Restoration Insurance Tips: Evaluating Motor Vehicle Records (MVRs)
Employees’ driving records can have a dramatic affect your restoration company’s auto premiums. So what do you do when you’ve hired an employee specifically to drive only to find out from the insurance company his MVR has been rejected or his driving record is going to increase your insurance premiums?
We have come across this scenario with many of our restoration contractor clients. So in an effort to help your company avoid these scenarios we want to provide you with some ideas on how to ensure you are hiring safe drivers.
Have a Policy
The first and most important thing is for your organization to have an MVR policy that clearly states what qualifying offenses or accumulation of accidents and/or violations will result in limiting or removing the driver from any driving duties or other adverse action.
Generally, most organizations look at three to five years of driving history when assessing an MVR. Some states limit this by providing three years of data. Remember that when you are evaluating an MVR that frequency is just as much as concern as severity. So someone who has four minor traffic citations is just as much a concern as someone who has a major violation.
Everyone, including senior executives, family members, top sales people or volunteers, should be held to the same MVR standards.
Most organizations use some type of tool to assist in the evaluation of a driver’s accident and violation history. There is the MVR Grid System, MVR Point System, MVR Flow Charter, and MVR Policy Statement. For purposes of this post, we are going to share the MVR Policy Statement. If you would like to find out more about the other evaluation tools please click here.
Examples of major violations:
•Leaving the scene of an accident
•Driving under the influence of drugs or alcohol
•Racing or excessive speed (>20 MPH over speed limit)
•Reckless, negligent or careless driving
•Felony, homicide or manslaughter involving the use of a motor vehicle
•License suspension or revocation resulting from accidents or moving violations
•Following too closely or tailgating
•Attempting to elude a police officer
Examples of minor violations:
•Speeding < 20 MPH
•Failure to obey sign
•Failure to yield
Examples of non-moving* violations:
•Motor vehicle equipment violations
•Failure to have a valid operator’s license available where one actually exists
*Non-moving violations are typically not included when evaluating MVRs