For businesses that depend on vehicles—whether for transporting goods, meeting clients, or managing a fleet—driver safety is a top priority. One essential tool for mitigating risks and ensuring compliance is Motor Vehicle Records (MVRs). These records not only help businesses evaluate current and potential drivers but also safeguard assets, lower insurance costs, and maintain compliance with federal regulations.
Here’s a closer look at how MVRs can benefit your business and why they are crucial for managing your fleet effectively.
What Are MVRs?
MVRs are comprehensive records of an individual’s driving history, typically spanning several years. They include critical details such as:
- Moving violations (e.g., speeding, reckless driving)
- At-fault accidents
- DUI offenses
- License suspensions or revocations
- Vehicular crimes and point accumulations
- Driver’s license details and any restrictions
For employers, these records offer valuable insights into a driver’s past performance and habits. A poor driving history often correlates with a higher likelihood of future accidents, posing risks to your business and its operations. Moreover, insurance companies rely on MVRs when assessing risk. Drivers with multiple violations can lead to increased premiums or disqualification from coverage.
Why MVRs Are Essential
By integrating MVR checks into your hiring and management processes, you can:
- Reduce Risks: Identify and avoid hiring drivers with a history of accidents or violations.
- Control Insurance Costs: Demonstrate to insurers that you prioritize safety, potentially qualifying for lower premiums.
- Prevent Disruptions: Ensure only qualified and safe drivers represent your business on the road.
FMCSA Compliance for Commercial Drivers
If your business operates commercial vehicles, Federal Motor Carrier Safety Administration (FMCSA) regulations require specific actions regarding MVRs. These include:
- Initial Review: Obtain and review MVRs from all states where a driver has held a license within the past three years.
- Driver Qualification (DQ) Files: Maintain MVRs in each driver’s DQ file, along with a record of their annual review.
- Ongoing Monitoring: Request updated MVRs annually to assess continued compliance and driving safety.
Failing to comply with FMCSA regulations can result in significant fines and liability risks, making it essential to establish robust procedures for obtaining and reviewing MVRs.
Setting Clear MVR Standards
Establishing consistent MVR standards for your drivers is vital for maintaining safety and avoiding unnecessary risks. Consider implementing the following criteria:
- Licensing: Drivers must hold a valid license for the state in which they reside and have at least five years of driving experience.
- Violation History: Drivers should have no more than three moving violations or two at-fault accidents within the last three years. A combination of one moving violation and one at-fault accident during this period is also cause for concern.
- Serious Offenses: Drivers with serious violations, such as DUI, reckless driving, or fleeing an accident scene, should be disqualified.
By communicating these standards clearly to employees and candidates, businesses can establish a culture of safety and accountability.
Obtaining and Reviewing MVRs
MVRs can be secured through several channels:
- State Departments of Motor Vehicles (DMVs): The most direct and reliable source for MVRs.
- Third-Party Services: Convenient but often more expensive.
- Insurance Professionals: Insurance companies may request MVRs for underwriting purposes, though they cannot share the information directly with employers.
Before requesting an MVR, businesses must obtain written consent from the driver or candidate. Once the MVR is received, review it carefully to ensure it meets your company’s standards. Many states also offer notification systems that alert businesses to changes in an employee’s driving record, enabling timely interventions and corrective measures.
Mitigating Risk with Insurance
Despite taking every precaution, accidents can still occur. That’s why comprehensive commercial vehicle insurance is an essential safety net for businesses. Beyond MVR reviews, partnering with an experienced insurance provider ensures you have coverage tailored to your needs, protecting you from unexpected liabilities.
At McHugh Insurance Group, we specialize in helping businesses in Delaware, New Jersey, Pennsylvania, and Maryland manage risks and secure customized insurance solutions. From guiding you on MVR practices to structuring the right coverage, we’re here to help.
Ready to protect your fleet and streamline your insurance? Visit McHugh Insurance Group today for personalized support.