Accidents happen, and when they do, most expect to pay more for insurance. However, even the safest drivers are noticing an uptick in their monthly payments, and fleet owners are hit especially hard. Accident history is just part of the picture as far as rates are concerned. In this guide, business owners will learn several reasons they may be paying more for f in Murrieta CA.
Driving More
During the recession, companies everywhere scaled back. Manufacturers made less, sales calls weren’t as frequent, and deliveries slowed down as drivers lost their jobs. As the economy has improved, though, activity has increased. Rather than bringing in more drivers and purchasing new vehicles, many companies are increasing workloads for current employees. Vehicles are being driven more often, and mileage increases also elevate the risk of an accident.
Inexperienced Operators
The shortage of commercial drivers is increasing risks on the road. It’s quite a hard job to drive long distances every day, and many of the industry’s experienced operators are nearing retirement age. Furthermore, new rules are making the recruitment process even harder. For instance, many drivers don’t like the new electronic logs they’re forced to use because they require more inclusivity and accuracy in reporting. While the improving economy means more hiring, it also means a smaller talent pool, and those who do take the wheel are likely to be less experienced.
The Price of Fuel
There’s a direct link between the price of fuel and the frequency of accidents. When people pay more for gasoline or diesel fuel, they tend to drive less, so fewer accidents occur. Stable gas prices bring an increase in the number of vehicles on the road, and when there are more drivers in the same area, accidents become more likely.
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These factors and others increase the cost of insurance claims, which leads to higher monthly premiums for insured business owners. Fleet owners are most at risk, but any company using a vehicle may feel the effects. To save as much as possible on commercial insurance in Murrieta CA, call Barranca Insurance Services Inc. today. You can also connect them on Facebook.
