Old Republic Insurance Company is changing how it calculates commercial auto premiums for its Last Mile Delivery program in South Dakota.

Under the approved filing, premiums will be based on the number of hours each covered vehicle is used on delivery routes, replacing the current per-day, per-vehicle approach. Old Republic said the change will better align premiums with actual vehicle utilization.

To calculate the hourly rate, Old Republic will divide the existing daily rate by an assumed 10-hour route duration and then adjust it for the expected vehicle utilization rate. Monthly premiums will be calculated one month in arrears using reported utilization hours.

Premiums may vary based on hours driven, route assignments, vehicle weight classes and operating locations. Vehicles moved to another facility will be charged the rate applicable to that location.

The filing was approved on July 13 and takes effect March 1, 2027, for new and renewal policies.