Skyrocketing premiums, legal unpredictability, and insurer exits are upending the trucking insurance market – and brokers who don’t adapt are putting clients at risk.
According to Kenny Planeta (pictured), a transportation broker at Heffernan Insurance Brokers, the old playbook is no longer working. “The rate squeeze is dramatic,” Planeta said. “Insurance rates have skyrocketed while driver pay, equipment costs, and fuel costs have all increased. Freight rates, on the other hand, haven’t moved much.”
That margin pressure has become existential for many fleets. “I had a 10-year client recently decide to sell his business,” he said. “That kind of call comes in monthly now.”
Planeta pointed to a liability environment where unpredictability – not claim severity – is inflating costs.
“I recently sat in on a mediation for the first time in 20 years,” he said. “Watching a minor accident with minor injuries turn into a $275,000 payout – where I expected maybe $25,000 – was eye-opening.”
Insurers, he said, are increasingly settling to avoid the risk of a runaway jury verdict. “It’s cheaper and safer for insurers to settle than risk a jury verdict, especially in unpredictable jurisdictions like San Bernardino County.”
And that behavior isn’t about profit margins – it’s about survival. “Insurers aren’t getting rich – they’re just avoiding disaster,” Planeta said.
The shrinking pool of willing carriers means brokers can no longer rely on fallback options for tough accounts. “You have to start early,” Planeta said. “Review claims early and often. Don’t wait until 60-90 days out.”
Preparation now means more than timing – it means precision. “What happened, why it happened, and how it won’t happen again,” he said. DOT safety scores, inspection records, and loss explanations must be complete and clean. “Underwriters decline incomplete or loss-heavy accounts fast.”
Even shopping around can backfire. “You can’t market every account – it strains relationships and your resources,” he said. “Scrambling leads to doubled premiums and can put clients out of business.”
Despite the challenges, some fleets are thriving. According to Planeta, they tend to share three traits: strong claims history, consistent safety performance, and early, strategic broker engagement.
“Group captives are now accessible to smaller fleets due to premium increases,” he said. “The fleets that have their act together are getting into the ultra-preferred underwriting box.”
He cited a 50- to 60-truck client who has maintained flat rates with the same insurer for five years. “We don’t take him to market every year – we talk to underwriters early and get what we need to avoid shopping,” he said.
By contrast, the norm is 25% increases despite shopping 10 underwriters. “Leverage comes from being clean, desirable, and consistent – not from rate shopping every year.”
Rushed or inaccurate submissions are costing fleets real money. “A 25% rate swing on a $400,000 premium is $100,000,” Planeta said. “This isn’t about small money.”
He’s seen late-stage surprises – including outdated driver rosters and retroactive equipment disclosures – sink deals.
The gap between good brokers and everyone else, he said, is market intel. “Truck insurance is so niche and volatile that generalists are usually behind.”
Planeta works to correct common misperceptions – chiefly, that carriers are profiting from high premiums. “Insurers aim for a 55-60% loss ratio to be profitable,” he said. “So if you pay $500,000 and have $400,000 in claims, that’s not $100,000 profit. It’s a loss.” He often walks clients through captive models to make the math real.
And while many fleets tout safety programs, they often miss how they’re actually scored. “Insurers use internal scoring systems now that aren’t public,” he said. “Being on a market’s ‘want’ list is everything.”
Shopping around every year can do more harm than good. “That approach floods underwriters with inconsistent submissions from multiple brokers,” he said. “It wastes time and blocks the best brokers from securing quotes.”
Planeta’s approach? One broker, one strategy, no distractions. “The best deals come from working with one broker who knows the market, has a strategy, and submits clean, compelling applications to the right underwriters.”
He backs it up with transparency. “I educate clients with emails, examples, and full transparency,” he said.
In this market, survival takes more than coverage. It takes discipline. “The biggest mistake is waiting until the last minute,” he said. “And the cost of that mistake isn’t theoretical – it’s putting clients out of business.”
