RTA Launches Lloyd's-Backed Physical Damage Program for Commercial Auto Insurance
The Reliable Transportation Association (RTA), serving as a managing general agent and Lloyd's of London coverholder, has expanded its commercial auto insurance offerings with the launch of a Physical Damage insurance program in the U.S., underwritten by Lloyd's. This new program provides coverage for fleets and owner-operators against physical losses such as collisions, theft, vandalism, fire, and weather-related damages, broadening the scope beyond the traditional commercial auto liability insurance. Initially available in key states including Pennsylvania, Ohio, New Jersey, California, Illinois, and Texas, the program is set to extend coverage to additional states like Georgia and Florida, with a nationwide rollout planned by the end of 2025.
The program emphasizes safety and operational responsibility by offering more competitive pricing to operators with clean motor vehicle records, positive loss histories, and operational stability, linking premium rates closely to safety data and claims history. This approach mirrors the underwriting appetite of the STAR Mutual RRG commercial auto liability guidelines while addressing the specific risks of physical damage exposures.
RTA's digital platform facilitates automated eligibility checks and instant quote indications, supporting agents with underwriters readily available to ensure swift and accurate underwriting decisions. This technology enhances efficiency, enabling same-day quoting and binding for most risks, promoting transparency and consistency in underwriting practices.
By eliminating financing fees and utilizing a data-driven pricing model, the program aims to deliver a streamlined financial and administrative experience, minimizing complexity for agents and insureds alike. Agents already appointed with STAR Mutual RRG can offer this coverage immediately without additional contracting, benefitting from competitive commissions aligned with RTA's commitment to its members.
This strategic initiative by RTA and STAR Mutual RRG reflects a broader trend in the commercial auto insurance sector toward leveraging digital tools for operational efficiency and customer-centric underwriting. It also underlines the partnership's focus on maintaining underwriting integrity while expanding product access and supporting agent-client relationships. As STAR Mutual RRG operates across 40 states, this physical damage program marks a significant enhancement in the product suite available to commercial transportation operators, backed by the financial strength and reputation of Lloyd's of London.