Take Control of Your Auto Coverage Costs

If commercial auto coverage costs are consuming a larger share of your organization’s budget nowadays, you're not alone. Rates have risen in 59 consecutive quarters, even when other commercial lines remained relatively stable, according to the Council of Insurance Agents and Brokers. Let's pull back the curtain on factors driving price increases and zero in on strategies for controlling your costs.

Violations and Collisions

• Traffic violations increased 13% between 2022 and 2025, while miles driven increased only 2%.
• Speeding remained the leading violation in 2025 across the country, while distracted driving skyrocketed 57% compared to 2022.
• A reportable crash occurred every 59 seconds on Texas roadways in 2025.
• One Texan lost their life in a vehicle collision every 2 hours 19 minutes last year.

Repair Costs

Advanced driver-assistance systems (ADAS): Modern vehicles rely on ADAS, cameras, radar, and sensors that require professional calibration, even after minor collisions. Those additional repairs can significantly increase claim costs. In fact, ADAS calibration appeared on nearly 35% of repair estimates in 2025, up from just 12% in 2022, according to Enlyte’s 2026 Envision Trends Report.

Total losses: More damaged vehicles are being declared total losses rather than repaired, largely because of rising repair costs and an aging vehicle population.

Tariffs: Repair costs are also being influenced by broader supply chain and manufacturing pressures, including expanded tariffs on certain imported steel and aluminum products added to the cost of some vehicle parts and components. For organizations operating large fleets, even modest increases in repair costs can have a cumulative effect.

Bodily Injury Claims

Bodily injury claims with attorney representation are on the rise in auto liability.  CCC Intelligent Solutions found bodily injury severity rose 32% over the past 4 years.

The LexisNexis 2026 U.S. Auto Insurance Trends Report notes the balance between bodily injury (BI) and property damage (PD) claims is shifting. In 2022, there were 24 bodily injury claims for every 100 property damage claims. By 2025, that ratio had increased to 29, indicating that claims involving injuries represent a growing share of overall auto losses.

How Can You Control Your Costs?

You can't control inflation, supply chain disruptions, or the evolution of costly in-vehicle technology, but you can reduce the risk of collisions and unbudgeted repair costs. 

Implement a Driver Safety Policy

A well-designed driver safety policy establishes clear expectations, supports hiring decisions, and helps organizations identify drivers who may require additional training or corrective action.

Leadership should develop a policy for employees who drive white-fleet vehicles and a separate policy for school bus drivers. Your bus driver policy must account for regulatory requirements that apply to CDL holders. Examples include drug testing and entry-level driver training.

Related resource: Texas Department of Insurance Occupational Driving Safety Program Checklist

Train Your Drivers

Severe weather, work zones, fatigue, and distractions are just a few factors that contribute to collisions. Train your drivers to navigate roadway risks with a combination of lecture, on-the-job, operator observation, and skills tests.

Fund members with Auto coverage benefit from a Driver Safety Training Kit. The kit includes a quiz you can keep in each employee’s training documentation.

Form an Accident Review Committee

An accident review committee (ARC) is a powerful tool for identifying preventable collisions and reducing the risk of them happening again. ARC members analyze accident reports, witness statements, photos, and other evidence. They also consider whether management missteps, such as failing to train employees, contributed to the accident.

Commit to Preventative Maintenance

Organizations planning to expand or replace fleet vehicles continue to face historically high vehicle costs. Regularly scheduled oil changes, tire rotations, and other maintenance extend your fleet’s lifecycle, but that’s just one benefit. If you keep vehicles in safe working condition, you reduce the risk of accidents. You should also remember that many auto insurance carriers won’t cover damages caused by wear and tear. Most vehicle warranties carry the same exclusions.

Protect Your Fleet

Texas consistently leads the country in hailstorms, and school roofs aren't the only targets. Hail stones can chip vehicle paint, dent bodies, and shatter glass. You also have to consider the risk of vandalism and theft.

Follow these best practices to protect your fleet:

• Park in covered areas when possible to prevent hail damage.
• Install security fences around white fleets, keep bus barns locked outside of school hours, and install video surveillance.
• Consider overnight security for extra protection.
• Make your catalytic converters less attractive to thieves.

Control What You Can

If you’re looking to control your coverage costs and redirect funds back into classrooms where they belong, remember this: Commercial auto coverage is not a substitute for proactive risk management.

As always, Fund members with Auto coverage can rest easy knowing the Fund has the financial strength to cover compensable claims. Members can do their part by controlling the factors they can control:

• Protect your vehicles from theft, vandalism, and hail.
• Get more life out of your fleet by investing in a preventative maintenance program.
• Build a culture of safe driving.
• When collisions do happen, investigate and correct their root causes. 

Editor's note: This article was originally published in November 2023. It has been updated for accuracy and comprehensiveness.