Why Oilfield Contractors Pay Higher Commercial Auto Rates (2026 Outlook)

Nate Jones, CPCU, ARM, CLCS, AU
7 days ago
2 min read

Oilfield contractors face unique challenges on the road—from transporting heavy equipment to navigating remote worksites. These risks often lead to higher commercial auto insurance rates compared to other industries. Understanding why rates are elevated and what factors insurers consider can help you better plan your 2026 insurance budget.

At Wexford Insurance, we specialize in providing tailored commercial auto coverage for oilfield contractors nationwide.

Factors Driving Higher Commercial Auto Rates for Oilfield Contractors

Insurance companies assess risk when pricing commercial auto policies. For oilfield contractors, several factors contribute to higher premiums:

1. Heavy and Specialized Equipment

Vehicles used to transport drilling rigs, pipes, and heavy machinery carry higher risk due to potential accidents and property damage.

2. Remote and Hazardous Worksites

Operating in remote areas with rough terrain increases the likelihood of accidents, breakdowns, or delays in emergency response.

3. Long Distances and High Mileage

Oilfield vehicles often travel long distances across highways, increasing exposure to accidents compared to standard commercial vehicles.

4. High Liability Exposure

Damages from an accident can involve expensive equipment, environmental cleanup, and bodily injury claims, making insurers charge higher premiums.

5. Driver Experience and Safety Records

Insurance companies consider the driving records of employees who operate company vehicles. High-risk routes or inexperienced drivers can increase rates.