The insurance companies have raised the bar on your drivers. Business owners are experiencing increased scrutiny of Motor Vehicle Records (MVR), and increased premium costs if they don't meet underwriting standards. Just a few years ago, drivers with a few minor tickets and a couple of points on their license were ok with underwriters. Today however, the insurance companies are asking for these drivers to be excluded from coverage, or at least see improvement on the MVR after a 6 month review. Business owners who successfully negotiate keeping unacceptable drivers covered, will find that there is a cost for that. Insurance companies will increase premiums on the auto insurance with a small handful of unacceptable MVRs.
What has changed the game ? Increased losses on commercial auto is the culprit. The insurance industry has not had stellar results over the last few years. Also distracted driving, or better known as , the cell phone, has caused an uptick in accidents and is contributing to bad MVR's.
Many experts believe as vehicles and trucks become more automated and self driving, the accident rates will go down and the need to scrutinize driver MVR's will be lessened. Also insurance company results in the commercial auto sector will improve with technology. Until then, make sure you review your driver's MVR's on a routine basis, and do not hire new drivers with questionable MVR's. If a driver has a "story" behind the record then run it by your insurance company underwriter and see if they will accept the driver. No matter what, expect increasing commercial auto rates into the near future. If you have a handful of drivers with questionable MVR's expect those costs to be even higher.
Until next time be careful out there and know your risks.
Posted by G. Kevin Nemith, President, Agency Leader CNC Insurance & Pfister Insurance Office, Dover, Delaware
knemith@hilbgroup.com
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