Business Auto insurance premiums have been climbing, and one of the biggest forces behind the increase sits in repair shops across the country. The cost of fixing vehicles and paying the skilled labor required to do the work has risen sharply in recent years. For insurers, that means higher claim payouts. For policyholders, it translates into higher premiums. Below are reasons why we are seeing an increase in premiums: 

Technology Complexity Is Raising Repair Costs
Modern vehicles are safer and smarter than ever, but that sophistication comes with a price. Features like advanced driver-assistance systems, sensors, cameras, and complex electronics require specialized equipment and highly trained technicians to repair. A simple fender bender that once meant replacing a metal panel can now involve recalibrating radar sensors, reprogramming cameras, or sourcing expensive OEM parts. Even minor accidents often escalate into thousands of dollars in repairs.

Parts Prices Are Increasing
Supply chain volatility hasn’t fully stabilized, and vehicle parts continue to trend upward in price. Factors such as higher manufacturing costs, global material shortages, and limited inventories mean insurers are paying more every time a claim involves replacement components. OEM parts—commonly required on newer vehicles—are particularly costly. As more drivers operate vehicles loaded with proprietary technology, that dependency grows.

Skilled Labor Is in Short Supply
Repair shops nationwide are dealing with a talent shortage. Retirements, limited entry-level technician pipelines, and industry churn have reduced available labor. As shops compete for experienced technicians, wages continue climbing.
Higher labor costs directly impact the total price of a repair, and insurers adjust premium pricing accordingly to keep up with rising claim severity.

Longer Repair Times Amplify Expenses
Even when shops have the staff, they may not have the parts. Delays in parts availability and bottlenecks in production lead to longer repair times. That prolongs rental car usage—another component insurers must cover in a claim.
Extended repair cycles mean a single accident creates multiple forms of inflationary pressure: more shop hours, more rental days, and more administrative involvement.

More Severe Claims Are Becoming Common
Vehicles may be more advanced, but they’re also more expensive to repair when severely damaged. Combined with rising medical costs and increased litigation trends, many claim payouts are reaching levels that exceed prior years by wide margins. Insurance premiums reflect not just the frequency of claims, but their severity. With severity rising across the board, premiums follow.

What This Means for Policyholders?

While customers feel the squeeze, insurers and agents have opportunities to help them navigate the environment:

• Educating clients on why premiums are rising can ease frustration.
• Encouraging appropriate deductibles can help manage cost without sacrificing essential protection.
• Promoting telematics programs may create savings for safe drivers.
• Reviewing coverage annually ensures clients aren’t over-insured or underinsured in a changing market.

The Road Ahead
As the vehicle market grows, more advanced and the labor landscape remains tight, repair costs are unlikely to drop quickly. Premiums will continue adjusting to reflect the true cost of keeping drivers on the road. The key for businesses and consumers alike is staying informed and making strategic coverage decisions that keep protection strong and budgets manageable. If you have questions about Business Auto Insurance or any other type of Business Insurance, please feel free to contact me. 

Jason Matison
Commercial Insurance Agent
Austin, Texas

Many companies assume they’re protected from auto-related liability as long as they don’t own any vehicles. In reality, the moment an employee rents a car for a business trip or drives their personal vehicle to run a work errand, your organization takes on risk. Risk that isn’t covered by a standard Commercial General Liability policy. 

Hired and Non-Owned Auto (HNOA) coverage fills this gap. It’s one of the most overlooked yet critical forms of protection for businesses of every size.

What Hired and Non-Owned Auto Actually Covers

Hired Auto applies to vehicles your business rents, leases, or borrows for work purposes.
Non-Owned Auto applies to vehicles owned by employees or contractors but used for business activities.

This coverage typically responds to liability claims, medical bills, property damage, legal fees if a driver causes an accident while performing company-related tasks.

Why This Coverage Matters

Employees Using Personal Vehicles Creates Hidden Exposure
Team members often use their own cars for everyday work tasks: delivering documents, visiting clients, picking up supplies. Personal auto policies usually exclude business use or aren’t robust enough to handle significant claims. Without HNOA, your company can be pulled into lawsuits and forced to pay out of pocket.

Rental Cars Bring Company Liability
Business travel often means rented vehicles. Even if a rental company offers add-on insurance at the counter, it’s typically limited and expensive. Hired Auto coverage provides consistent protection and typically responds before those optional plans do.

