What’s fueling rising insurance costs in the trucking world? From nuclear verdicts to skyrocketing repair costs and driver shortages, today's challenges demand more innovative solutions. This article explores how market dynamics are impacting primary trucking insurance and how brokers can help clients navigate the turbulence.
The U.S. trucking industry is the backbone of domestic commerce, moving over 11.46 billion tons of freight annually.1 While freight volumes showed signs of rebounding in early 2025, the road ahead remains rocky for both the for-hire and business auto sectors. A combination of nuclear verdicts, rising physical damage costs, driver shortages, and economic headwinds, including evolving tariffs, continues to challenge the insurance marketplace. Explore how these pressures shape the transportation space’s underwriting, pricing, and capacity decisions.
KEY MARKET CHALLENGES
Primary markets continue to face pressure from high-frequency, high-severity claims. Nuclear verdicts, driven by social inflation and aggressive litigation strategies, remain a top concern. While some states have introduced tort reform such as caps on noneconomic damages, revising types of admissible evidence in lawsuits and requiring bifurcated trials to establish liability of the truck driver separate from its employer, it remains to be seen whether these efforts will provide long-term relief. Claims costs, coupled with rising settlements, continue to push rates upward.
UNDERWRITING TRENDS
Carriers require more detailed data than ever before. Telematics, electronic logging device (ELD) data, and comprehensive driver histories are increasingly used as standard inputs for underwriting decisions. Appetite remains conservative for specific classes, such as logging, towing, and dump trucks. Additionally, risks garaged in Florida, California, metro New York/New Jersey, and Georgia face additional scrutiny.
RATE ENVIRONMENT + CARRIER CAPACITY
Despite a challenging risk landscape, market capacity is strong, with private equity continuing to back new entrants in the trucking space. However, this influx has not led to significant rate relief. Carriers are broadly pushing for rate increases at renewal. Even well-performing accounts see single to low double-digit hikes, while challenging risks face 10–15% increases or more. Most carriers are also overhauling their per unit rates in auto, resulting in substantial changes, particularly for heavy units where the per unit rate has increased significantly in reaction to claims.
LARGER ECONOMIC IMPACTS
The broader economic context also affects insureds. Rising driver wages, increased fuel and repair costs, and inflationary pressure on vehicle parts create financial stress. The recently implemented tariffs are also impacting trucking, with imports deteriorating, volumes are expected to fall. Container volumes were down approximately 20% at the Port of Los Angeles by the end of April.3 Recent research indicates that total marginal costs continue to climb by 21.3%. Though fuel was the most significant driver of this spike, multiple other line items have also jumped by double digits.2 Driver shortages remain a major issue, resulting in an aging workforce as fewer younger drivers enter the field. In some cases, drivers are leaving the profession for warehouse or construction jobs that offer more stability and a better work-life balance. The shortage has increased driver wages by around 15.5%, to $0.724 per mile, reflecting the industry’s continued effort to attract and retain drivers.2
PRIMARY MARKETPLACE OPPORTUNITIES
Despite headwinds, there are still areas of opportunity. Carriers increasingly use analytics to refine pricing, and insureds who can demonstrate safety and performance data through telematics may see more favorable outcomes. Strong retail-wholesale relationships also continue to play a vital role in securing competitive terms and navigating carrier preferences.
HOW CRC SPECIALTY HELPS RETAIL AGENTS
CRC Specialty brings deep transportation expertise and market access to help retail agents manage even the most complex trucking risks. With exclusive programs, access to primary and excess capacity, and a team focused on transportation, CRC provides tailored solutions that address the current realities of the marketplace.
Beyond placement, CRC supports agents with value-added services such as claims advocacy, loss control guidance, and safety consulting. These services help clients secure coverage, improve operations, and reduce the total cost of risk preferences.
BOTTOM LINE
While the trucking insurance sector remains complex and challenging, knowledgeable retail agents who partner with experienced wholesale brokers can continue to find success. CRC Specialty brings the tools, talent, and transportation-focused market access needed to navigate the current road conditions and position clients for smoother miles ahead. Reach out today!
CONTRIBUTORS
- Stewart Brown is the Director of CRC Group’s Southwest Transportation Region.
- Pete Feeney is President Select Transportation with CRC Group’s Binding Division.
- Julie Sirois is the Director of CRC Group’s Northeast Transporation Region.
- Chris Slezak is the Director of CRC Group’s Central Transportation Region.
- Chad Trainor is Senior Director of Operations, specializing in Transportation Underwriting.
END NOTES
- 60+ trucking industry statistics: trends + outlook for 2025, Geotab, April 8, 2025. https://www.geotab.com/blog/trucking-industry-statistics/
- ATRI’s Newest Operational Costs Research Details Spikes in Equipment, Wage, and Total Costs in Trucking, ATRI, June 21, 2023. https://truckingresearch.org/2023/06/atris-newest-operational-costs-research-details-spikes-in-equipment-wage-and-total-costs-in-trucking/
- The trucking industry hits the brakes with tariffs set to dent imports, NBC News, April 23. 2025. https://www.nbcnews.com/business/business-news/trucking-industry-hits-brakes-tariffs-set-dent-imports-rcna202444