Pricing and Market Trends The commercial auto insurance market has experienced persistent rate increases, primarily due to rising claims costs and underwriting losses. According to the CIBA Q4 2024 P&C Market Survey, commercial auto insurance premiums saw an average increase of 8.9% in 2024, continuing a multi-year trend of rising rates, 29 consecutive quarters of rate increases. (Council of Insurance Agents and Brokers, 2025) Insurers continue to cite nuclear jury verdicts, rising medical costs, increased vehicle repair expenses due to advanced technology, and more frequent severe accidents as primary contributors to premium hikes.
(Council of Insurance Agents and Brokers, 2025)
The Risk Strategies 2025 Market Outlook highlights that insurers are implementing stricter underwriting standards and reducing capacity in certain high-risk sectors. (Risk Stategies, 2025) This means that businesses with a history of claims or poor risk management practices may face even steeper premium increases or difficulty securing coverage. Losses in the Commercial Auto Sector One of the biggest challenges in the auto insurance market is the continued financial strain caused by high loss ratios. The 2025 Commercial Insurance Market Outlook from Zywave reports that commercial auto insurance has one of the highest loss ratios in the industry, with insurers paying out more in claims than they collect in premiums. Contributing factors include an increase in distracted driving incidents, higher repair costs, and legal settlements driving up claims expenses. Accidents are not the only cause of auto losses. They can include weather-related events such as fire, hail, and flood. Distracted driving, in particular, remains a critical issue. Data from the National Highway Traffic Safety Administration (NHTSA) shows that distracted driving-related accidents account
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