File a Claim

driving records and your premiums

How does an employee's driving record affect premiums?

Imagine the following scenario: one of your star employees, while driving a company vehicle, has an at-fault accident. Thankfully, nobody is hurt and no DUI is involved, but he was distracted by a ringing cell phone while trying to cross an intersection. Could happen to anyone, right?

What if that employee already had multiple such incidents on his driving record? What if they had a DUI in the recent past? Do you think your likelihood of being sued goes up in that case? You better believe it does.

Here's another thought. Do you think that having such a bad driving record will cause your insurance premiums to go up? Of course it will, because that employee's bad driving record is a measurable risk. Persons with a history of accidents and DUIs tend to have other accidents and incidents.

How can you protect yourself against this problem? Include, as part of your initial background check, a simple MVR (or Motor Vehicle Record). These can be obtained from the state DMV (department of motor vehicles). In fact, you shouldn't just limit this request to once, but do so at regular intervals, because driving records change.

Other tips?

  • Have the employee sign an MVR consent form.
  • Make the MVR a condition of employment, and check it before hire.
  • Have a process to check MVRs periodically.
  • Set your own standards for acceptability.

The last tip is very important. Don't depend on an insurance agent to set your standards for you, because you know your business better than he or she does. A company with a mobile sales force taking long road trips between cities will have different needs than a courier or delivery service making dozens of short trips during each business day.

If you want to talk about your insurance needs, give us a call at 512-476-6566.