Insurance Premiums Surge While Carriers Brace for Montgomery Impact

Key Details The American Transportation Research Institute released new data showing commercial truck insurance premiums have climbed significantly over the past several years. The spike comes as the industry watches the Montgomery vs. Caribe Transport II ruling, which could hit 3PL companies harder than carriers themselves. Why Premiums Are Rising Crash rates have increased substantially since 2009, with the pandemic creating temporary dips in both fatal and non-fatal incidents. However, the overall trend shows crashes remain elevated compared to pre-2010 levels, driving insurers to raise rates across the board. Two main factors are fueling claims: distracted driving continues to be a serious concern, and an influx of inexperienced drivers during the early 2020s boom has increased both claim frequency and severity. The Bottom Line for Insurers Interestingly, insurance companies aren't profiting from higher premiums. Their combined ratio - the metric showing whether they're operating profitably - has exceeded 100 every year since 2014, meaning they're paying out more in claims than collecting in premiums. For drivers and carriers, this creates a challenging cycle: rates keep climbing while insurers remain unprofitable, suggesting further increases may be inevitable.