Is Your Fleet Vehicle Insurance Going Up Next Year?

You’ve seen the increases in prices, just about everything is more costly than it was a year ago. While some inflation is normal, costs rising this steeply can hurt your business. Car insurance and fleet vehicle insurance have continued to climb as well and it’s expected to continue to increase into 2024. Below, we’ll dive into some reasons that could affect whether fleet insurance will continue to go up next year and what you can do about it as a fleet owner or manager.

What’s Causing Fleet Vehicle Insurance to Increase?

 Inflation is a main cause of the rise in fleet vehicle insurance that influences (and in some cases is caused by) all of the reasons below. Inflation is the process of a currency losing value. Problems with the supply chain, increased industry costs, and worker shortages can all contribute to inflation. Here are other reasons that fleet vehicle insurance may continue to rise in 2024.

• Auto Repair Costs: Escalating auto repair expenses stem from supply chain disruptions and labor shortages. The low availability of parts leads to higher costs, and the scarcity of skilled labor further compounds the issue, increasing repair expenses that are passed onto vehicle fleets.

• Rising Vehicle Prices: Amid supply chain challenges, including the scarcity of parts and the increasing cost of parts, the cost of new vehicles is on the rise. These pricier vehicles, coupled with their increased repair costs and newer complex technology that is even harder to repair, contribute to higher insurance premiums.

• Increased Climate Change-Induced Claims: As climate change triggers more severe and frequent storms, insurance claims surge. Insurance providers have already seen an increase in climate change-related claims and they anticipate even more damages to come, prompting them to raise premiums in preparation.

• Driver Shortages: Commercial industries are facing driver shortages, leading to hiring and using new, inexperienced drivers to make up for the loss of more experienced ones. This influx heightens accident risks, subsequently driving up fleet vehicle insurance rates.

While we can’t precisely predict the future, all of these factors contributed to an increase in fleet vehicle insurance in 2023. Some of the issues related to these factors have improved, we haven’t seen a return to the past yet. As long as these problems persist, fleet vehicle insurance is expected to continue to rise into the next year.

What Can You Do?

If you want to save on your insurance, speak with an insurance agent who can provide you with ways to cut costs.. They can go over your policies and help you bundle to receive discounts or even look at new policies that can help you save money.

Another great step is to invest in fleet telematics with GPS tracking. Many insurance carriers offer discounts for fleets that use GPS tracking because it reduces liability and helps with providing evidence for claims. GPS tracking can also help you to reduce fuel costs and optimize your fleet in other ways, which can seriously help your bottom line.

Browse our LiveViewGPS website for GPS trackers for your fleet like the Fleet Tracker HW.

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