Why truck crashes are down but premiums are rising.

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Why truck crashes are down but premiums are rising.

The past five years have seen enormous progress in reducing fatal truck accidents, with deaths from heavy vehicle crashes down 20%.

But the good news for truck operators has not translated into lower premiums for heavy vehicles, and further increases in premiums are expected.

Crashes involving both articulated and rigid trucks have fallen by 13% in the past five years, according to data from the Bureau of Infrastructure, Transport and Regional Economics.

Its latest bulletin of fatal heavy vehicle crashes for the 2011/12 financial year shows that 225 people died in 200 crashes during the period.

National Transport Insurance (NTI) CEO Tony Clark says the industry has done significant work on improving safety systems and driver behaviour, and the official figures are supported by NTI’s own research into major accidents.

While NTI agree the ratio of heavy vehicle claims to vehicles is near an all-time low, the average annual costs of accidents has risen by 20% in the past three years.

NTI indicates premiums will almost certainly continue increasing.

Claims from very large vehicle accidents can include the cost of cleaning-up fuel spills, and often involves damage to other parties’ property as well as infrastructure such as roads. In addition the cost of the damage to the trucks has risen as well.

Claims for accidents involving smaller, short-haul trucks are increasing, although the average claims cost is rising by a lesser amount.

VeriSure’s Say :

Despite the predictions of gloom the Insurance Market is still quite competitive in the Heavy Motor Fleet space. Underwriters are looking for those well run Fleets with competent Risk Management and low Claims Ratios over specific periods.

If you’re current Insurance Broker is not performing in this area and shows lack of innovation perhaps it’s time to consider alternative solutions to achieve what you believe is reasonable.

Action Plan :

VeriSure are Specialists Risk Advisors.

Our commitment to providing the very best Policy Terms and Conditions at the most competitive Premium together with our professional Claims Advocacy is paramount.

Contact us for an extensive Risk Assessment today.

Knowledge then Security.