Navigating the Freight Recession: The Impact on Trucking Insurance

Thang Truong
Thang Truong
Updated on:

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

Closing Paragraph

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.

Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at realtor.com, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

Best 9 Box Truck Business Ideas for 2024

The entrepreneurial spirit thrives on innovation, finding niche markets, and capitalizing on trends. For those with a sense of adventure and a box truck at their disposal, a world of business opportunities await. Box trucks, given their spacious interiors and versatility, serve as ideal platforms for numerous ventures. Here, we delve into the best 9 […]

Top 9 Grants for Trucking Businesses in 2023

Trucking continues to be a robust sector, weathering global challenges like the COVID-19 pandemic. The surge in demand for goods transportation, fueled by businesses and individuals, puts trucking companies in a key position for growth. If you’ve considered launching a trucking business, there are trucking grants available that can help kickstart your venture. Understanding Trucking […]

Milepost Joins Truckstop: A New Dawn for Commercial Truck Insurance

The trucking industry is about to witness a significant shift in how insurance policies are procured, managed, and serviced. Milepost Insurance Agency LLC, a renowned Berkshire Hathaway enterprise, has recently collaborated with Truckstop, thereby pioneering a new era in trucking insurance for independent owner-operators. Revolutionizing the Insurance Experience The primary aim behind this dynamic partnership […]

Escalating Costs in Trucking Litigation: Navigating the Crisis

The American trucking industry, a crucial cog in the nation’s economy, is currently navigating treacherous waters. Over the past decade, the landscape of trucking litigation has seen a tumultuous shift, with settlement amounts and jury awards skyrocketing to unprecedented levels. This alarming trend, intensified by evolving legal tactics and the ripple effects on insurance, threatens […]

The Nuances of Fleet Insurance Policies in Employment Contracts

Truck fleet insurance policies offer comprehensive coverage to designated groups such as employees. However, challenges surface when an employee’s eligibility for this coverage changes mid-employment. A recent case in the Canadian Industrial Relations Board, Lewis v. Whiteline Trucking, delves into the intricacies surrounding this situation and sets a precedent for employers and their contractual obligations. […]

Trucking Industry Facing Increased Claims Amid Economic Strains

The trucking industry is grappling with a rise in fire and theft claims amidst economic strains, higher insurance costs, fuel prices, and driver shortages. This unsettling trend, reminiscent of past recessions, raises concerns over fraud and foul play, as well as the challenges in risk mitigation and claim adjustments. The insights of Stacy Bradshaw, the […]

A Cross-State Battle: How California’s Emissions Standards Impact Pennsylvania’s Trucking Industry

The story of Brian Wanner and his family-run trucking company, Peters Brothers, Inc., reveals a complex struggle between state regulations, business interests, and environmental considerations. Located in Pennsylvania, Peters Brothers is facing challenges from California’s stringent emissions regulations due to a decades-old rule that required Pennsylvania to comply with California’s standards. Here’s how this legislation […]

Regulatory Changes and Rising Commercial Truck Insurance Costs in California

In the wake of the passing of California’s AB5 bill, the trucking industry, including drivers and insurers, face unforeseen challenges. The legislation threatens to severely disrupt contractual trucking gigs, leading to rising insurance costs and potential operational changes. AB5 – A Potential Setback for Owner-Operators AB5, signed into law by Governor Gavin Newsom in 2019, […]

Navigating the Complexity of Insurance Coverage in Florida Truck Accident Cases

Understanding the nuances of insurance coverage is an integral component of personal injury cases, more so in truck accident lawsuits. In these cases, the complexity can intensify due to multiple stakeholders, including various insurance carriers. As Florida operates under a “no-fault” insurance system, comprehending its implications, the role of insurance companies, and how to navigate […]