Effective Driver Management

A good driver management program is an essential feature for any business that operates a vehicle fleet. One reason is that poor drivers can have a significant impact on automobile insurance premiums. This article outlines some of the underwriting procedures that insurance companies use when reviewing accounts for acceptability and pricing. Some practical approaches to driver review and training are also demonstrated. To determine whether or not an operator is deemed acceptable by an insurance company, underwriters use a point system driven by the number of infractions within a given period and the severity of those infractions. Most insurance companies do not differentiate between adverse activity stemming from personal vehicle use as opposed to business vehicle use when evaluating drivers. Once the acceptable drivers list has been established, insurance companies then look for proper internal loss control procedures to be in place. Companies can improve their driver management program by training their drivers, maintaining their equipment, investing in a global positioning system, joining industry associations and establishing driver incentives.


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Filing Info

  • Accession Number: 01013306
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Nov 30 2005 11:46PM