Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Canadian Trucking Hit By Insurance Costs

U.S. trucking companies aren't the only ones being socked by skyrocketing insurance costs. The Canadian Trucking Alliance reports that motor carriers across Canada are being hit hard, as well, and warned shippers to expect to hear from their carriers soon

by Staff
December 18, 2001
2 min to read


U.S. trucking companies aren't the only ones being socked by skyrocketing insurance costs. The Canadian Trucking Alliance reports that motor carriers across Canada are being hit hard, as well, and warned shippers to expect to hear from their carriers soon.

Many carriers from across the country have begun to complain about massive increases in liability insurance premiums - even where the carrier believes it has maintained an excellent loss ratio. Increases of 40% to 50% are common, and 100% to 200% increases are not unheard of.
CTA reports that the number of insurance companies willing to write truck liability insurance has shrunk, especially in the United States, so insurance costs for carriers operating into the U.S. are increasing significantly.
In addition, the group notes, insurance pay-outs from September 11 are expected to be in the several tens of billions of dollars. It is estimated that the reserves of the entire insurance industry have been dramatically reduced and will have to be rebuilt. This has severely constrained the reinsurance market, pushing up premiums.
With interest rates low and stocks showing the impact of a bear market for the past year or so, revenue generated from insurance industry investments are down. These are a major source of profits for the insurance industry.
According to the CEO of the Alliance, David Bradley, "Like the escalating cost of fuel, there is no quick solution to this problem. Ultimately, carriers will have to deal with their insurance providers and their customers. Our job is simply to make shippers and carriers aware of the situation."
He says that ultimately the increased cost should be reflected in freight rates. There is some talk of insurance surcharges being applied, although it is not clear how that would be calculated. "It would be tough to develop a general formula for the entire industry. Things really need to be examined on a case-by-case basis - every carrier's claims/loss experience, deductible and level of self-insurance will be different."
Bradley concedes there may also be some positive impact from the insurance increases. "We are told that some carriers with poor safety performance are learning they cannot even find anyone to write them an insurance policy. The sooner those carriers are out of the industry the better it will be for everyone."

Topics:Equipment

More Equipment

Closeup of engine in Mack truck
Equipmentby Deborah LockridgeMay 13, 2026

Mack Unveils EPA 2027-Compliant MP13 Engine With More Power, Better Fuel Economy

Along with unveiling its EPA 2027-compliant MP13 engine, Mack outlined powertrain changes across its Class 6-8 lineup, including new Cummins-based X10 engines.

Read More →
Kodiak Driver-equipped Roehl Transport tractor-trailer.
Equipmentby News/Media ReleaseMay 11, 2026

Kodiak and Roehl Transport Launch Autonomous Route Between Dallas and Houston

Kodiak AI and Roehl Transport have begun autonomous freight operations on a regular Dallas-Houston route, marking another step toward Kodiak’s planned driverless launch by the end of 2026.

Read More →
Peterbilt-Kodiak autonomous truck.
Equipmentby Deborah LockridgeMay 8, 2026

Autonomous Trucks at ACT Expo 2026

Autonomous trucks commanded a lot of attention from attendees at ACT Expo this year. Check out this photo gallery.

Read More →
Ad Loading...
Crowd at Volvo booth at ACT Expo
Equipmentby Deborah LockridgeMay 8, 2026

How Volvo’s New D13 Engine Meets EPA 2027 Emissions Without Sacrificing Power or Fuel Efficiency

Volvo says advances in combustion and aftertreatment helped its new EPA 2027 D13 engine avoid the fuel-economy penalties many once expected from tighter NOx emissions limits.

Read More →
Fleet Advantage Truck Life Cycle Data Index chart comparing operating costs, fuel savings and total cost of ownership for Class 8 truck model years 2022 through 2028.
Equipmentby News/Media ReleaseMay 7, 2026

Fleet Advantage TLDI Highlights Rising Costs of Aging Fleet Equipment Amid Higher Diesel Prices

Fleet Advantage’s latest Truck Life Cycle Data Index shows fleets operating older Class 8 trucks could face significantly higher costs as diesel prices rise, while newer 2028 equipment may deliver savings of more than $12,000 per truck annually.

Read More →
Two men in chairs on stage with big video screen behind them showing Tesla Semi
Fuel Smartsby Deborah LockridgeMay 7, 2026

'TCO’s Here.' Tesla Says Electric Semi Economics Are Ready for the Mainstream

Tesla’s Semi chief at ACT Expo outlined production growth, lower-cost models, charging expansion, and why the company believes fleets are leaving money on the table by waiting on electric trucks.

Read More →
Ad Loading...
Front view of a Mack Granite heavy-duty truck featuring the new ImpactShield windshield with Corning Fusion5 Glass technology.
Equipmentby News/Media ReleaseMay 6, 2026

Mack Trucks Debuts Mack ImpactShield Windshield Technology on All-new Mack Granite and Expanded New Truck Lineup

Mack Trucks is introducing ImpactShield, the first Class 8 truck windshield to use Corning Fusion5 Glass, designed to improve durability, reduce damage and help fleets minimize downtime.

Read More →
Aurora and Volvo Dallas-Oklahoma City autonomous truck route.
Equipmentby News/Media ReleaseMay 5, 2026

Volvo Autonomous Solutions and Aurora Begin Dallas - Oklahoma City Route

Volvo Autonomous Solutions and Aurora expand their freight network with a new Dallas–Oklahoma City route, moving closer to scaled driverless operations.

Read More →
Gray Volvo tractor pulling trailer on open highway
Fuel Smartsby Deborah LockridgeMay 1, 2026

New High-Horsepower Natural Gas Engine Could Expand Fleet Options

Westport and Volvo are demonstrating a 500-hp truck with diesel-like efficiency — one that also offers what Westport says is a better pathway to using hydrogen fuel in trucks.

Read More →
Ad Loading...
Aurora Innovation self-driving truck.
Equipmentby News/Media ReleaseApril 30, 2026

Hirschbach Announces Plan to Deploy 500 Aurora Autonomous Trucks

Hirschbach and Aurora Innovation have inked a non-binding deal outlining a path to deploy 500 Aurora Driver-powered trucks into fleet operations.

Read More →