Our nation's 250th birthday occurs in 2026, and the trucking industry has been a huge part of advancement in the US during that time. Let's take a quick look at how we got here and where the transportation industry — and its insurers — is today.

A Brief History of Trucking

Post-WWI, trucks became more available and dependable via assembly lines and better roads. The first trucks used for hauling goods for hire, meaning commercial pay for freight transport, date back to the late 1800s. In 1898, Andrew Riker's electric delivery wagons were used for deliveries around New York City. That same year, Alexander Winton of Winton Motor Carriage Company in Cleveland, Ohio built and sold what is widely credited as the first semi-truck, which hauled automobiles. In 1899, Autocar produced what is often called the first gasoline-powered commercial truck in the US, which was a kind of delivery wagon with a 700-pound payload.

Before this, freight was dominated by railroads and horse-drawn wagons. Early motorized trucks were mostly prototypes or private freight-hauling vehicles. The industry grew slowly at first. By 1912, there were about 10,000 trucks nationwide, mostly for local deliveries. But by the 1930s, the trucking industry had exploded with better roads and further equipped factories. The industry accelerated by the late 1950s and 1960s with the construction of the interstate highway system.

Our nation continues to rely on the trucking industry as the backbone moving freight delivering goods across the US. The slogan "Trucks Bring It" was relevant back in the early 1900s and is still relevant today.

Current Trucking Industry Struggles

Right now, in early 2026, many carriers, owner-operators and fleets are facing some of the toughest conditions in recent memory. We see it, we hear it from you every day, and we truly feel for the challenges clients are navigating.

Trucking freight demand remains soft and uneven after years of ups and downs, with excess capacity keeping rates stubbornly low. At the same time, operational costs continue to climb. Fuel prices fluctuate, maintenance and parts are expensive, equipment financing carries higher burdens and compliance with new regulations adds layers of complexity.

Compounding all of this is the persistent rise in insurance premiums, driven by factors like lawsuit abuse, nuclear verdicts, higher repair costs and fewer carriers willing to provide coverage in this high-risk space. Many operators report insurance as one of the fastest-growing line items, squeezing already thin margins even further and forcing tough decisions about routes, equipment or even staying in business.

Commercial Auto Insurance Industry Struggles

The commercial auto insurance market, especially trucking coverage, remains deeply challenging for insurance carriers too. We understand the strain this puts on everyone: truckers facing higher premiums while insurers fight to stay afloat. It's tough on both sides of the equation.

For years, commercial auto has been unprofitable, with combined loss ratios often exceeding 100% (meaning claims and expenses outpace premiums). Recent reports show this persisted into 2025, with many top carriers posting ratios well above breakeven, driven by surging nuclear verdicts and social inflation; escalating repair costs, parts shortages and inflation in equipment and labor; more frequent and complex claims tied to litigation trends; and late reported or unreported claims and exposures that increase carrier claim costs.

These losses threaten carriers' long-term viability, leading many to raise rates by double digits, tighten underwriting, reduce capacity in high-risk segments or geographic territories or even exit parts of the market. Without adjustments, more insurers could pull back, leaving fewer options for trucking operators and creating a tough cycle for all. The industry did see insurance carrier exits in 2025.

The goal isn't excessive profits, it's achieving basic sustainability so reliable coverage can continue. To get there, the industry needs measured rate aligned with real loss trends and exposures; stronger focuses on risk mitigation through safety programs, telematics and training; alternative structures like higher deductibles or layered coverage to share risk more effectively; progress on tort reform to curb nuclear verdicts and ease severity; and wider adoption of data sharing, which may net clients discounts for their insurance costs.

Trucking and insurance are interconnected, when one struggles, it affects the other. We appreciate the dedication on both sides and are committed to finding balanced solutions that keep trucks moving and coverage accessible.

How RPS Can Help

That's why we're here for you. At RPS, we specialize in trucking insurance solutions designed with the realities of today's market in mind. We understand that one-size-fits-all policies don't cut it when every mile counts. Our team collaborates closely with our retail client partners and carrier partners to provide solutions. If these market realities are hitting your client's operations hard, we're here to explore options that work for you.

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