The rates for commercial auto insurance have slowly increased for the past ten years without any ideas on when it will level off. Although it is still difficult to assess the coronavirus’s total impact on the industry, the key trends affecting the market before the pandemic began will likely emerge again as the economy rises.
There were about two-thousand people that died in the United States due to distracted drivers in 2018.
Every year, there are about 40,000 fatal accidents, and 25% are mostly the result of unfocused driving.
Distracted driving is drinking coffee, changing the heat settings, switching the music, eating, or anything that leads to the driver losing attention. One of the most significant causes of distracted driving is using mobile phones. According to the National Institute of Occupational Safety and Health’s recent survey, about 47% of commercial drivers admitted using their cell phones to send or read a text.
However, other distractions are just as dangerous, even 34% of drivers experienced almost falling asleep while on the road. Those numbers could increase as well. Among the surveyed drivers, 24% of them surprisingly admitted to having near-miss accidents in recent weeks.
Shortage of Qualified Commercial Drivers
There were almost 70,000 available commercial driving jobs in 2018, an increase of over ten thousand more the previous year. By the time the world reaches 2030, that number could spike to 160,000 unfilled positions. The average age of a truck driver these days is 46, making the shortage continue as an obstacle for the industry and what could be the next few years.
Because only a handful of experienced drivers are out for commercial jobs and fewer experienced drivers taking up the available positions, there will likely be an increase in accidents.
Increased Road Use – Pre COVID-19
There were plenty of people on the road until the beginning of the pandemic. During the recovery of the economy, most states still expect fewer cars to drive by. There is a total of 3.225 trillion estimated miles that people drove in 2019, a whopping increase compared to 2017’s 12.2 billion miles. If more drivers occupy the streets, the road density will also increase, which increases the risk of accidents.
The commercial auto insurance market’s difficulties may continue for a few more months, but you still have several options to reduce your insurance premiums and risks. Talk with your broker and insurer to discuss risk levels and tackle any primary areas of concern.
At Howe Insurance Brokerage, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (435) 674-8771. Get your free quote today by CLICKING HERE.