Don't Jeopardize Your Commercial Auto Insurance RatesAs a business owner, you oversee the hiring of employees that best represent the interests of your business.  Hiring the right people is essential, especially if you utilize fleet vehicles.  Imagine hiring a few drivers without doing your homework, only to have them involved in at-fault accidents.  With this, you not only are jeopardizing your business reputation, but you will also be faced with higher commercial auto insurance rates.  Your fleet operators are a key generator of your auto insurance rates, so you need to be careful who you hire.

Considerations for Favorable Commercial Auto Insurance Pricing

As a business owner who uses fleet vehicles, you understand that your employees’ driving record is key when it comes to pricing your insurance premium. Trying to take short cuts in the hiring of your fleet drivers will never benefit you or your business.  It only takes one reckless driver to negate a good loss experience status, so before you allow anyone to operate one of your fleet cars, you need to know certain logistics that can protect your commercial auto insurance rates. Before hiring any applicant(s), do the following:

Acquire an MVR- A motor vehicle report is a driving history report on drivers that reveals prior accidents, traffic violations, license status, age, and other information.  Keep in mind that having a history of at-fault accidents is a prediction of future accidents. Knowing an applicants’ past driving history is a key indicator of what type of driver he/she will be for your company.  Know your risks before hiring.

Review Loss Experiences- Studies show that premium increases on auto insurance policies are most likely a direct result of having at-fault accidents. Look at your record of loss experiences to find what may be the cause of an increase or reduction of insurance rates.  If your employees have had a past driving history including at-fault accidents, you need to reconsider.

Do Background Checks– Your employees/drivers are a direct reflection on you and your business so make sure you do background checks before hiring.

Consider the Age- Drivers aged 24 and younger are inexperienced and pose a higher risk for at-fault accidents than those more experienced drivers. In fact, some insurers are even hesitant to add younger drivers to a commercial auto insurance policy given the fact some of the fleet vehicles can weigh more than 10,000 pounds. Would you be comfortable hiring a young, inexperienced driver to operate a vehicle that heavy?

Review Vehicles Under the Business Auto Policy- If you are currently insuring any personal vehicles under your commercial auto policy, you should remove them and insure them under a personal N.Y. auto insurance policy.  Doing this can mean a more favorable premium pricing for your commercial auto insurance policy.

If you don’t do your homework on each driving applicant, it can mean ruining your good driving experience for your business which will create a spike in your insurance costs.  Don’t let one bad driver risk your good standing as it could take many years to earn the credit back if you hire someone who is having at-fault wrecks.

Minimize Your Risks by Hiring the Right Fleet Drivers

Just remember that employing higher risk employees is a direct correlation to higher insurance rates for your organization. If you have any further questions or concerns regarding your N.Y. commercial insurance rates or insurance, contact our offices at Cameron Insurance Group and we will assist you with all your insurance needs.