December 18, 2025
Nuclear Verdicts, Rising Costs, and the New Reality of Motor Carrier Insurance
The motor carrier insurance market remains one of the most challenging environments the trucking industry has faced. Persistent premium increases, shrinking capacity, nuclear verdicts, and stricter underwriting standards continue to put pressure on fleets of all sizes.
At Reliance Partners, we work alongside motor carriers every day to help them navigate these realities. Recently, our Executive Vice President of Sales, Jackson Alexander, shared insight with FreightWaves on the forces shaping today’s insurance landscape – and what carriers must do to stay competitive and insurable.
Nuclear Verdicts Are Driving the Market
Nuclear verdicts have become one of the most significant drivers of insurance cost and availability. Since 2012, verdicts exceeding $1 million have increased by more than 235%, dramatically shifting how insurers evaluate risk.
For fleets, this has elevated the importance of proactive safety management. Preparation, documentation, and prevention are no longer best practices—they are underwriting requirements.
Reliance Partners’ in-house Safety Impact Team, made up of former state patrol officers, DOT inspectors, and insurance loss control professionals, works directly with clients to strengthen safety programs, improve CSA scores, and implement defensible risk management practices that stand up to scrutiny.
Carriers that demonstrate a proactive approach to safety are consistently better positioned when incidents occur and when underwriters evaluate risk.
Technology Is Now a Requirement, Not an Option
The underwriting process has evolved rapidly. What were once optional incentives—such as telematics sharing or in-cab cameras—are now increasingly required just to receive a quote.
Many insurance providers now mandate:
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Telematics data sharing
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In-cab camera systems
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Collision avoidance and monitoring technology
Fleets that choose not to adopt these tools are finding themselves excluded from preferred markets altogether. Technology-backed data has become a critical component of how insurers assess safety performance and long-term viability.
Capacity Remains Limited
Auto liability capacity remains constrained, forcing insurers to be highly selective. To access competitive programs, fleets must meet a narrow set of underwriting criteria, including:
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Favorable loss history
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Strong CSA scores
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A qualified and stable driver pool
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Documented safety procedures
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Consistent use of safety technology
Missing any one of these benchmarks can significantly limit options in today’s market.
Why More Fleets Are Exploring Captives and Higher Retentions
Commercial auto liability has been unprofitable for insurers for 14 consecutive years, creating sustained upward pressure on rates across the industry.
As a result, many well-managed fleets are exploring alternative strategies, including:
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Group captive insurance programs, which allow rates to be driven by member performance rather than market volatility
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Higher deductibles or retentions, enabling safety-focused carriers to assume more risk in exchange for greater long-term control
These approaches reward disciplined risk management and allow fleets to better align insurance costs with their actual safety performance.
A Mixed Outlook Across Other Coverage Lines
While auto liability remains the most challenged line, other coverages present a more balanced picture:
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Excess liability continues to experience pressure due to nuclear verdict exposure
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Auto physical damage has remained relatively stable
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Cargo insurance is seeing increases driven by theft and fraud trends
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Workers’ compensation and occupational accident coverage remains one of the few consistently profitable lines, often resulting in flat or reduced pricing
What This Means for Motor Carriers
Today’s insurance environment demands excellence across every dimension insurers evaluate. Fleets must invest in safety, embrace technology, maintain compliance, and actively manage loss history to remain competitive.
At Reliance Partners, we help carriers take a comprehensive, strategic approach to insurability—aligning safety, data, and coverage strategy to support long-term success in a difficult market.
Read the full article from our friends at FreightWaves.
