In the business realm, decisions about who is entrusted to drive for the company carry immense weight. A crucial aspect of this decision-making process is reviewing Motor Vehicle Records (MVRs) of prospective and existing drivers. In this blog post, we’ll explore key considerations when assessing MVRs, the significance of identifying red flags, and the profound impact these decisions can have on your current and future commercial auto insurance premiums.
Understanding the MVR Assessment Process
Before delving into the specifics, let’s unravel the elements of a comprehensive MVR assessment:
Identifying Accidents and Traffic Violations:
– Scrutinize MVRs for any history of accidents or traffic violations. This includes speeding, reckless driving, and other infractions that might indicate a pattern of risky behavior on the road.
– Ensure that the driver holds the appropriate license type for the designated tasks. Additionally, verify that the license is valid and not subject to any restrictions or impending expiration.
Evaluating Severity and Frequency of Infractions:
– Assess the severity and frequency of any infractions on the MVR. A one-time minor violation might be different from a consistent pattern of serious traffic offenses.
Reviewing Medical Certificate Validity (if applicable):
– For drivers requiring a medical certificate, verify its validity. Ensuring that the driver is in good health is integral to safe driving practices.
The Impact on Commercial Auto Insurance Premiums
Making sound decisions about who is allowed to drive for your business doesn’t just impact road safety; it significantly influences your commercial auto insurance premiums. Here’s how:
Current Premiums:
– A history of accidents, severe convictions, or frequent traffic violations can result in higher current insurance premiums. Insurers consider the risk profile of drivers when determining premium rates.
Future Implications:
– Consistently poor driving records can lead to a higher likelihood of accidents and claims. This, in turn, may result in a continued upward trajectory of your commercial auto insurance premiums in the future.
If there is a commercial auto accident involving your driver and that driver is subsequently removed as a driver from your policy, the impact on your insurance premium will remain with your business for the next 3-5 years. This is one reason you need to seriously consider reviewing MVR’s and other means of background checks on all drivers for your company.
The Strategic Approach
Striking a balance between comprehensive risk assessment and fair opportunity for employees is crucial. Implementing a strategic approach to MVR reviews involves:
Clear Policies: Establish clear policies regarding driver qualifications and regularly communicate them to your team.
Regular Reviews: Conduct regular reviews of MVRs, especially when renewing insurance policies.
Driver Education: Encourage and invest in driver education programs to enhance safety awareness.
Prompt Action: Take prompt action in response to any new infractions, ensuring a proactive approach to risk management.
By making informed decisions about who gets behind the wheel on behalf of your business, you not only enhance road safety but also contribute to the long-term financial health of your enterprise. It’s a pivotal step in creating a secure and responsible driving culture within your organization.
