With the outgoing CA Insurance Commissioner, it was common knowledge that his Dep’t. rubber-stamped rate increase requests of 6.9% or less, only scrutinizing rate increase requests of 7.0% and above. I am waiting to see how the incoming CA Insurance Commissioner, Ricardo Lara, responds to rate increase requests. I agree that the entire Commercial Auto sector needs to take more rate. There is also a gap in the marketplace, needing more carriers to cover the LMD/Last Mile Driven (Amazon, OnTrac, SCI, etc.) risks.
The Commercial Auto Liability market will continue to increase year over year until the country as a whole levels the playing field. Commercial Auto has long had to sacrifice itself for the personal auto policy holders in our country who carry minimum or inadequate limits. There is a push to increase the minimum AL limits for commercial motor carriers in the US today, this will further destruct the system unless a reasonable minimum auto limit is also imposed on personal auto policy holders. These minimums, set individual by each state, should be normalized throughout the country despite what each state desires to do, and never should a vehicle be going down the road with less than $500k AL and I would push for $1Mil. According to myriad studies by the American Trucking Associations and others, 75% or more of the commercial auto tractor-trailer accidents are caused by a personal auto vehicle. The personal auto market and its policy holders should be made to pay their part by requiring these policies to have large enough limits to defray the costs the commercial auto market has to pick up due to uninsured and/or underinsured claims.
With the outgoing CA Insurance Commissioner, it was common knowledge that his Dep’t. rubber-stamped rate increase requests of 6.9% or less, only scrutinizing rate increase requests of 7.0% and above. I am waiting to see how the incoming CA Insurance Commissioner, Ricardo Lara, responds to rate increase requests. I agree that the entire Commercial Auto sector needs to take more rate. There is also a gap in the marketplace, needing more carriers to cover the LMD/Last Mile Driven (Amazon, OnTrac, SCI, etc.) risks.
The Commercial Auto Liability market will continue to increase year over year until the country as a whole levels the playing field. Commercial Auto has long had to sacrifice itself for the personal auto policy holders in our country who carry minimum or inadequate limits. There is a push to increase the minimum AL limits for commercial motor carriers in the US today, this will further destruct the system unless a reasonable minimum auto limit is also imposed on personal auto policy holders. These minimums, set individual by each state, should be normalized throughout the country despite what each state desires to do, and never should a vehicle be going down the road with less than $500k AL and I would push for $1Mil. According to myriad studies by the American Trucking Associations and others, 75% or more of the commercial auto tractor-trailer accidents are caused by a personal auto vehicle. The personal auto market and its policy holders should be made to pay their part by requiring these policies to have large enough limits to defray the costs the commercial auto market has to pick up due to uninsured and/or underinsured claims.