AM Best says commercial auto claim costs keep outrunning inflation
AM Best says these trends can lead to higher rates.
What happened
AM Best's Oct. 19 report says first-year commercial auto liability loss payments rose 6.4% a year from 2014 to 2024, more than double the 2.8% average rate of economic inflation. It points to litigation tactics, higher jury awards and claims that stay open longer.
Why it matters
AM Best says these trends can lead to higher rates. Claims above a typical $1 million auto liability limit spill into umbrella coverage, and umbrella pricing has become more costly and has not returned to its earlier level.
What to consider
Know your auto liability limit and whether you carry an umbrella or excess layer above it. Excess vs umbrella for growing fleets
Sources
Reporting and records credited to the sources above, Oct. 19, 2026. We link to the original and add what it means for carriers.
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