Lawsuits Target the Business First
If an accident occurs while someone is acting on behalf of your company, attorneys tend to pursue the organization, not just the driver. Businesses are viewed as having deeper pockets, making them natural targets for litigation. HNOA helps shield your balance sheet from catastrophic claims.

Delivery, Sales, and Mobile Workforce Trends Increase Risk
With more organizations relying on mobile employees, whether for deliveries, client visits, sales calls, or event support, the frequency of vehicle use has increased even for companies without fleets. More time on the road raises the chances of a claim.

It Protects Your Brand and Ability to Operate
Serious auto incidents can damage reputation and disrupt business operations. Insurance that responds quickly and effectively helps contain the fallout and keep your business moving.

Who Needs HNOA Coverage?

This protection is valuable for nearly any organization, including:

• Professional services firms
• Contractors and construction companies
• Nonprofits
• Delivery-lite businesses (e.g., meal pickup, courier services)
• Retailers and wholesalers
• Anyone with employees who drive for work, even occasionally

If your people drive as part of their job, even infrequently HNOA is important.

Hired and Non-Owned Auto coverage is typically affordable and easy to add to a commercial policy. For many businesses, it’s one of the highest-value risk protections available. It safeguards against unpredictable, high-severity events that could otherwise lead to financial strain. If you have questions about Hired and Non-Owned Auto coverage, or any other type of Business Insurance, please feel free to contact me.

Jason Matison
Commercial Insurance Agent
Austin, Texas

In today’s hyper-connected world, cyber attacks are no longer isolated events, they’re a constant, evolving threat. As technology advances, so do the tools and tactics used by cybercriminals. Understanding why these attacks are increasing is the first step toward building stronger defenses for the future.

The Expansion of the Digital Ecosystem
The rapid growth of cloud computing, remote work, and connected devices has dramatically expanded the attack surface. Every new app, API, and IoT device represents another potential entry point for hackers. Businesses that once operated behind secure office networks now rely on distributed systems and personal devices, all of which are harder to secure consistently.

AI Is Fueling Both Defense and Offense
Artificial intelligence is transforming cybersecurity, but it’s also arming attackers. Cybercriminals are using AI to automate phishing, identify system vulnerabilities, and even create deepfake-based scams. These AI-driven attacks are faster, more convincing, and harder to detect, forcing organizations to upgrade their defense tools just to keep up.

Data Has Become the World’s Most Valuable Commodity
The explosion of personal and business data online has made cybercrime incredibly profitable. Hackers don’t just steal information anymore, they sell it, ransom it, or use it to manipulate markets. As data privacy laws tighten, the value of stolen data rises, incentivizing even more sophisticated breaches.

Global Instability Is Increasing Cyber Warfare
Nation-state cyber activity is on the rise, with geopolitical tensions spilling into the digital realm. Governments and hacktivist groups are targeting infrastructure, financial systems, and private enterprises to disrupt economies or gain intelligence. These large-scale attacks often ripple down, impacting businesses of all sizes.

Cybercrime Has Become a Business Model
The “Cybercrime-as-a-Service” economy has exploded. On the dark web, ransomware kits, phishing tools, and stolen credentials are for sale to anyone with cryptocurrency. This has lowered the barrier to entry for cybercriminals, even those with minimal technical expertise can launch damaging attacks.

Security Awareness Hasn’t Kept Up
Despite increased awareness, human error remains one of the biggest vulnerabilities. Phishing emails, weak passwords, and poor patch management continue to open the door for attackers. The gap between technology adoption and cybersecurity education remains wide — and hackers exploit it relentlessly.

Looking Ahead: Resilience Is the New Security
As we move deeper into 2025, the question isn’t if you’ll face a cyber threat, it’s when. Forward-thinking businesses are shifting their mindset from pure prevention to resilience: investing in incident response plans, employee training, and Cyber Insurance to recover faster when breaches occur.

Cyber attacks may be on the rise, but so are the tools and strategies to fight them. The organizations that prioritize security today will be the ones best positioned to thrive in tomorrow’s digital landscape. If you would like a Cyber Insurance quote, please feel free to contact me.

Jason Matison
Commercial Insurance Agent
Austin, Texas