Why do companies raise truck insurance prices?
Most insurance companies are gradually raising motor insurance prices. Something that has been commented in the sector for a long time has come true since 2015. And it has become more pronounced in 2016. Today more than ever you need the support of an expert brokerage in transport insurance that will defend your interests to the climbs. The changes have not been the same for all vehicles. For example, known as the best-rated truck insurance has raised an average of 15%, depending on the types and the companies; while the insurance of trucks and trucks tractors insurance are having raised that can reach on average in the sector up to 30%.
We see the 4 main reasons behind the rise:
1. History of claims
Firstly, it should be noted that those who are least affected by the climbs are the drivers with the least accidents. If you have not had any losses over the last few years, you probably have not even noticed the rise or it has been minimal. On the other hand, if you have had losses you have encountered a very high price increases. This situation is due to the fact that when calculating the price of insurance, insurance companies are giving more and more importance to the number of claims of the insured. It is obvious that this system favors mainly the good conductors.
2. Increase in the number of traffic accidents
The increase in accidents has been detected since the year 2014. An economic recovery brought about by increased use of vehicles in general and increased freight transport by road. The greater traffic is also accentuated by the drop in the price of fuel. Another aspect that is involved is the aging of the car fleet, including that of trucks, which has been occurring since the beginning of the crisis in 2008: the increase in traffic and worse vehicles lead to a greater number of accidents. According to insurance companies, the premiums that have been applied so far are not enough to cover the total cost of the claims.
3. Greater compensation to victims and injured by traffic accidents
The third reason for the increase is the entry into force of the new Compensation Scale for Victims and Injured by Traffic Accidents and their relatives, the compensation to the relatives of the deceased and to the large injured are much higher since January 2016. The scale also contemplates new family situations and coexistence that were not previously included. This means that the number of eligible family members has increased.
4. End of the "price war"
Truck insurance prices have been falling since the start of the economic crisis in 2008. The fall in the volume of revenues from reduced vehicle numbers and the emergence of low-cost advantageous offers drove insurers into a price war.