If your business has company vehicles, a fleet of trucks, delivery vans, or employees who drive for work, you may have noticed something at renewal time: commercial auto insurance isn’t getting any cheaper.

While some areas of the commercial insurance market have started to level off in 2026, commercial auto is still seeing pressure.

According to the Council of Insurance Agents & Brokers, commercial auto premiums increased an average of 4.5% during the second quarter of 2026. The Ivans Index reported a similar trend, with commercial auto renewal rates increasing an average of 4.93% during the same quarter.

So what’s behind the increases?

And more importantly, is there anything a business owner can actually do about it?

The answer to the second question is yes.

You may not be able to control what is happening in the insurance market, but there are several things you can do to help manage your company’s risk and make sure you’re getting the coverage your business actually needs.

Why Is Commercial Auto Insurance Still So Expensive?

There isn’t one simple answer. A combination of factors is driving up the cost of commercial auto insurance.

Accidents Are Getting More Expensive

A vehicle accident can cost a lot more than it used to.

Today’s vehicles are packed with technology. Cameras, sensors, radar systems, computerized components and advanced safety features can make repairs much more complicated and expensive.

What looks like a minor accident from the outside can sometimes turn into a major repair bill.

Then there are the other costs that can come with a serious accident, including medical bills, legal expenses, replacement vehicles, lost business and liability claims.

Insurance companies have to account for all of these costs when setting rates.

Large Liability Claims Are Another Concern

Another factor affecting commercial auto insurance is the size of some liability claims.

Large jury awards can have a significant impact on the insurance industry, particularly when a commercial vehicle is involved.

Aon reported that general liability and commercial auto nuclear verdicts increased by 52% in 2024, while total awards more than doubled.

These types of claims can also affect umbrella insurance. The Council of Insurance Agents & Brokers reported that umbrella premiums increased an average of 5.3% during the second quarter of 2026.

For business owners, this is one reason it’s worth taking a closer look at your liability limits. It’s not just about making sure your vehicles are insured. It’s about making sure your business has enough protection if something serious happens.

Repairs Are More Complicated Than They Used to Be

Think about how different today’s vehicles are compared with those from 10 or 20 years ago.

A commercial vehicle may have cameras, sensors, electronic safety systems and other technology that wasn’t common in older vehicles.

When one of those systems is damaged in an accident, the repair can become much more involved.

And the longer a vehicle is sitting in a repair shop, the more it can affect your business.

If that truck is making deliveries, hauling equipment or getting your employees from one job to another, downtime can mean lost revenue.

For many businesses, that’s a bigger problem than the repair bill itself.

Your Commercial Auto Policy Isn’t the Whole Story

It’s easy to look at your commercial auto premium and focus on that one number.

But your auto policy is just one part of your overall insurance program.

A serious accident could involve your commercial auto coverage, general liability, workers’ compensation, umbrella or excess liability coverage, and potentially business income coverage.

That’s why we recommend looking at the entire picture when reviewing your insurance.

Trying to save money on one policy doesn’t make much sense if it creates a coverage problem somewhere else.

The Good News: The Insurance Market Is Changing

There is some good news for business owners.

The overall commercial insurance market has started to soften in 2026.

According to the Council of Insurance Agents & Brokers, average commercial insurance premiums decreased 2% during the second quarter of 2026. Commercial property, workers’ compensation and cyber insurance have also seen more favorable pricing conditions.

Commercial auto, however, is still moving in the other direction.

That’s important because it means you shouldn’t assume every type of business insurance is going to be priced the same way. Some areas of the market are becoming more competitive, while commercial auto and umbrella coverage continue to face challenges.

This is where having an independent insurance agency can make a difference. Instead of simply accepting the first renewal number you receive, your agent can look at your business, your loss history, your vehicles and your drivers and help determine what makes sense for your situation.

What Can Your Business Do to Manage Commercial Auto Costs?

You can’t control the insurance market, but you can control how your business manages risk.

Here are a few things worth looking at.

1. Take Driver Safety Seriously

Your drivers play a major role in your company’s auto risk.

Make sure your employees understand your expectations when they’re behind the wheel.

That may include policies covering:

• Distracted driving

• Cell phone use

• Speeding

• Seat belt use

• Driver qualifications

• Vehicle inspections

• Accident reporting

• Driver training

A good driver safety program isn’t just something to put in an employee handbook. It should be something your company actually follows.

2. Keep an Eye on Driving Records

Before putting someone behind the wheel of a company vehicle, you want to know who you’re trusting with it.

Regular motor vehicle record checks can help identify drivers with serious violations or other concerns.

It’s also a good idea to have a consistent process for reviewing drivers when they’re hired and periodically afterward.

A clean driving record doesn’t guarantee that an accident won’t happen, but good hiring and driver-monitoring practices can help reduce your overall risk.

3. Look Into Telematics

Technology can also help businesses understand what’s happening on the road.

Telematics systems can provide information about things such as speeding, hard braking, rapid acceleration, mileage and driving habits.

For some businesses, this information can be extremely useful.

Instead of guessing where your biggest risks are, you can actually see them and use that information to coach drivers and improve your safety program.

4. Don’t Ignore Vehicle Maintenance

Regular maintenance may not be the most exciting part of running a business, but it matters.

Keeping vehicles properly maintained can help prevent mechanical problems and keep your employees and other drivers safer.

Have a maintenance schedule and stick to it.

It can also help to keep records of inspections and maintenance. If something does happen, having that documentation can show that your company takes vehicle safety seriously.

5. Take a Look at Your Liability Limits

Here’s a question every business owner with vehicles should ask:

If one of our vehicles were involved in a serious accident tomorrow, would our current liability limits be enough?

It’s an uncomfortable question, but it’s an important one.

A serious accident can result in substantial medical bills, property damage and legal expenses. An umbrella or excess liability policy may provide additional protection above your underlying auto liability limits, depending on the policy.

The right amount of coverage is different for every business, so this is something worth discussing with your insurance professional.

6. Start Your Renewal Review Early

Don’t wait until your renewal is sitting in your inbox to start thinking about your insurance.

Give yourself some time.

Before renewal, review your:

• Vehicles

• Drivers

• Claims history

• Liability limits

• Business operations

• Safety procedures

• Loss-control practices

Make sure your insurance company has accurate information about your business.

If you’ve added vehicles, hired drivers, changed operations or expanded into new areas, your insurance agent needs to know.

The more accurate information your agent has, the better they can help you evaluate your options.

The Bottom Line

Commercial auto insurance is still a challenging market in 2026.

Rates remain under pressure because accidents are expensive, vehicle repairs are becoming more complicated, and large liability claims can have a significant impact on businesses and insurers.

But that doesn’t mean you’re powerless when your renewal comes around.

Good drivers, regular vehicle maintenance, strong safety practices, appropriate liability limits and a regular review of your insurance program can all help your business manage its risk.

At Penn Summit Insurance Agency, we work with business owners to look at the big picture, not just one insurance policy.

If your commercial auto premium has gone up, or if it’s been a while since someone reviewed your coverage, it may be worth taking another look.

Your vehicles keep your business moving. Make sure your insurance is keeping up.

This article is intended for general informational purposes only. Insurance coverage, limits, exclusions and eligibility vary by policy and insurer. Talk with a qualified insurance professional about your specific situation.