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Motor Vehicle Reports (MVR) Review Guidelines

MVRs play a critical role in automobile risk evaluation and can be good tools to evaluate the quality and acceptability of drivers. Studies show a correlation between records of prior accidents, violations, and traffic citations and the likelihood of future accidents. The purpose of this sheet is to present guidelines regarding MVRs and assist you in evaluating MVRs.

MVRs continue to be an automobile insurance underwriting tool because of the statistical relationship between past and future driving behavior. The intent is not necessarily to identify acceptable drivers but to identify high-risk drivers

A history of accidents and traffic violations reflects attitudes and habits and can be indicative of a driver’s future accident probability. A recent study by the California Department of Motor Vehicles concluded that drivers with poor MVRs will likely have more accidents than drivers with good records.

Accident History

Compared to a driver with no accidents:

  • A driver with one accident in the last three years is twice as likely to have a future accident.
  • Two accidents, 2.3 times as likely.
  • Three accidents, 3.2 times as likely.
  • Four accidents, 4 times as likely.

Traffic Violations History

  • The California study also concludes that drivers with traffic violations in the past three years will have more future accidents than drivers with good driving records. A driver with one conviction is 1.7 times as likely to have a future accident.
  • Two convictions, 2.2 times as likely.
  • Three convictions, 2.6 times as likely.
  • Four convictions, 3.1 times as likely.

Given the high costs of fleet accidents, organizations that place fleet drivers on the road are always seeking ways to reduce their accident rates. One highly effective strategy is to develop and follow hiring policies that promote fleet driver safety. Before hiring employees who will be required to drive as part of their jobs, be sure to take these steps:

  1. Develop a written hiring policy for driver safety. The policy should spell out the criteria under which a candidate will NOT be hired, including the number of moving violations, accidents, or other incidents that would disqualify a candidate. It should also outline the number of violations or other incidents the driver will be permitted while employed with the company, as well as the penalties for exceeding those figures. Many companies also include policies on use of the company vehicle by an employee’s spouse or driving-aged children.
  2. Discuss the policy during the interview process. Eliminating non-viable candidates early will save time and money. Emphasizing the company’s position on driver safety at the outset helps to build and sustain a corporate culture of driver safety.
  3. Obtain driving records before extending job offers. Make it a practice to check a candidate’s motor vehicle record as part of the interview and evaluation process but be sure to obtain the driver’s written consent first. Some states have a required format for this written consent. There are also laws that protect the privacy of the information.
    Evaluating MVRs

When evaluating driver records, it is good practice to remember two principles:

  1. The frequency of accident and/or traffic convictions is more significant than their severity.
  2. A recent history of accidents and/or convictions is more significant than older history.

What To Look For

MVRs should be reviewed during the hiring process as well as at least annually for all drivers. Items to consider in the review include:

  • Driver Name and Date of Birth — Make sure the name of the driver matches the name on the MVR as well as at least the date of birth of the driver. There could be instances where the applicant mistakenly reported the incorrect license number or the incorrect number was requested from the MVR vendor. Requiring several forms of identification is a good practice.
  • License Status — Make sure the MVR shows a “valid” status for the type of vehicle intended for that person to drive.
  • License Type — Make sure the license type stated on the MVR matches the type of license needed (i.e. Commercial Driver License [CDL], Chauffeur License, Tanker/HazMat endorsements).
  • State Issuing License — Is the state issuing the driver license the same as the driver’s residence or state of employment? While there may be very legitimate reasons for a difference, there could be instances where a driver has a license in more than one state and one license may have numerous violations while the other is clear. CDL drivers are restricted to a single license for their state or jurisdiction of domicile.
  • Experience — Drivers of commercial vehicles (over 10,000 lbs. gross vehicle weight) must be at least 21 years old. While the intent is not to be age discriminatory, it is recommended to look for drivers to be 21 years of age with 3 years experience or 25 years of age with less than 3 years experience. The experience should be with the type of vehicle the driver would be operating. Additionally, drivers aged 65 and over should have an attending physician’s report certifying the individual’s ability to safely operate a motor vehicle. While the Department of Transportation (DOT) requires a two-year medical certificate from a medical examiner, this is a minimum. An annual physician’s report is a good practice.

