Why Are Auto Liability Rates Rising?

3 Mitigation Techniques For Lowering Your Costs

For the past few years, combined ratios for commercial auto liability have run between 100 and 110 percent. In the current low-interest rate environment, rates this high imply unprofitability and capital destruction for commercial auto liability carriers. Underwriters need combined ratios in the low to mid 90s to reach target levels of profitability, so they are raising premiums.