It can take less than 1.5 seconds to lose hundreds of dollars. That’s the standard reaction time used by reconstruction experts when analyzing automobile accidents.
You see, any accident or traffic violation by an employee may ultimately affect the insurance premiums your company pays against corporate vehicles. How can you gauge your risk? With Motor Vehicle Records or MVRs. Every registered driver has an MVR, a national report that follows individuals from state to state, even if they move. Regular review of this data not only helps you monitor current employee safety, but also serves as an excellent screening tool for potential employees. Of course, before accessing any MVR, be mindful of the Fair Credit Reporting Act (FCRA), the Driver’s Privacy Protection Act (DPPA), and any other applicable state statutes or regulations regarding their use. As an example, the FCRA requires written consent from individuals before ordering an MVR.
Based on your employees’ MVRs, insurers determine what, if any increase, they will make to premium rates. Obviously, the more severe an infraction, the greater the potential to impact your insurance costs. The total number of incidents posted against an employee is also considered. Even if relatively minor, they reflect a pattern in driving habits. Each incident on an MVR is assigned a 0-4 point rating based on its severity, and the total points are assumed to predict the likelihood of future accidents.
Obviously, the lower the number of accidents or traffic violations, the lower your overall premium. Clean driving records may also afford your company reduced deductible rates, meaning you’ll have lower out-of-pocket costs if someone does have an accident.
If you aren’t regularly reviewing MVRs now, consider developing a schedule moving forward. Not only can monitoring MVRs help you reduce the chance of future accidents by identifying risky drivers, it also proves due diligence on your part-an important factor if litigation does occur following an incident.
