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California commercial auto coverage grows harder for contractors
Brokers cite shrinking carrier appetite, while CIAB data shows commercial auto premiums rose 5.8% in Q1 2026, the highest increase among lines, and the line’s combined ratio has stayed above 100 most years since 2014.
California’s commercial auto insurance has become one of the toughest placements for contractor accounts, and brokers say the challenge is increasingly about limited carrier appetite, not just premium levels, according to Insurance Business.
Brokers say submissions to multiple markets can yield the same answer, because carriers are increasingly reluctant to write new business. Michael Benoit, president of Pacific United Insurance Services, said he struggles to find enough carriers willing to accommodate the risk profiles common in California contracting.
While commercial property and casualty premiums have been falling nationally, commercial auto has not followed, Insurance Business reported. The Council of Insurance Agents & Brokers (CIAB) found average commercial auto premiums increased 5.8% in Q1 2026, then eased to 4.5% in Q2, still ranking behind only umbrella coverage in the quarter.
The outlet also linked the pressure in commercial auto to broader underwriting strain across related coverages. CIAB pointed to nuclear verdicts from commercial auto accidents as a driver of pressure on umbrella business, with 40% of respondents reporting reduced umbrella capacity in Q2, while AM Best data showed commercial auto posted a combined ratio below 100 in only one year between 2012 and 2025, closing 2025 at 103.5.