Factors that influence my auto insurance premiums

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Rising prices, including the cost of insurance required to protect your business, are impacting everyone. As you may have experienced, the cost of insurance claims continues to rise and it’s important that you’re aware of how this impacts your insurance coverage and what you can do to help control costs going forward. While not all of the cost drivers are within your control, it’s important for you to understand what you can do to control your insurance costs: 

1. Adopt a safety-first culture: Your overall attention to safety strongly influences your claims experience. Maintaining a safety-first culture in your business, including providing regular safety training to your employees, is crucial to protect your bottom line. You should review your Netradyne signals to provide safety coaching and feedback to minimize accidents.
2. Report claims in a timely manner: The sooner you report claims for your business, the quicker they can be resolved, which helps avoid potential costly increases resulting from longer settlement timelines.
3. Hire & retain experienced drivers: Your business's ability to hire and retain experienced drivers with good safety records results in a positive impact on your operations, including strengthening a safety-first culture. Retaining your best drivers also helps you potentially avoid an increase in insurance premiums.

All of these factors influence your “loss experience,” which insurers use to measure your future potential of accidents and which is one of the critical factors in pricing your insurance policies. By creating a safety-first culture and reporting claims in a timely manner, you can minimize the overall cost of your insurance. Marsh’s customized performance dashboard provides you with insights on your loss experience (safety scores, claims frequency and timely reporting of claims) and tips to improve the factors within your control. Log in to your performance dashboard today.

We recognize that even when you manage the factors within your control, there are still macroeconomic factors that impact the cost of your insurance. Just like the broader economy, inflationary cost pressures are influencing the cost of insurance, including the cost to repair vehicles and medical costs. In addition, the insurance industry is facing even higher pressure from social inflation, that is, the effect of juries returning higher verdicts than in years past, which is outpacing the general rate of inflation. Social inflation is another reason it’s critical for you to report your claims in a timely manner. The longer a claim is unmanaged, the more likely it is to have attorneys involved, which increases claim costs.  

Have additional questions?

We know insurance can be confusing at times. Your dedicated Marsh account management team is here to help you answer questions. Feel free to contact Marsh today.