nologies weren ’ t as robust as now . The more companies can use the technologies available to them , the more they can help curb loss frequency and , ultimately , severity . This will help positively impact pricing over time .
CLDA Mag : What else should last-mile providers know about what to expect in these areas in 2025 ?
Paulozzi : As I mentioned , rate increases and capacity issues are poised to plague the auto market in 2025 . In addition , positive loss results for Hired / Non-Owned auto insurers will continue to erode until some form of commercial auto insurance is mandated for 1099 / subcontractor drivers .
Another item to note is that some state authorities are pressing for higher limits on the insurance carried by motor operators in their states . New Jersey was the first state to do so , enacting a law in July 2024 that required carriers with units over 26,000 lbs . GVW to carry $ 1.5M in auto liability coverage . The federally mandated limit is $ 750k . This is undoubtedly something final-mile companies should be aware of , especially if other states look to do the same .
Companies should be aware of these trends and develop a plan to address them . HNOA auto insurers will continue to restrict coverage to protect themselves . Once a claim arises , these restrictions may become important to a courier . Having a plan and modeling solutions now is imperative to prevent this from sneaking up on you and becoming a budgetary problem . CLDA 52 customized logistics & delivery Magazine I fall / winter 2024