Speeding Violations: A Costly Ride for Commercial Auto Insurance
For moving and storage operations relying on a fleet of vehicles, commercial auto insurance can be a significant expense. So, it’s crucial to understand the factors that are within your control and influence your premium. Chiefly, speeding violations can have a surprisingly powerful and negative impact on the underwriting of your policy and, ultimately, your wallet.
The Underwriting Perspective: Risk and Responsibility
Commercial auto insurance underwriters are in the business of assessing risk. We look at a variety of factors to determine how likely your drivers are to be involved in accidents and generate claims. Driver behavior is a primary consideration, so we rely heavily on Motor Vehicle Reports (MVRs) to assess driver safety behind the wheel. From an underwriter’s perspective, a fleet with speeding violations suggests a pattern of risky behavior and a higher probability of future incidents. Even seemingly minor infractions can add up across a large fleet, creating an overall risk profile that can lead to higher premiums.
The Ripple Effect: How Speeding Tickets Impact Your Premiums
Here’s how speeding violations can translate into increased commercial fleet insurance costs:
- Increased Risk, Higher Premiums: Insurers view drivers with speeding violations as a higher risk due to the association between speeding and more frequent and severe accidents. This translates to higher premiums for your fleet’s coverage.
- Loss of Discounts: Some insurance providers offer discounts for fleets with a demonstrated history of safe driving. Speeding violations can jeopardize these discounts, leading to higher overall costs.
- Potential Policy Non-Renewal or Cancellation: A pattern of multiple or severe speeding violations could lead to your insurer deciding not to renew your policy. This can make it difficult and expensive to secure coverage elsewhere.
Beyond the Obvious: Personal Violations and Commercial Insurance
Personal speeding tickets can also impact commercial auto insurance premiums and the cost of operations. High speed violations in a personal auto can cause a driver to no longer qualify to drive for an insured or cause higher premiums to allow for drivers that show a recklessness for speed. Insurers often look at a driver’s overall history, on and off the clock, to assess risk. When a commercial driver ignores road safety personally, underwriters believe that will be how they treat their commercial driving responsibilities, as well.
Mitigating the Impact: Strategies for Fleet Managers
There are many loss control efforts that fleet managers can implement to minimize the financial consequences:
- Implement a Driver Safety Program with driver screening processes to evaluate backgrounds and driving records before hiring.
- Explore Telematics and Driver Monitoring to record and analyze driver behavior, including speeding, harsh braking, and distracted driving. This data can provide valuable insights for improving driver safety and potentially qualifying for discounts.
- Address Violations Proactively and facilitate driver training courses.
- Set up a reward system for drivers that keep clean MVRs. Make it worth their while to drive safely and save the company money.
- Be Transparent with Your Insurance Provider about any violations or changes in your fleet’s operations to foster a stronger relationship and potentially lead to more favorable terms.
Stay in the Slow Lane – You’ll Get Ahead of Rising Insurance Premiums!
Written By: David Duncan
Executive Underwriter David Duncan’s insurance career spans 24 years, including 3 years with the MOVER’S CHOICE Underwriting Team. David holds a Bachelor’s degree in Mass Media Communications, a Master of Arts in Christian Education/Youth Ministry, and a Master’s degree in Counselor Education/Student Development. He and his wife like to stay “moving” in their 35′ Motor Coach RV, traveling the country.
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