Commercial Auto Insurance: Challenges and Strategies for Brokers

The commercial auto insurance sector stands out in an otherwise softening insurance market in the United States, presenting unique challenges for brokers who must demonstrate why specific fleets deserve favorable treatment.

According to the Council of Insurance Agents & Brokers, commercial auto insurance premiums rose by an average of 4.5% in the second quarter of 2026. This increase is outpaced only by umbrella coverage among major lines. In stark contrast, commercial property and casualty premiums decreased by an average of 2% across all account sizes. This widening disparity underscores the pressure from large jury awards following commercial auto accidents, affecting auto and umbrella insurance capacities.

Financial Strains and Underwriting Challenges

Despite a marked improvement, AM Best reported commercial auto insurance experiencing an underwriting loss of approximately $1.9 billion in 2025, down from a $4.9 billion loss the previous year. The line's combined ratio was 103.5, with liability losses offsetting physical damage gains. Brokers are thus required to employ more strategic approaches during renewals to deal with these challenges.

"Telling a good story is just not going to work," Foa told Insurance Business.

Foa emphasized the importance of tangible evidence, such as logs, procedures, and maintenance records, in demonstrating a fleet's operational quality to underwriters. He noted that these outcomes increasingly depend on an operator's ability to showcase robust safety controls. Fleets with comprehensive safety programs, skilled drivers, and well-maintained vehicles—with the ability to document such practices—might experience stable or slightly reduced insurance rates.

Market Dynamics and Data Utilization

The American Transportation Research Institute (ATRI) study in May detailed why the insurance sector remains discerning even in a loosening market. ATRI found that liability insurance costs for motor carriers increased by 18.6% between 2021 and 2024, reaching 10.2 cents per mile—a figure that exceeded consumer inflation by 5.4 percentage points. Even though the incident rate for heavy-duty truck crashes decreased by 2.6%, the severity of losses ramped up by 33.1% per mile for surveyed fleets.

Additionally, the cost of excess insurance has sharply risen. Per-mile premium costs for the $5 million to $10 million coverage tier increased by 34% from 2021 to 2024, and costs for the $10 million to $15 million segment surged by 45%. This increase occurs amidst challenging operational conditions, with ATRI's study indicating a 3.4% rise in the average cost of operating a truck, which reached $2.336 per mile in 2025. Some high-risk tractor-trailer accounts face premiums ranging from $30,000 to $50,000 per unit.

Forward Strategy for Brokers

The availability of increasingly granular data complicates efforts by operators with poor safety records to present nominally appealing submissions. Underwriters now parse through Department of Transportation records, vehicle inspections, driver infractions, and other data sources like telematics and camera systems. Logs from driver-facing cameras are also scrutinized to assess alert generation and management responses.

• Telematics and camera systems provide real-time data to underwriters.
• DOT records and vehicle inspections highlight safety compliance.
• Driver infraction histories impact underwriting decisions.

This enhanced scrutiny requires early preparation for renewals by brokers dealing with fleets with suboptimal safety records. It is critical to start these discussions early to have ample time for clients to implement and demonstrate effective safety controls.

Foa suggests initiating proactive discussions on immediate, documentable safety measures. This can convince underwriters of a company's active safety culture, giving well-managed fleets some leverage in the market. However, preferential treatment now heavily depends on brokers and clients aligning with these market standards.