Motor vehicle accident claims continue to escalate, costing employers more than $56 billion in 2017.1 Whether you’re a trucking company, or a business with a dedicated transportation fleet, your auto insurance has likely increased as a result.

Motor vehicle record (MVR) monitoring may be the solution.

Many drivers either don’t know when their MVR status changes, and/or fail to tell employers when they do know. Unfortunately, when they are involved in an accident that is litigated, the plaintiff’s attorney will likely check the driver’s MVR. If the driver has a revoked license –for any litany of reasons – it can have a huge impact on the cost of a claim/settlement. According to the National Highway Traffic Safety Administration (NHTSA), as many as 19% of motor vehicle fatalities involved drivers with invalid licenses.2

MVR reviews are currently mandated only for commercial fleet carriers - both upon hire and annually thereafter. And, because it can be so effective in identifying at risk drivers, many insurance companies are requiring it prior to securing coverage. Even if you aren’t a commercial fleet carrier, more and more businesses are adopting the practice of reviewing MVR information for all drivers, as it is important to know the record of everyone working behind the wheel for your organization.

Understanding MVR Monitoring

Not all MVR monitoring is created equal, though. There are both public and private options available and numerous rating forms, none of which are standard. Consider the following best practices for instituting MVR monitoring on a regular basis:

  1. Two monitoring options – choose one. About a dozen U.S. states, including Michigan, New York and California currently offer MVR monitoring to businesses that employ drivers in their state. When companies subscribe to state MVR monitoring, they will be notified of any change in driver MVR status – a suspension, new endorsement, or other limitation. Remember that each state is only knowledgeable of drivers registered in that state and will not include those from or working in other jurisdictions. For example, for a fleet carrier in New York, who could easily have drivers living in in New Jersey or CT and/or working across state lines, it wouldn’t be enough to only subscribe to the NY Lens Program. Third-party or private MVR monitoring allows businesses to receive information about their drivers’ MVRs across all 50 states – for a higher monthly fee, of course.
  2. Know what you’re viewing. Because there’s no federal standard for MVR violations and descriptions, each state and third-party monitoring company will display the MVR differently. Some will provide a scoring mechanism for MVRs, others will not. Before choosing an MVR monitoring service, make sure you’re familiar with how that entity displays the MVR, and that it is aligned with your business’ recordkeeping.
  3. Educate drivers. One of the most proactive ways to reduce MVR issues across your fleet is to educate drivers on how to protect their MVR scores. Make sure drivers know what issues will cause a change in status, and how the state transportation authority alerts them when there is a status change. If drivers continually face the same MVR issue, work with them to proactively solve the problem.

Contact your HUB Transportation expert for more information on how MVR monitoring can reduce your auto premium and keep your fleet safe.

1https://www.fleetowner.com/safety/article/21702332/vehicle-accidents-cost-companies-57b-in-2017

2https://crashstats.nhtsa.dot.gov/Api/Public/ViewPublication/812046