Commercial Auto Claims

The cost of commercial auto claims has gone up in recent years- vehicle repair costs have shot up tremendously, lawsuits have grown more expensive, and we are continuing to see inexperienced drivers on the roads. All of this plays a major role in the claims process and ultimately leads to more costly commercial auto insurance claims. In return, this causes premiums to rise. The big question is what can you, the insured, do to lower these costs and keep things more balanced? Let us walk you through a few of the best options for doing just that!

First, ask yourself, who are you allowing to get behind the wheel of your vehicles? It can be difficult to find workers with driving records that are accepted by carriers, making it tempting to put unqualified drivers behind the wheel. This is a dangerous, and an accident waiting to happen! Be conscious in screening drivers properly when hiring them on- dutifully check not only their driving record, but also their health history. Be sure and follow up on these screenings at least annually- don’t assume nothing is wrong just because you haven’t been notified! It is always a good idea to establish eligibility criteria for hiring practices, and stick to it, early on.

Next, you want to see how you are tracking your driver’s behavior on the road. It’s always best to gather objective data on driver behavior and vehicle use, that way there is no question about what is happening. Dashcams and telematics are great tools used for tracking a vehicle’s location, speed, hard braking, and even when the car is idling excessively and wasting fuel. Dashcams can also help adjusters assign fault after an accident. These tools also help lower claims, as it is proven that drivers will improve their behavior when they know that they are being observed. You can also easily spot the ones who engage in risky driving practices!

Another question to consider is what training are you providing your drivers? Investing in proactive measure like defensive driving classes, and learning about the dangers of distracted driving, can greatly limit claim exposure. Here are six steps to promote defensive driving that you should teach your employees:

1. See the hazard, understand the defense, and act in time
2. Do not use a cell phone while driving
3. Inspect your vehicle and check your tires daily
4. Wear seatbelts- even in the back seat
5. Cautiously approach intersections, with your foot on the brake
6. Always follow at a distance

When considering the risks, are you thinking them through thoroughly? You have your commercial auto policy. It covers all your trucks and trailers for everything from business property to medical payments to uninsured motorists. You’re totally covered, right? This answer depends on the specifics of your policy and your understanding of the covered risks. Let’s say that one of your employees is asked to run an errand, but there isn’t a company vehicle available for use currently. No problem, right? Your employee gladly volunteers their personal vehicle for this errand! On their way back to the office, your employee was involved in an accident. Unfortunately, your policy does not include “hired-non-owned” vehicles, so this claim is denied. This is a prime example of considering risk before convenience!

Lastly, you must consider what impact your driving safety record has on your business. Do you have your company logo on your trucks or vehicles? What do other drivers think when they see your logo on the road? This is a huge question to consider, as this logo makes practicing safe driving even more important as a representation of your business!

When you’re considering the best way to protect your business from high auto claims, Widener Insurance Agency is here to help you make the best decisions! We want to guide you every step of the way!