Some operators are finding that their insurance premiums are rising. Below are a few potential reasons why:

  • Insurers are being hit by supply chain issues and increases in raw material costs due to the war in Ukraine and Brexit.
  • Reinsurance is becoming more expensive due to inflation and rising interest rates.
  • Modern vehicles are more sophisticated, making repairs more expensive. Overall, the cost of repairs, labour and parts have increased, not helped by the shortage of skilled labour.
  • Long waiting times for new vehicles, resulting in the second-hand market taking off, has led to total loss settlements increasing.
  •  A reduction of insurers in the market offering coverage for Haulage Businesses.

Premiums are rising across all sectors and risk types. Where claims costs are rising, premiums invariably follow.

With the new Road Rules of Hierarchy introduced in January 2022, it is growing more difficult for Insurers to defend Claims.

Thefts from trailers are also on the rise, with certain roads becoming hotspots, such as the A14 corridor. In the first two weeks of November 2022 there have been 21 police theft reports and possibly many more that are unreported.

Other factors impacting premiums

Your Conditions of Carriage with your customer, the nature of your Business and if you undertake any ADR Operations.

International travel: Companies operating outside of the UK will face higher premiums due to the complications of Brexit and EU Law.

Haulage fleet policies typically restrict any young or inexperienced driver, but that said, RHA Insurance Services are proactively supporting the movement to introduce new blood into the industry. We regularly insure younger and inexperienced Class 1 and Class 2 drivers, often at no extra cost to the operator.

Naturally, accidents will affect insurance costs, as will your safety record. How much risk you present to underwriters is a key factor.

Cost savings are important, but the right investment, for example, in risk management solutions, can save you money, positively affect your Margins as well as potentially saving lives in the long term.

Manage your risk profile.

Insurance companies look more favourably on operators who are prepared to take pro-active actions in managing their risk. Risk management is predominantly about safety but with effective safety comes lower insurance premiums and wider profit margins.

Analysis of the vehicle’s tachograph data will ensure drivers aren’t working over the required hours, as tired drivers pose a risk. Worldwide, it is estimated that between 10% and 20% of all road crashes are fatigue-related according to Brake.

Telematics data enables transport managers to analyse vehicle speeds, application of brakes, how the vehicle is driven, and for how long, thereby identifying potential problem areas to then take appropriate action.

Good risk management protocol includes checking that drivers meet the necessary medical standards and have the correct licences. Do you test them to check their competence? It’s good practice to put drivers through regular safety courses.

The Safe and Fuel Efficient Driving Scheme (SAFED) is a supplementary driver development programme offered by the Government, designed to help improve the driving standards of hauliers and reduce accidents. The RHA also has a guide to funding for training .

Placing safety and responsible driving practices at the forefront of your business, whilst rewarding and incentivising those with good driving records, will help reduce accident frequency and severity. It can also reduce the risk of prosecution as well as avoiding a potential public inquiry.

RHA Insurance Services offer market leading insurance and risk management services to members across the UK. Our expert knowledge can save you money by highlighting ways to reduce claims and just as importantly, premiums. As a specialist haulage broker, we deal with a panel of insurers that fully understand the complexity of your industry.

We support RHA members with unrivalled experience and technical expertise in both the placement of your Insurance and handling your claims in house.

Get in touch with the RHA Insurance Services team on 0203 960 2944 or email