How Driver History Affects Your Commercial Auto Premium 

Businesses that have commercial auto insurance should be aware that their drivers’ records are more than just paperwork; they’re one of the biggest factors in determining your premium. If your business operates vehicles for deliveries, service calls or equipment transport, understanding how driver history affects your rate can help you manage costs and avoid surprises.

The agents at Insurance Solutions, we help business owners understand these variables and build insurance plans that fit their operations and budgets.

Why Driving Records Matter

Insurance companies assess risk to determine premiums, and driver history is a key risk indicator. A clean record shows responsibility and lowers the chance of accidents or claims. On the other hand, a history of violations suggests a higher risk and can result in higher premiums.

Here’s how driver history impacts your commercial auto insurance:

• Traffic violations—Speeding, reckless driving, and running red lights can drive up your rates.

• Accident history—A history of at-fault accidents, even minor ones, can increase your risk rating.

• License suspensions—These can be red flags that disqualify a driver from being covered under your policy.

• DUI/DWI convictions—These are serious offenses that can dramatically increase premiums or make coverage harder to obtain.

Insurers often evaluate a driver’s record by looking back three to five years. Some also consider experience and age, especially for newer drivers operating heavy-duty vehicles.

Managing Risk With Better Hiring and Oversight

Fortunately, there are steps you can take to maintain a strong driver profile across your business:

• Run motor vehicle reports before hiring new drivers.

• Implement a driver safety and training program to reinforce safe driving habits.

• Monitor performance and take action when patterns of risky behavior emerge.

• Encourage accident reporting even for minor incidents, so issues can be addressed early.

These actions not only reduce your exposure but may also make your business eligible for insurance discounts.

Learn More

Contact our Scottsburg, Indiana, office today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.