The trucking industry has faced a rollercoaster ride, booming during the early stages of the COVID-19 pandemic and then entering a downturn that some believe has evolved into a freight recession. This fluctuation has presented numerous challenges for carriers and has also left its mark on the insurance industry. This article explores the insights from a recent conversation with Stephen Ritzler, team lead of trucking and logistics at insurance provider CoverWallet, on how these shifts have impacted trucking insurance.
The recent cycles of boom and downturn in the freight industry have sent ripples through the trucking landscape, touching everything from small carriers to insurance rates. In a conversation with Jason Cannon and Matt Cole on the weekly episode of 10-44, Stephen Ritzler of CoverWallet unravels the complexities of the current situation, offering insights into the insurance sector’s response and practical advice for drivers and carriers.
The Freight Recession and Its Impact on Insurance Rates
The current freight recession has led to a disparity between freight and available capacity, complicating business for carriers of all sizes. This section explores how these changes have affected truck insurance premiums, the role of rookie mistakes in driving up costs, and the strategies that carriers are employing to stay afloat.
Small Carriers Going Out of Business
Many small carriers have felt the pinch of the recession and have been forced to close or consolidate. This section looks at how the commercial truck insurance industry has adapted to these changes, with a particular focus on the remarketing strategies and challenges that arise from carriers going under.
Successful Strategies for Small Carriers
Despite the bleak outlook, some small carriers have found ways to survive and thrive. By viewing deductibles as cash reserves, self-insuring to some extent, and employing concentration strategies, these savvy operators are weathering the storm.
Emerging Technologies and Nuclear Verdicts
The rise of nuclear verdicts has put the spotlight on emerging technologies such as dual-facing cameras. This section explores how these technologies are becoming essential insurance requirements and how they are helping in fighting fraudulent claims and nuclear verdicts.
Advice for Carriers on Saving on Premiums
Insurance is a critical component of a carrier’s business, but it needn’t be a burdensome cost. Stephen Ritzler offers key recommendations for understanding and negotiating truck insurance costs, including knowing your numbers, researching, and exploring options for reducing coverage to federal requirements if needed.
Learn more at the cheapest commercial truck insurance companies
The current freight recession is a multifaceted challenge that has extended its reach into the insurance industry. Through careful management, leveraging technology, and employing smart strategies, carriers can navigate these uncertain times. The insights provided by Stephen Ritzler not only shine a light on the current state of the industry but also offer practical guidance for those seeking to make the best of a complex situation. The conversation is a valuable resource for anyone involved in trucking, and it serves as a timely reminder that adaptability and innovation are key to survival in a rapidly changing landscape.