* New York - Commercial vehicle insurer profits hurt
--- More accidents and higher than anticipated payouts for claims hurt U.S. insurers’ profits from commercial auto policies in 2016, and explain why trucking companies are seeing higher premiums... The financial results for U.S. insurers’ commercial auto insurance policies were the worst they’ve been in 15 years, hitting an underwriting combined ratio of 110.4 percent, according to a report released from Fitch Ratings, the New York credit rating agency... Translated, that means for every $100 in commercial auto insurance policy premiums collected, U.S. insurers paid out $110.40, the sixth year in a row underwriting losses outpaced profits, according to the report... Commercial auto insurance includes both liability and physical damage policies. By law, trucking companies as well as individual owner/operators are required to carry both... Higher rates for commercial auto insurance premiums are likely to continue rising, as several companies have stopped writing policies, and “a sharp turnaround in results is not anticipated,” according to the report...
(Photo: South Florida truck accident overturned) -- NY, USA - Trucks.com, by MICHELLE RAFTER - June 2, 2017
* California - New independent truckers: How hard it would be to get insurance
... Getting into the trucking business as an independent owner/operator is more complicated than filling out an application to drive for Uber or Lyft...Insurance policies with annual premiums that cost $6,500 or $7,000 four or five years ago now run anywhere from $12,000 to $14,000, “and a lot of brokers are throwing around $20,000,” said Joe Rajkovacz, director of governmental affairs and communications for the Western States Trucking Association, which helps members find insurance... For CDL truck drivers to operate under their own authority as a licensed, regulated carrier, they must apply to the Federal Motor Carrier Safety Administration, or FMCSA, for a U.S. Department of Transportation number, which allows them to run a heavy-duty truck across state lines. They also must meet other state and federal requirements... And they need insurance. Like any other trucking company, FMCSA requires individual owner/operators to carry a minimum of $750,000 to $5 million in liability coverage, depending on the type of cargo they transport. Coverage minimums haven’t changed since 1985. The FMCSA has looked at raising the requirements but dropped plans for a change earlier this month, saying it did not have sufficient information to make a decision... In addition, owner/operators who work as for-hire interstate haulers also need cargo insurance, typically $100,000 in physical damage coverage. Brokers and shippers may require other coverages types... The biggest cause of higher premiums, however, is U.S. insurers’ reaction to higher-than-expected accident rates and claims involving commercial vehicles, a one-two punch that depleted cash reserves the companies set aside to cover claims, which has hurt profits...
(Photo:) -- Upland, CAL, USA - Trucks.com, by MICHELLE RAFTER - JUNE 6, 2017Labels: trucking industry news USA, trucking insurances
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