Commercial Auto Insurance in 2025: Market Trends and Policyholder Reviews

•  Commercial auto insurance premiums are projected to increase by 7–10% on average in 2025, building on several years of consecutive hikes. Some insureds—especially those with large fleets or poor loss histories—face double-digit increases, reduced capacity, and stricter underwriting.

•  Insurers have reported combined loss ratios above 100% for 12 of the past 13 years, meaning claims and expenses outpace premium income. This ongoing lack of profitability keeps the market challenging for both carriers and policyholders.

• Capacity and Coverage Restrictions: Insurers are becoming more selective, often reducing coverage limits or withdrawing from higher-risk segments. Businesses with adverse claims histories or significant exposures may find it harder to secure affordable coverage or excess layers.

•  The trucking and transportation industry faces a severe shortage of qualified drivers, leading some companies to lower hiring standards. This results in more inexperienced drivers on the road, which increases accident frequency and severity.

• Nuclear Verdicts and Social Inflation: Large jury awards (“nuclear verdicts”) and increased litigation have driven claim costs up by over $30 billion since 2012. Social inflation—rising legal costs and broader definitions of liability—continues to pressure insurer profitability and premiums.

• Inflation and Supply Chain Issues: High inflation, elevated repair costs, and ongoing supply chain disruptions contribute to higher claim severity and longer vehicle downtime.

•  Carriers and businesses are increasingly using telematics, GPS tracking, and driver monitoring tools to manage risk, improve safety, and potentially qualify for discounts.

• Regulatory and Legislative Changes: New safety training programs and federal initiatives, such as the DRIVE Safe Integrity Act, aim to address the driver shortage and improve safety standards.

•  To control costs, some businesses are reducing long-haul routes, using smaller vehicles, or focusing on local deliveries.

•  The rise in electric vehicles (EVs) introduces new risks and higher repair costs, prompting carriers to adjust underwriting and pricing strategies.

•  Most policyholders appreciate knowledgeable agents and the ease of starting or managing policies online. However, complaints about frequent rate increases—even without claims—are common across major insurers.

•  Experiences with claims are mixed. Some customers report slow or complex claims handling, while others praise fast settlements and helpful adjusters. The digital claims process is improving, particularly at Progressive and Nationwide.

•  Usage-based insurance programs, such as Progressive’s Snapshot ProView and Nationwide’s Vantage 360, are valued for offering fleet management tools and discounts for safe driving. Bundling policies and paying premiums in full can also yield savings.

•  Policyholders value customizable coverages, including hired/non-owned auto, rental reimbursement, and new vehicle replacement. However, some express frustration over limited coverage availability or unclear policy terms.

• “Progressive’s Snapshot ProView helped us lower premiums and manage our fleet, but our rates still increased at renewal.”

• “Nationwide’s Vantage 360 gave us real-time insights into driver behavior, but claims handling was slower than expected.”

• “GEICO offered the best initial rate, but the price jumped after the first year without any claims.”

•  Invest in driver training, telematics, and safety programs to reduce claims and qualify for discounts.

•  Be prepared to discuss your fleet’s loss history with underwriters and highlight improvements.

•  Due to frequent rate changes and tightening underwriting, comparing quotes each year is essential.

•  Brokers can help structure creative solutions, such as captives or higher deductibles, to manage costs in a hard market.

The commercial auto insurance market in 2025 remains challenging, with ongoing premium increases, stricter underwriting, and rising claims costs driven by driver shortages, nuclear verdicts, and inflation. Policyholders value digital tools, telematics, and strong customer service, but frequent rate hikes and complex claims processes are common pain points. Leading insurers include Progressive, Nationwide, GEICO, and several regional carriers, each with distinct strengths and weaknesses. Risk management, annual policy reviews, and leveraging technology are key strategies for navigating the current marke