Trucking Industry’s Support for Auto Insurance Reform
SARATOGA SPRINGS — Governor Kathy Hochul is advocating a set of auto insurance reforms as part of the ongoing state budget discussions. Members of New York’s trucking sector are hopeful these changes will lead to significant cost savings for their businesses.
Despite significant investments in advanced safety technologies and equipment to better evaluate traffic incidents, trucking owners have witnessed a steady rise in their insurance premiums over recent years. This issue was a focal point during a safety conference held by The Trucking Association of New York in Saratoga Springs on Tuesday.
Brian Brundige, vice president of operations at Terpening Trucking, reported a 10% increase in their insurance costs over the past three years, with annual bills exceeding $3 million. He noted that many accidents are beyond drivers’ control, yet the trucking industry often bears the financial repercussions.
Joe Fitzpatrick, who operates Lightning Express Delivery Service, mentioned that the rising insurance costs have forced him to reduce expenses, including selling a spare truck that he used for emergencies. He expressed concern about the sustainability of his business if insurance rates continue to climb.
Kendra Hems, president of the Trucking Association of New York, highlighted the crucial role of trucking in providing essential goods while warning that ongoing cost increases could drive up consumer prices. Many trucking companies are small family-owned businesses operating on slim profit margins and struggling to absorb rising costs, leading to potential price hikes for consumers.
Hems further emphasized the disparity in insurance costs across different regions, pointing out that while upstate insurance rates typically range from $15,000 to $20,000 per truck, companies operating in New York City face premiums that can skyrocket to $57,000.
Hochul’s proposed reforms aim to reduce fraudulent insurance claims and establish new caps on payouts for certain accident victims. Advocates believe these changes will enable insurance companies to lower premiums for policyholders. However, skepticism remains among some legislators regarding the likelihood that insurance companies will pass on these savings to customers.
Trucking Association officials are hopeful that these reforms will enhance market competitiveness, leading to more insurance providers entering the market, thereby benefiting trucking businesses. Fitzpatrick has expressed a desire to find more affordable insurance options, lamenting how inquiries about coverage in New York City often end in rejection.
