Higher rates for Canadian trucks travelling in parts of U.S.

Facility Association, an insurer of last resort, is introducing higher surcharges for trucking companies and truck owner-operators who travel through specific U.S. states.

A current surcharge is set at 1% per percentage of exposure in the U.S. For example, if 25% of a truck’s mileage is in the U.S., a 25% surcharge applies. But Facility Association will now assign higher surcharges for separate U.S. regions, charging 1.25% or 1.50% per percentage based on exposure in those areas.

“The three regions were divided up lowest risk, medium risk, highest risk,” said Derek Tupling, vice-president of government relations and communications at Facility Association.

That risk considered factors such as: state accident rates, fatalities, and the mix of rural or urban roads; the ratings applied by standard insurers; and judicial outcomes in auto accident cases.

With three exceptions, the states to see the highest surcharge of 1.50% per percentage of exposure are on the eastern seaboard, such as New York, South Carolina, New Jersey and Rhode Island, he said.

Related: Facility’s new approach to prevent truckers from “gaming the system”

“This is Canada-wide, at least in terms of where Facility Association operates,” Tupling added, referring to which policyholders will see the surcharges.

Facility Association currently provides insurance in Alberta, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, P.E.I. and Yukon.

Feature photo courtesy of iStock.com/shaunl

This article was first published on Trucknews.com, of which the author is the editorial director. Newcom Media owns Canadian Underwriter.