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Can Bad Drivers Be Insured?

Can Bad Drivers Be Insured?

Certain classes of business rely heavily on drivers to make things happen. Contractors, for example, typically have a larger number of drivers than an office, since they have to go from job site to job site in company vehicles. In a perfect world anyone hired by your company could be added to your commercial auto policy and allowed to drive. Unfortunately, some prospective employees have less-than-desirable driving records, making them ineligible to insure on your company auto policy.  Sometimes those drivers are current employees or company officers. Here’s how to spot an ineligible or difficult to insure driver, and what to do about it. Get An MVR A recent motor vehicle report (MVR) is the only way to be sure of an employee’s current driving record.  Insurance companies prefer that the MVR be less than 30 days old in order to be accepted as part of the underwriting process.  There are three ways to obtain an MVR: Have prospective employees bring their own MVR. A stop at the local DMV will result in a certified copy of the applicant’s MVR. There is usually a fee associated with this service. Check with your state’s Department of Motor Vehicles to find out the fee for your state. This is the most cost-effective hiring solution, as the fee and responsibility are on the applicant. Contract with a company that provides MVRs. There are many websites where employers can pull MVRs for applicants. However, there are fees associated with this service for each abstract that is pulled and the costs can add up quickly. Insurance company or broker pulls the MVR. Many policyholders...
How New Employees Affect Your Auto Insurance

How New Employees Affect Your Auto Insurance

How do I know if my auto insurance rates are going to go up when hiring a new employee? Hiring a new employee impacts many facets of your business, including your insurance.  If the employee is to be included as a driver on your company auto insurance policy, there are ways to determine if your auto insurance premium will be affected. In most cases the auto insurance premium will not be affected until the renewal of the policy, but in some rare cases it can be affected right away.  Here are three ways to determine whether a driver is going to affect your auto insurance premium. 1. Ask Your Agent To determine whether an employee will affect your policy premium is to ask your agent to check the employee driving record.  Your agent will ask you for the name and date of birth of the driver, as well as the state and number of the driver’s license.   An authorization form signed by the prospective employee consenting to the Motor Vehicle Report (MVR) request may be required. There may be a charge for these services, so it is best to use this option only for drivers who have reached the final stages of the hiring process.  Your agent will NOT be able to provide a copy of the MVR for your records.  They also cannot advise you whether or not to hire the employee.  The only information the agent can provide is whether or not your insurance carrier would consider the prospective employee to be an insurable driver or an uninsurable driver.  If the driver is uninsurable driver and...