How Businesses Can Protect Themselves From Rising Commercial Auto Costs

Commercial auto insurance is one of the biggest expenses for many businesses in Georgia. With prices climbing each year, it has never been more important to keep claims off your policy whenever possible. Even a single loss can push premiums sharply higher, or in some cases, make a business uninsurable with competitive carriers. There are several practical ways to reduce claims and protect your bottom line.

How to Keep Claims Off Your Policy

There are a few simple steps that can significantly reduce the likelihood of small or avoidable accidents. Raising your deductible can help discourage minor claims and keep your policy clean. Claims should be reserved for significant losses that would be difficult for the business to absorb. It is also important to review motor vehicle records for every employee who drives a company vehicle. MVR checks help you identify risky drivers before they can create larger problems for your business. Finally, implementing a fleet safety program is one of the most effective steps you can take. A strong safety program teaches drivers how to operate company vehicles, maintain them properly, prevent accidents, and report incidents the right way if they occur. At Craddock Insurance, we can help you implement these practices and guide you through a full risk review to ensure your policy truly matches your operations.

A Real-World Example of How One Claim Can Change Everything

To show how serious the impact of a single claim can be, here is a recent situation we helped a client navigate. A business received notice that its commercial auto policy was being cancelled following a claim. This surprised the owner because it was the first claim the business had ever filed. As we looked deeper, we discovered that a financing mistake from their previous agent at the beginning of the policy term was also being counted against them. The result was a sudden cancellation with only two weeks of notice. Half of that time fell over Thanksgiving week when offices were closed, which left the business with only one week to find a new policy before the cancellation date over Thanksgiving weekend. To make matters worse, the claim, although small, had not yet been closed by the adjuster. Every competitive carrier we approached denied the account because the open loss made the business appear high risk. The company was left with no choice but to accept a premium that more than doubled. This experience shows how difficult commercial auto insurance can be, especially when a business does not have the right support or a clean loss history.

Why Having the Right Risk Advisor Matters

This story highlights two important truths. First, avoiding preventable claims is essential when the market is already pushing prices higher each year. Second, when something does go wrong, you need an advisor who can help you navigate the situation quickly and accurately. Having an agent with carrier relationships, risk management resources, and experience with complex situations gives your business a significant advantage. It can be the difference between staying with a competitive carrier or being forced into a much more expensive alternative. If you are unsure whether your current agent has the tools and expertise your business deserves, feel free to reach out below. We can help build fleet safety programs, review your risk strategy, and provide support when things do not go according to plan.