Rancho Mesa's Alyssa Burley and Account Executive Matt Gorham discuss ways that Plumbers and HVAC contractors can control their auto insurance costs.

Show Notes: ⁠⁠⁠Subscribe to Rancho Mesa's Newsletter⁠⁠⁠

Director/Host: ⁠⁠⁠⁠Alyssa Burley⁠⁠

Guest: ⁠⁠⁠Matt Gorham⁠⁠

Producer/Editor: Jadyn Brandt

Music: "Home" by JHS Pedals, “News Room News” by Spence

© Copyright 2025. Rancho Mesa Insurance Services, Inc. All rights reserved.

Transcript

Alyssa Burley: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive.

I’m your host, Alyssa Burley, and today I’m joined by Matt Gorham, Account Executive with Rancho Mesa. He specializes in risk management for Plumbers and HVAC contractors. And, we’re going to discuss ways that Plumbers and HVAC contractors can control their auto insurance costs.

Matt, welcome to the show.

Matt Gorham:  Thank you, Alyssa! Always great to be here!

AB: Last time you were here, you shared some tips for reducing the risk of vehicle break-ins, and I understand that led to some broader conversations about contractors’ vehicles and auto insurance.

MG: Yea we’re seeing a lot of frustrations throughout the Plumbing and HVAC industries because - no matter what their focus is, service/repair work, TI work, or new construction – business owners depend on vehicles to get their people, tools, and materials to the jobsite. But it’s getting increasingly difficult to insure those vehicles.

AB: So why are we seeing this?

MG: Well there are a lot of factors involved, but the bottom line is a lack of financial sustainability for carriers. AM Best released a report showing that the U.S. commercial auto insurance segment sustained a $5 billion net loss in 2023.

AB: $5 Billion? I can see why the auto insurance premiums are rising.

MG: Right. And while last year’s final numbers aren’t yet available, early indications from the first half of the year are that 2024 was even worse than 2023, which will mark the 12th straight year of net underwriting losses for auto insurers.

AB: So those are some staggering numbers. How much of that is being driven by distracted driving and third party litigation funding?

MG: That’s a great question. It’s difficult to accurately quantify the impact of either of those, but there’s no doubt that distracted driving is directly influencing the frequency of auto accidents, while third party litigation funding is driving the severity of claims. Any accident now has the potential to balloon into a multi-million dollar settlement because third party litigation funding is making it easier for attorneys to pursue more claims farther than they would have been willing to previously because it shifts the financial burden away from them and onto investors.

AB: Yeah and that’s creating the challenges that we’re seeing in auto insurance?

MG: It’s certainly contributing heavily to it. With carriers losing money at that rate, we’re seeing them be very selective about who they’re partnering with and what safety controls they want to see implemented. After all, the best way to avoid the threat of these lawsuits is to avoid the accidents from happening in the first place.

AB: Yeah that makes sense. So how do you propose business owners who are relying on trucks, vans, and cars for their business operations, how can they minimize the frequency of auto accidents – when they are in fact – accidents?

MG: It’s definitely hard to argue that – accidents are, in fact, accidents. But there are generally factors within the control of the driver – or the business – that can significantly reduce the likelihood of an accident from happening.

For example, businesses need to carefully consider who they allow to drive for them. Establishing clear written guidelines on who is eligible to drive and how their driving performance is evaluated can help keep higher risk drivers off the road, while elevating a sense of responsibility among drivers and reminding them that driving is a privilege.

AB: And that’s where the motor vehicle records and the DMV Pull Program can be useful. Correct?

MG: Absolutely! And since those tools are looking backward at what has already happened, it’s also very important to look forward and define how and when drivers are allowed to operate vehicles. Implementing policies that address cell phone use, impaired driving, personal use of company vehicles, company use of personal vehicles, and how those policies are enforced can reduce the chance of an accident happening. Similarly, providing ongoing driver training for employees to understand risks that are present on the road – like other distracted drivers, inclement weather, or low visibility – can be important. Reinforcing topics like defensive driver training, safe following distance, and distracted driver training can help keep drivers sharp. And going a step further by requiring in person driving tests before getting behind the wheel – or annually – can further reduce the potential for auto accidents.

AB: Yeah, those are really good points: addressing who is driving for the company, how they’re driving, and making sure they’re able to demonstrate their ability to drive safely. In fact, Rancho Mesa’s clients are able to leverage our proprietary SafetyOne™ platform to conveniently access online trainings like distracted driver training and others. Are there any other things that business owners should be doing?

MG: Yeah, there’s plenty more, but one topic in particular I want to mention that often gets overlooked is the importance of the vehicles themselves. Performing routine maintenance like oil changes, tire rotations, and brake inspections is crucial to ensuring they run smoothly. And businesses can go beyond that with daily vehicle inspections to check proper functioning of headlights, brake lights, and tire pressure to proactively minimize the risk of dangerous maintenance issues arising that can easily lead to an accident, which is another area that Rancho Mesa clients can benefit from by using SafetyOne™.

AB: Absolutely, and the SafetyOne™ mobile app provides an easy way for drivers to document and report their daily vehicle inspections and any maintenance issues they may come across. And many Rancho Mesa clients have even placed QR codes in their vehicles to streamline their inspection process, where they can actually just scan the QR code and complete the form on their phones.

MG: Which is great because a strong fleet safety program focuses on three areas: the drivers, the policies that guide them, and the vehicles they drive. SafetyOne can be a central, digital tool that simplifies all of those things by bringing them all together in one place. And along with a robust fleet safety program, there are other ways that we’ve been successfully helping Plumbers and HVAC contractors address their frustrations amidst this challenging auto insurance market.

AB: Yeah, absolutely. People should take advantage of all of our resources. So Matt, if listeners have questions about their fleet safety program or other ways to help control their auto insurance costs, what’s the best way to get in touch with you?

MG: The best way to reach me is to call me at (619) 486-6554 or mgorham@ranchomesa.com.

AB: Matt, thanks for joining me in StudioOne™.

MG: Thanks for having me.

AB: Thanks for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.