips:

Also, see more from Hanover on why auto insurance rates are rising so dramatically:

-JK

Commercial Auto Insurance Prices Likely to Keep Rising

Most lines of insurance cycle between soft and hard markets over a number of years, which has a direct impact on the price of insurance. The commercial auto insurance market is currently hardening after many years of a soft market, which has resulted in higher prices for both commercial and personal auto policies.

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Between 2011 and 2016, competition between auto insurance carriers created a soft, buyer-friendly market. Since then, however, the high cost of claims and increasing costs of vehicle repairs have contributed to a noticeable transition in the market.

Contact me today. I can provide you with resources to help you understand and save on commercial auto insurance, including this prior post, “California Commercial Auto Insurance – Losses & Costs Rising.”

-JK

California Commercial Auto Insurance – Losses & Costs Rising

Right now there are industry-wide challenges with increasing loss costs in commercial and personal auto insurance, particularly in California. If you have a commercial auto insurance policy for your business, you’re probably seeing your premiums increase. If not, you can expect to. I’ve been seeing it with pretty much all major insurance carriers on the market. We’ve been having to shop coverage for clients like crazy due to the steep premium increases.

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California Commercial Auto – What’s Driving Losses?

More trafficTotal miles driven increased 50 percent faster in California than in the rest of the country since the start of 2015. More vehicles = higher frequency of accidents.

Distracted driversOne-quarter of crashes involve drivers talking on phones or texting.

Escalating medical costsMedical care costs are climbing more than 1.5 times faster than other costs.

More fatalities and other severe accidentsAccident rates per person and per mile
of driving are rising in California.

Inexperienced or undesirable driversA shortage of skilled commercial drivers with good driving records = greater odds for accidents.

Rising auto repair costsRecord U.S. auto sales mean garages are often servicing newer cars with more expensive parts. Even minor repairs can cost big bucks.

What you can do to help ease your commercial auto insurance loss costs?

  • Implement a fleet safety program and follow proper fleet maintenance procedures.
  • Enforce company policy for use of company vehicles (e.g., limitation on personal use, who can use company vehicles, hours of operation, etc.).
  • Regularly check employees’ driving records and take appropriate action driving records are not acceptable.
  • Use telematic devices to monitor employee driving habits and usage of company vehicles.
  • Be aware of the risks involved with employees using their personal vehicles on the job.
  • Provide Driver Safety Training for their employees. Important topics include, but are not limited to: Distracted Driving; Speeding; DUI; Need for Rest; What to do if your vehicle breaks down, etc.

Need help with these things? Contact me today. Buying a commercial auto policy is one thing, but implementing these risk management procedures along with the policy can help your business tremendously with costs.

-JK

Powerful Driving-Safety Ad

This powerful and simple driving safety advertisement from the New Zealand Transport Agency will really make you think about speeding and will probably give you some serious goosebumps when you watch it.

From Mashable: the public-service announcement dissects an accident by freezing the moment before impact. A man who pulled out of an intersection too fast pleads for his life and that of his son. The request falls on deaf ears, though. “I’m going too fast,” replies the driver of the oncoming car. The point: Other drivers make mistakes, too, so be careful.

Take a look for yourself:

Be careful out there and make sure you think of others first before yourself when you’re running late for that party, for work, or wherever else you’re trying get to. Give yourself plenty of time so that you’re not putting yourself in the situation where you feel the need to speed.

-JK

New High-tech Auto Theft Device Showing Up In The U.S.

From Long Beach, CA to Chicago, IL, thieves with no keys are breaking into automobiles with mysterious new high-tech hand-held box device. It appears this is the latest high-tech crime tool as cars have become “rolling computers.” Check out this news piece from CNN which was originally published on 6/21/13.

According to the California Highway Patrol, there were more than 700,000 auto thefts nationwide in 2011, with 156,796 occurring in California, the most for any state.

It’s important to know what to do if your vehicle is stolen. Here are a few suggestions:

1 – The best offense is a good defense. Consider purchasing comprehensive car insurance, which covers your vehicle if it is damaged in anything other than a collision. This includes auto theft, vandalism, floods, hailstorms and fire damage.

2 – Contact police immediately if your vehicle is stolen and file a report. The chances of recovering a stolen vehicle decreases as time passes.

