Insurance Rates for Texas Truckers Continue to Climb

Story.kisspr.com
13 Jul 2020, 05:00 GMT+10

Austin, TX - As a nation, we depend on the transportation and logistics industry for every aspect of our lives because of their intrinsic role in the production and supply chain, and that's never been more true than during the new era of stay-at-home orders and social distancing as a result of the COVID-19 pandemic. We're more dependent on online shopping, and thus, the transportation industry, than ever.

Trucking companies have to insure their vehicles, in part because of the damage they can cause in accidents. Usually, insurance rates depend on a company's safety culture and the measures taken to manage risks and prevent crashes. But increases in what insurers call "nuclear verdicts," against trucking companies, which are judgments and settlements exceeding $10 million, have politicians proposing high insurance minimums per vehicle. For many trucking companies, the proposed amendment to the Transportation Bill would double the insurance minimums they have to pay for.

"This is the type of situation that could very likely put us out of business," said Adam Blanchard, owner of Double Diamond Transport, Inc. in San Antonio. His fleet has almost 75 trucks, but 90% of all carriers in the U.S. have five vehicles or less. Along with price pressure, labor shortages, and supply-chain disruption as a result of the COVID-19 pandemic, this pressure could cause irreversible damage to small trucking companies.

Solutions for the Transportation and Logistics Industry

While technology can't solve all of the problems that truckers and other transportation and logistics professionals are facing, there is plenty of room for improvement. Traditional brokerage networks can minimize rates paid to carriers for their work, making it difficult for them to work at all because of the costs associated with truck maintenance and fuel. What if carriers could eliminate the middle man by finding each other directly, and share excess loads and power capacities with each other? The Magnus Network allows transportation companies to do exactly this.

The Magnus Carrier TMS and Mobile Driver App provide dispatching solutions for every aspect of the workflow.

About Magnus Tech

With a combined 50 years of experience in the transportation and logistics industry, Magnus Tech strives to simplify and improve the efficiency of operations in the trucking industry. Magnus Tech has developed a mature and patented technology platform that supports a delivery network of over 6,000 trucks and 11,000 drivers for nearly $7 billion worth of cargo. To find out more, visit magnustech.com.

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