What is an MVR, what is it used for, and who should be checked? A motor vehicle record (MVR) is a historical driving record that can be used to determine business risk associated with current and potential drivers. MVRs may include:
- Candidate’s driving history for a selected period
- Speeding or other moving violations
- Chargeable accidents
- DUI offenses
- Suspensions or revocations
- Accumulation of points
- Driver License Number
- Any restrictions on a driver’s license
- Vehicular crimes
Insurance companies can use an MVR to determine the exposure in insuring a specific driver. If a potential driver or existing driver has a poor driving history with several suspensions, revocations, or moving violations, then the insurance company may insure that driver at a higher premium level. Worse yet, the insurance company may not insure the specific driver at all. Simply put, the better the driving record of the employee, the better your chances are of getting affordable auto coverage for your business.
For a business with delivery, the risk associated with a single catastrophic auto accident could be enormous. One way to manage this risk is by using MVRs to select and retain quality delivery drivers. With an MVR, the business manager can identify high-risk drivers before they are involved in an auto accident. It can also can help a company improve on safety by targeting past driver behavior with future training programs. For example, if your drivers have a history of small backing-related accidents, then a training program can be developed to reduce these auto claims.
At a minimum, any company that has delivery drivers should run an MVR at the time of hire and annually thereafter to ensure they have good driving records and are properly licensed. Since MVRs are considered a type of background check, it is important to develop a company policy that has been reviewed by your legal representative. This policy should include anyone using a company-owned vehicle or a personal vehicle on company time. A company can spend thousands of dollars in court costs and attorney’s fees if the driver-screening process is not completed appropriately.
While an insurance agent may help you with some of the above steps or check driver MVRs on the behalf of the insurance carrier, the management and retention of quality of drivers is the basic responsibility of your business. This important management process should not be delegated to an outside party.
An MVR is an important tool that can be used by an insurance company and/or a business to assess the risk of both potential and current drivers. Using MVR’s to retain quality drivers may reduce the costs related to insurance premiums, court costs/attorney’s fees, and equipment repairs.
When it comes to risk management, prevention is key. Click here for more resources from Society’s risk control experts to help strengthen your loss prevention efforts and provide sustainable real-world solutions for your business. For more information on how Society Insurance can protect your business, contact your local Society insurance agent.