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Procurement Market Intelligence Report

Commercial Auto & Truck Insurance
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Commercial Auto & Truck Insurance?

What is the average price of Commercial Auto & Truck Insurance?

This procurement report includes pricing information to help you purchase Commercial Auto & Truck Insurance. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Commercial Auto & Truck Insurance been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Commercial Auto & Truck Insurance yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Commercial Auto & Truck Insurance?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Commercial Auto & Truck Insurance with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

The commercial auto and truck insurance market has a low level of market share concentration, with the top four suppliers accounting for about 26.5% of total revenue. ProcurementIQ estimates that about 41,000 providers offer commercial auto and truck insurance, including direct insurance carriers, agents and brokers. Due to the large... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Experience

What type of commercial auto and truck insurance do you specialize in?

In my market, what kind of commercial insurance do you often process?

Have you insured similar vehicles used for the same purpose before?

What do you consider to be the areas where my market is most liable in terms of commercial auto and truck insurance?

Are you experiencing fluctuations in demand as a result of the coronavirus outbreak? What measures are you taking to handle increased/reduced demand?

Professional Expertise

How many of your employees have relevant professional certifications?

For brokers and agents, how long have the insurance carriers you work with been providing insurance in my area?

How do you ensure that your insurance knowledge is up to date?

Are any of your employees certified to recommend appropriate coverage in any other states?

Financial Strength

What are your financial strength ratings?

What is your loss ratio, combined ratio, expense ratio and operating ratio?

How do you determine the level of reserves you need to have to cover claims?

Have you ever not been able to cover a claim due to financial hardship?

How have the effects of the coronavirus outbreak impacted your company's profitability and overall financial risk?

Could you describe how the outbreak of COVID-19 is affecting your ability to pay out claims? What sort of steps is your company currently taking to mitigate the negative impact of the outbreak on your company's claim processing procedures?

Trustworthiness

For agents or brokers, do you receive any commission from insurance carriers based on the amount of the premium written?

What is the average premium you process for businesses in markets similar to mine and of similar size?

What types of incentives do you give agents and brokers when obtaining new business?

Have you or your employees encountered any issues with trustworthiness during the past year? If so, how did you rectify the situation?

Customer Service

How many customer service representatives do you have and what are their hours?

Can I service my policy through the insurance carrier's website?

Do your customer service representatives have the authority to resolve policy issues?

If you are an agent or brokers, what is the scope of your authority in handling policies?

What is your average renewal rate?

What is the rate of accuracy for claim, amendment and endorsement processing?

Timeliness

What is the average turnaround time from submitting a claim to a payout?

How long does it take from submitting an amendment request or endorsement to having the change take effect?

What are your renewal procedures to prevent lapses in coverage?

What are your standard procedures for claims, amendments and endorsements?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should indicate their expectations for premiums.

Buyers should disclose any preferences regarding deductibles.

Buyers should specify their expectations for payments, including schedule and method.

Buyers should reference the Benchmark Price section of this report for more information on pricing factors that affect premium levels.

Selection Criteria

Buyers should evaluate vendors based on their experience providing commercial auto and truck insurance.

Buyers should consider the qualifications of providers.

Buyers should evaluate the timeliness of vendors.

Buyers should assess vendors based on their service and support offerings.

For details about key criteria buyers should consider when evaluating potential providers, see the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the dates that they expect insurance coverage to begin.

Buyers should indicate whether they prefer a six-month contract or a one-year contract.

Buyers should disclose any preferences for contract renewal.

Buyers should supply a list of any relevant solicitation milestones, such as submission deadlines and contract notification dates.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk in the commercial auto and truck insurance market has been moderate during the past three years. This level of risk typically reduces buyer power because it means that providers are more likely to experience upstream disruptions to their supply chains. Therefore, providers may be less willing to... Subscribe to learn more.

HIGH

MEDIUM

LOW