Truck Insurance Premiums Surge 8.3% Annually as Providers Lose Money

S. 9% during the same period. Despite this surge, insurance providers remain unprofitable, with combined ratios exceeding 100 every year since 2014 (except 2021), meaning insurers are paying out more in claims than they collect in premiums. This structural profitability crisis is driving insurers to reduce coverage limits, exit markets entirely, and continue raising rates to offset historical losses.

6 cents per mile for carriers operating over 1,000 trucks. 5% increase in per-mile premiums between 2020 and 2024. The primary drivers of this trend include rising crash rates since 2009, an influx of inexperienced drivers hired during the pandemic freight boom, distracted driving, and "social inflation"—the expansion of litigation costs driven by plaintiff-friendly regulations, widespread attorney advertising, and aggressive litigation tactics. Notably, the 3PL insurance market faces even greater uncertainty due to potential regulatory changes from the Montgomery vs.

Caribe Transport II case, which could add another layer of cost pressure to an already-stressed logistics ecosystem. For supply chain professionals, this represents a structural headwind that cannot be easily hedged or negotiated away. With insurers operating at a loss for over a decade, the probability of further rate increases remains high, and capacity constraints in the insurance market could force carriers to accept higher deductibles, lower limits, or coverage gaps—ultimately shifting risk exposure up the supply chain.