Trucking insurance rates are rising, and if you’ve been renewing policies over the past few years, you’ve probably noticed the shift. The good news is, you have more influence than you might realize. Carriers still want to write trucking business, but in a market where claim severity is rising, legal judgments are increasing, and risk is harder to predict, they’re under more pressure to evaluate accounts with greater precision. As a result, trucking insurance programs have become more data-driven, with eligibility and pricing tied closely to how well your operation manages risk.
While a more data-driven market may seem restrictive, it’s actually creating new opportunities for significant premium savings. By consistently generating digital signals that reflect what underwriters are looking for, you position your operation to access stronger markets, better pricing, and a more stable insurance program over time. In this article, we’ll break down the risk factors insurers evaluate, how those factors are measured, and how they affect both your pricing and eligibility.
What’s Impacting Trucking Insurance Premiums? 5 Factors
Every insurance company evaluates risk a little differently, but certain factors show up across the board. In the sections that follow, we’ll break down what each factor is, why it matters to underwriters, how it affects your pricing or eligibility, and where you have room to take action.
1. Driving History and Safety Record
Insurers closely evaluate your drivers’ safety performance using loss runs, FMCSA violations, and patterns in accidents or citations. The FMCSA Safety Measurement System tracks this data publicly through its CSA BASICs, which underwriters often use as part of their risk evaluation. A single incident won’t necessarily impact your rates. However, repeated issues like speeding, rear-end collisions, or equipment failures indicate a higher risk profile and often lead to higher premiums or limited market access.
Underwriters look for more than clean records; they want to see accountability. Operations that track violations, document training, and work to improve safety give carriers more confidence. These steps can lead to stronger pricing and improved placement within a transportation insurance program that fits the operation’s profile.
2. Radius of Operation
Longer hauls mean more time on the road and more exposure to potential loss. That’s why insurers group accounts by defined radius categories: local, intermediate, and long-haul. The further the distance, the greater the risk involved, and the higher the pricing tends to be.
In trucking, where miles are the business, cutting miles isn’t a realistic option. But underwriting around movement isn’t only about distance. Route consistency, overnight driving, and the types of roads traveled all influence how risk is viewed. If there’s any flexibility in how routes are structured, reviewing how your operation aligns with underwriting thresholds could open the door to more favorable terms.
3. Vehicle Type and Cargo
Most trucking professionals already understand that what you haul and what you drive affect your insurance. But in a tighter market, these details now play a larger role in determining not just pricing but also which programs you’re eligible for. Heavier units, specialized trailers, and certain cargo types like hazmat, perishables, or high-value freight can trigger higher coverage requirements and stricter underwriting. If you’re subject to federal filings, the FMCSA Insurance Filing Requirements lay out the liability limits that apply to different operations, ranging from $300,000 to $5 million.
What matters to underwriters is how well your equipment aligns with your operation and how clearly that shows up on paper. Carriers look beyond vehicle specs to see how loads are secured, how inspections are documented, and whether the setup makes sense for the freight. These are familiar practices, but when you use them to reinforce the quality of your operation, they become markers of insurability.
4. Driver Experience and Turnover
Insurers know how tough it is to find and keep qualified drivers, but they still weigh experience levels and turnover trends heavily when assessing risk. They look at how long drivers stay, how well they’re trained, and how closely their backgrounds match the cargo and routes assigned.
High turnover can suggest instability or weak internal controls, which may limit access to preferred markets. On the other hand, clear hiring standards, consistent onboarding, and strong driver retention send a message that your operation values safety and continuity. That confidence can directly influence pricing and eligibility.
5. Technology and Telematics
For many trucking professionals, telematics may still feel like a surveillance tool, but insurers see it as a data source. Carriers already use telematics-based assumptions to model risk, whether or not you’re actively sharing your own data. When you choose to proactively use tools like GPS tracking, speed monitoring, braking patterns, and vehicle diagnostics, you give yourself more control over how your operation is understood.
That transparency can reduce uncertainty, open the door to specialized programs, and support better pricing over time. Telematics doesn’t need to feel invasive when it’s used on your terms. In today’s market, it’s one of the clearest ways to show underwriters that your operation is actively managing risk.
FAQ About Placing Commercial Trucking Accounts
Placing trucking risks can raise a lot of questions. Here are answers to common questions brokers ask when placing high-risk or complex trucking accounts.
What is the minimum insurance for a trucking company?
The FMCSA requires a minimum of $750,000 in liability insurance for most for-hire trucking operations. However, that limit can increase based on the type of cargo being hauled. For example, carriers transporting hazardous materials may need $1 million or more in coverage. For full details, see the FMCSA Insurance Requirements page.
When should a trucking account be moved to the E&S market?
Some accounts are difficult to place in standard markets due to factors like poor loss history, new ventures, long-haul radius, or unusual commodities. Others may simply require filings or endorsements that standard carriers aren’t willing to support. The E&S market provides more flexibility for complex or higher-risk operations that fall outside standard underwriting appetite.
Why do complete submissions matter for trucking accounts?
Underwriters can’t price what they can’t see. A complete submission, including driver rosters, equipment lists, loss runs, safety protocols, and operational details, helps carriers evaluate the risk quickly and accurately. Missing or unclear information often slows down the quoting process and can lead to declined submissions or unnecessarily inflated pricing. It may feel like extra work to gather and maintain these details, but that diligence often results in more accurate, competitive rates.
What are common reasons trucking risks get declined?
Common issues include coverage gaps, unverifiable DOT history, missing filings, no documented safety program, or requests for unrealistically low premiums. In some cases, the problem isn’t the risk itself but the lack of clarity or credibility in how the risk is being presented.
How can brokers improve placement success with trucking risks?
A strong narrative can make all the difference. Brokers who provide accurate, detailed information and maintain open communication with underwriters increase their chances of success. Working with experienced transportation underwriters at Cochrane & Company can also help streamline placement and improve market access.
Place Your Trucking Risks
Got trucking risks? We’ve got solutions. Cochrane & Company offers access to a broad range of trucking insurance programs, including markets equipped to handle your best trucking accounts as well as your more complex or high-risk accounts.
Our transportation underwriters bring specialized expertise and long-standing carrier relationships to every submission, with a clear understanding of the filings, coverage requirements, and underwriting nuances that make this class of business so demanding. Turnaround is fast, communication is straightforward, and support is built into every step of the process. If you’re placing a trucking risk, we’re ready to help you move it forward.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.
