We see it time and time again. A business will add a driver to its commercial auto insurance policy. When the insurance carrier processes the request, they come back with one of three responses:
- The driver has been successfully added.
- This driver has resulted in an increased premium of $____.
- Given this driver’s recent driving history, he must formally be excluded from coverage.
Obviously, scenario #1 is ideal for all parties. You have hired an employee with an acceptable driving record. Job well done.
Scenario #2 ranges from small increases in premium to very large increases. We’ve seen a commercial auto policy jump from $5,000 to $15,000 annually just by adding one driver. This scenario can be avoided if you simply know this employee’s [or prospective employee’s] driving record before hiring and/or adding him or her to the insurance policy. Sometimes the hire makes so much sense that you are willing to bite the bullet and accept the premium increase you expect is coming.
Scenario #3 can always be avoided if you know the driving record of the employee in advance. This is worst-case scenario if you have already hired the person for a role where driving is required. On top of the employee being unable to drive, you’ve just given the insurance carrier a great reason to drop your account. Insurance carriers don’t want bad drivers; they want businesses who make it a point to have good drivers.
You certainly don’t need to pull Motor Vehicle Reports (MVRs) on all non-driver hires ... although an MVR can sometimes be another indication of what type of person you’re possibly hiring. If this employee will possibly ever get behind the wheel of a company vehicle, an MVR should be pulled before hiring!
Sure, pulling an MVR has a small fee associated with it. This small fee, to best know who is behind the wheel of a company vehicle, is certainly worth the cost. The small fee certainly outweighs the possibility of the insurance carrier taking on thousands of dollars in additional premium to insure a driver with an unclean driving record.
The goal of any business is profitability. Checking MVRs prior to hiring will, over time, save you money on hiring costs, insurance costs, and peace of mind.
Where to Pull a Motor Vehicle Record: There are many web services available that allow you to pull Motor Vehicle Records; conduct a quick Google search to see. Many of our clients use https://mvrcheck.com/.
Additionally, check out our options for business insurance here.