The rising cost of truck insurance in the US is starting to affect not only operating expenses, but also the future of fleets, GoCDL.us informs.
Insurance is eating up budgets.
Commercial auto premiums continue to rise, and for many carriers, this is already comparable to the lease payment for a truck. Money that used to go towards fleet renewal is now being spent on risk coverage.
Loans are becoming less available.
Banks and leasing companies are tightening their requirements: high insurance = increased risk. As a result, it is more difficult for carriers to obtain financing, especially for new MCs and small fleets.
Decline in orders for new tractors.
Manufacturers and dealers are reporting a decrease in interest in new trucks. Companies are preferring to operate older vehicles for longer periods, delaying upgrades and expansions.
A vicious cycle in the market.
Older trucks → higher accident rates → higher insurance costs → even fewer opportunities to update the fleet.
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Photo: Yan Krukau, Pexels