You’ve seen the increases in prices, just about everything is more costly than it was a year ago. While some inflation is normal, costs rising this steeply can hurt your business. Car insurance and fleet vehicle insurance have continued to climb as well and it’s expected to continue to increase into 2024. Below, we’ll dive into some reasons that could affect whether fleet insurance will continue to go up next year and what you can do about it as a fleet owner or manager.
What’s Causing Fleet Vehicle Insurance to Increase?
Inflation is a main cause of the rise in fleet vehicle insurance that influences (and in some cases is caused by) all of the reasons below. Inflation is the process of a currency losing value. Problems with the supply chain, increased industry costs, and worker shortages can all contribute to inflation. Here are other reasons that fleet vehicle insurance may continue to rise in 2024.
GPS Tracking for Wrecking Service Companies
31 Oct 2023Wrecking service companies are vital when cars get totaled and need to be taken off the roadside and to a junkyard or sold for parts. Regardless of how much damage any vehicle has sustained, wrecking service companies can help transport junk vehicles.
The wrecking service industry isn’t going anywhere, but there’s always competition and high costs to deal with, both of which can drive wrecking service companies into the ground if they’re not careful.
One way wrecking service companies have been cutting costs, optimizing their businesses, and rising above the competition is by utilizing GPS tracking technology for their vehicles.
If you’re a fleet manager, you’re always on the lookout for fluctuations in costs to look for ways to save money or prepare the business for higher prices. One of the major costs of any fleet is fleet vehicle insurance.
In 2023, auto insurance costs are already on the rise, making it a challenge to support the bottom line. According to the Bureau of Labor Statistics, motor vehicle insurance costs rose 17.8% from July 2022 to July 2023. If that wasn’t bad enough, auto insurance costs are expected to continue to rise by 8.4%.
Below, we’ll go over the 5 main reasons why fleet vehicle insurance will continue to rise next year.