3 – Be sure to have the following information when filing a claim with your insurance carrier:

  • Policy number
  • When and where you last saw your car (date, time and location)
  • Year, make and model
  • Vehicle identification number
  • License plate number
  • Police report number

4 – Be sure to list any additional valuables that were in your car at the time it was stolen.

5 – Offer photos of your car, if possible, to the police and your claims adjuster.

-JK

Drunk Driver Nearly Causes Multiple Accidents – Ends Up Crashing

Check out this cliff-hanger video. This drunk driver nearly causes multiple accidents but ends up crashing and putting his/her own life in jeopardy. Some tense moments on this two lane highway!

According to Mothers Against Drunk Driving (MADD), out of every three traffic deaths involve drunk driving. Every 53 minutes on average, someone is killed in a drunk driving crash (9,878 people in total in 2011). Every 90 seconds, someone is injured because of this entirely preventable crime.

About one-third of the drunk driving problem – arrests, crashes, deaths, and injuries – comes from repeat offenders. At any given point we potentially share the roads with 2 million people with three or more drunk driving offenses.

What to do when you spot an Impaired Driver

  • Stay far behind the suspected drunk driver.
  • Get out of the way and expect the unexpected.
  • Wear your safety belt (and make sure that any children or other passengers have their safety belts fastened as well) – It is one of your best defenses against a drunk driver.
  • Stop right away and look for a phone.
  • Report suspected and impaired drivers to the California Highway Patrol or local police by dialing 911. Give the location, direction of travel, and description of the car and driver’s behavior.

What NOT to do when you spot an Impaired Driver

  • Do not try to pass the car!
  • Do not try to stop the vehicle.
  • Do not follow too closely. The car may stop abruptly.
  • Do not attempt to act in the capacity of the police.
  • Do not try to detain or confront the driver.
  • Call the local police or 911 and let them take care of it!

Most of the time, the signs of a drunk driver aren’t as obvious as the white Ranger in this video. Stay alert on the roads out there!

JK

Rolling Deep…Literally

I found this picture on Google+ today. Talking about rolling deep! Check this guy out…

Rolling Deep

Thinking about purchasing a used car? If so, protect yourself from buying a flood damaged vehicle by doing a little research and by having the vehicle thoroughly checked by a mechanic.

Every year, tens of thousands of cars are damaged by floodwaters and more than half end up back on the road. Damaged cars are often repaired cosmetically and moved to adjacent states or other areas of the country where many are sold to unsuspecting consumers. These floodwaters can cause damage to a vehicle’s computer and electrical systems, as well as potentially causing anti-lock braking and airbag systems to malfunction.

Used Car Buying Tips: Detecting and Avoiding Flood Damaged Vehicles (from CARFAX Vehicle History Reports)

To help you avoid cars with water damage, CARFAX offers these tips:

  • Check the trunk, glove compartment, the dashboard and below the seats for signs of water damage such as silt, mud or rust.
  • Examine upholstery and carpeting closely; if it doesn’t match the interior or fits loosely, it may have been replaced. Discolored, faded or stained materials could indicate water damage.
  • Turn the ignition key and make sure that accessory and warning lights and gauges come on and work properly. Make sure the airbag and ABS lights come on.
  • Test lights (interior and exterior), windshield wipers, turn signals, cigarette lighter, radio, heater and air conditioner several times to make sure they work.
  • Flex some of the wires beneath the dashboard. Wet wires will become brittle upon drying and may crack.
  • Take a deep breath and smell for musty odors from mildew.
  • Go to a trusted mechanic for a pre-purchase inspection. Always get vehicles checked BEFORE handing over any money.
  • Ask to see a vehicle history report.

Facts: Flood Damage from Hurricanes and Tropical Storms

  •  Hurricane Floyd (1999) damaged 75,000 vehicles and than half were put back out on the road.
  • Tropical Storm Allison (2001) – More than 95,000 vehicles flooded by the most extensive tropical storm in U.S. history.
  • Hurricane Ivan (2004) – Left more than 100,000 cars submerged in floodwaters throughout the Southeast.
  • Hurricane Katrina, Hurricane Rita and Hurricane Wilma (2005) – claimed more than 600,000 cars across the Gulf Coast. Many of these cars still are showing up for sale around the country.
  • Hurricane Ike (2008) – more than 100,000 cars in Texas and Louisiana, from Galveston and Houston over to Baton Rouge, were left underwater.

If all else fails, you can do what the dude above did and you won’t have to worry about flood damage to your car.

JK

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