One of the most important and impactful pieces of information submitted to underwriters when quoting any commercial automobile policy are driver MVRs (Motor Vehicle Record), as they reveal the direct correlation between driving records and insurance premiums. Not only does the MVR provide the underwriter with greater insight into the characteristics of the employees’ driving habits but also provides a peek into a company’s hiring standards as well.
Underwriters recognize that a higher standard of MVR acceptability can be an indicator as to how well an owner manages their company from a safety perspective. Owners as well need to recognize the direct correlation between driving records and insurance premiums. If an owner only hires drivers with clean/clear MVRs there is a good chance that the company is run with a minds-eye towards managing risk and ultimately keeping claims dollars to a minimum. The opposite can be said of an owner hiring individuals with a bad MVR, and as a result, will be viewed as a higher risk to insure. Any driver whose MVR contains multiple citations (speeding, improper lane change, failure to yield, accident, etc.), but is approved to drive, will negatively influence insurance premiums, driving company expenses up.
Not only could a driver with a citation-heavy MVR increase your insurance expense, their chances of causing an accident due to negligent driving practices are much higher. If the accident is serious enough, or happen at a higher rate of frequency, this could result in the insurance carrier non-renewing your policy upon expiration or meaningfully increasing your premium at renewal time. Your choice to take proper preventative measures in your hiring practices and initial MVR review evidences to the underwriter that loss control is an important element in your Non-Emergency Medical Transportation operation and will pay off in the long run.
What Can You Do?
As mentioned above, MVRs provide the underwriter with a quick peek into your hiring practices, which are used in the development of insurance premiums. The more written controls and guidelines your company has established for MVR standards, the better off your company will be when it comes to claim prevention and premium rates. Some examples of written controls and guidelines you should consider having in place include:
- Driver Incentive Programs
- Management Safety Record Incentive Programs
- Consistent Driver Performance Reviews
- Safety Posters and Slogans
- Safety Manual or Handbooks
- Cell Phone Policy
- Return to Work Policy
- Post Hire Medical Questionnaires
If you are ever hesitant as to whether you should move forward with hiring of a specific driver or not, ask yourself this; “Would I want this person driving my loved ones around?” If the answer is no, then you have your answer.
Please contact us to discuss the specific insurance needs of your company, and we’ll be happy to assist you in developing a customized insurance program for your non-emergency medical transportation business.