I wanted to update you about why the cost of insurance for business vehicles has been going up a lot recently. It seems like a bunch of different things are making insurance more expensive. Let’s break it down:
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Injuries and Accidents: From 2018 to 2022, the costs from accidents where people got hurt jumped up by 40%. Even though there were fewer accidents, the ones that happened were more serious, with more fatal crashes, bigger legal payouts, and medical bills just keep going up. In fact, they think medical costs will go up by 7% in 2024, making things even more expensive for both insurance companies and us who buy insurance.
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Lawyers Getting Involved: Nowadays, when accidents happen, lawyers are often brought in, and this makes the cost of medical care and treatments go up. If businesses manage their vehicle fleets better, they might avoid some of these extra costs.
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Distracted Driving: People using phones or other gadgets while driving is causing a lot of problems. A study found that 30% of businesses had accidents because their drivers were distracted by phones. Also, there’s been an 18% increase in deaths from accidents that could have been avoided since before the pandemic. Companies really need to make sure their drivers stay focused on the road.
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New and Inexperienced Drivers: With a lot of experienced drivers leaving their jobs or retiring, companies are hiring new drivers who aren’t as familiar with driving big commercial vehicles or the routes. This leads to more accidents. Finding drivers who are really good and careful is key to keeping things safe.
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Fixing and Replacing Vehicles Gets Pricier: Cars and trucks with all the latest tech are great, but they’re also more expensive to fix or replace if they get into an accident. Plus, there’s a shortage of people to do the repairs, and the price of car parts and dealing with car thefts are making insurance claims costlier.
In short, the world of business vehicle insurance is changing a lot because of higher medical bills, more tech in cars, and issues with drivers and accidents. To handle these challenges, businesses need to be on top of managing risks, making sure their drivers are safe, and keeping an eye on costs.