
Commercial Fleet Management: 15 Auto Insurance Red Flags to Avoid
5-Minute Guide on Commercial Fleet Management - Commercial Auto Underwriting Red Flags
Intended Audience:
Business Owners, Fleet Managers & Organizational Maintenance Personnel.
Commercial Auto Insurance Requirements:
All 50-states require commercial auto liability if:
The vehicle is specifically titled to a business entity.
It is used primarily for business operations.
It is driven by employees for work-related purposes.
Commercial Auto Comprehensive Insurance can be required when:
The vehicle is leased or financed.
Required by a contract such as for the delivery of valuable goods.
Required for compliance with a corporate risk management program.
Needed for travel across the Canadian or Mexican borders.
15-Commercial Auto Underwriting Red Flags:
Entities that have had their commercial auto policies cancelled or non-renewed.
Incomplete or inaccurate insurance applications.
High risk business groups like long distance trucking and delivery services.
Excessive claims history to include crashes, theft & vandalism.
Poor DOT compliance history.
No, or inadequate fleet safety program.
Inadequate new driver hiring process.
Multiple drivers with poor driving records.
A high percentage of relatively inexperienced drivers.
A greater than 50% driver turnover rate with a non-long haul fleet.
No telematics or dash cam use for driver monitoring.
Older or poorly maintained vehicles.
The use of business vehicles for personal use without proper controls.
Poor garaging location making vehicles susceptible to theft or vandalism.
No claims management or incident response capabilities.
The Bottom Line:
Commercial auto insurance premiums can vary by as much as 400% between what underwriters consider as “good risk ” versus “bad risk” accounts.
“Bad Risk” accounts may have to pay up to $15,000 in annual premiums on just one vehicle.
For Additional Information or questions on this Subject, Contact Centurion’s Loss Control Manager, Rob Brooks, at:
(606)434-0739
Disclaimer:
This publication is intended for general educational purposes only, and is not to be considered as business, financial or legal advice.
Readers should consult with appropriate professionals before making any decisions based on the content of this newsletter.
Some of the data &/or statistics referenced within were obtained using artificial intelligence.
Centurion Insurance Services and the writer make no guarantees or warranties of any kind, express or implied, about the reliability, completeness or suitability of the information contained herein.
We will not be liable for any losses or damages arising from the use of the information provided.