New Hires Carry More Risk

 

Why Hiring Comes with a Bigger Insurance Bill

Hiring should be a good thing. You’re growing. Adding trucks. Picking up freight. Building your team.

But the second you bring on a new driver, your insurance carrier gets nervous. And now, they’ve got the data to back it up.

When questioned on renewal increases, underwriters are telling us renewal increases are not only due to state approved rate increases, inspection history, losses, etc., per the norm.  This year adding 1 truck has been considered explosive growth and that new hire driving? The icing on the cake. 

New data shows: Drivers are more likely to have an accident during their first two years with a new carrier. It doesn’t matter how long they’ve had their CDL or how clean their record is. If they’re new to your operation, they’re higher risk and the price tag on that risk is carrying sticker shock.

It’s not about bad drivers. It’s about new ones.

Even experienced drivers need time to get used to different equipment, routes, customers, and dispatch styles. That adjustment period is when things go wrong. And insurers are seeing it happen enough to start pricing for it.

They’re not just guessing. They’re watching loss ratios climb in the first 24 months after hire.

Naturally, when you grow, you’re adding exposure, not just revenue. More trucks. More drivers. More chances for something to go sideways. And if your roster shows multiple recent hires, don’t be surprised if your renewal shows a higher rate.

Insurance companies call it predictive modeling. 

You can avoid the learning curve, because now you know.  Keep accurate driver files, including the date of hire. Make your onboarding clear. Keep clean logs. Show you’re setting expectations early and checking performance often. You won’t erase the risk, but you can control the narrative.

Truck U Take

New drivers bring risk. That has always been the reality. From the insurance angle, now we have numbers based on pure facts.  Agents and motor carriers alike can rant and rave, but this is happening and you can’t plan for it if you don’t know.

We have seen far too many carriers shut down after growing too fast and being outpriced by insurance, deaf to insurance agents’ warnings and recommendations. 

 Smart sustained growth does not damage the future of your company.

This year more than ever, it has become clear that while the trucking industry may never stop, we do need to slow down.  Plan your growth, properly vet & train drivers, maintain equipment, keep an eye on DOT inspection results.    

If you are in this for the long haul, you’ve got to treat every addition to your team like it matters…because the data says it does. But really, don’t we already know that?

Hiring drivers and worried about your renewal? We’ll help you explain your growth in a way that makes sense to underwriters. Real structure. Real savings.
254-294-7798
info@trucku.biz

 

Disclosure
This post is for educational purposes only. It’s not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it.

All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.