Definitions

Serious offenses as outlined in 49 CFR 383.51 for commercial drivers are applicable to any type of company driver. The following definitions may assist in evaluating employee driving records:

  • Clear Driver — A driver whose MVR shows no minor convictions and no at-fault accidents for the past three years, and has no major convictions.
  • Marginal Driver — A driver with a past history from 3 to 8 years old, with two to three “major convictions.” A driver with a combination of accidents (regardless of fault) and other moving violations which total three during the previous three years.
  • Excluded Driver — A driver who has had a major conviction over the past five years or three or more incidents (at-fault accidents or minor convictions) in the past three years. A driver with an international or foreign driver’s license.

Note: State law may require drivers to be re-licensed within a certain time frame (e.g., 30 to 90 days) of moving to different state. Drivers who are not licensed in the state where they reside within the required time should be considered as “excluded drivers.”

Major Convictions — Variations of state motor vehicle codes exist, but examples include the following:

  • Driving while under the influence of alcohol or drugs (DUI or DWI)
  • Failure to stop and report an accident
  • Hit and run
  • Using a motor vehicle for the commission of a felony
  • Attempting to elude an officer of the law
  • Permitting an unlicensed person to drive
  • Assault, manslaughter, or negligent homicide arising out of the operation of a motor vehicle
  • Driving while unlicensed or with a suspended or revoked license
  • Reckless driving
  • Speed contests, drag or highway racing
  • Possession of an opened alcoholic beverage container
  • Major speeding conviction (20 mph or more over the posted speed limit where specified on the MVR)
  • Illegal passing of a school bus
  • Railroad grade crossing violation
  • Other violations considered

Minor Convictions — Examples of minor convictions include the following:

  • Minor speeding conviction (less than 20 mph over the posted speed limit where specified on the MVR)
  • Driving too fast for conditions
  • Unsafe lane changes
  • Failure to stop or yield the right of way
  • Following too closely
  • Any standard moving violation that does not fall into the major conviction category

At-Fault Accident — Any motor vehicle accident arising out of negligent operation of the vehicle for which the driver was at fault. Also, any other vehicle accident where reasonable assurance of the driver not being at fault cannot be obtained.

Ongoing Review

  • Periodic monitoring of existing drivers. Record reviews are normally conducted following an accident and annually for existing drivers (semi-annually for larger operations). A driver’s motor vehicle record may become unacceptable during the course of employment.
  • Problems detected in a driving record review should be used to initiate personal counseling, remedial training, and/or reassignment to non-driving positions.
  • A combination of classroom training (tapes/interactive sessions) and behind-the-wheel coaching may aid in sharpening the driving skills of excluded/marginal drivers.

Handling Drivers With Poor MVRs

If permitted in the applicable state, coverage for the driver may be excluded by an insurance carrier. Alternatives that may be considered for handling drivers with poor MVRs include designating a vehicle to which the driver will be restricted or placing the driver in a non-driving position. If driving is essential for a job, make sure personnel policies are appropriate for your state. Consider checking with your insurance broker and attorney.

Reflection

  • Drivers typically are only ticketed on an average of one time for every 200 or more times that they have broken the law.
  • Drivers who have had three or more accidents in the last three years (regardless of fault) have a 300% greater chance for future accident frequency to continue.
  • Drivers who have had three violations in the last three years will have a 325% greater chance for future accidents.
  • In 2002, federal regulations changed to capture more driver information on MVRs, including violations while driving non-commercial vehicles. There may be variations in how consistently passenger vehicles violations are reported. The employer always needs to remember that any records will become public if the driver is involved in a serious crash. Driver violations, passenger or commercial, may be an indicator of driver behavior and should be part of employment considerations.

Note:

Individual violations among Commercial Drivers are a critical part of the company's safety performance. The Department of Transportation (DOT) uses driver violations as part of a company’s SafeStat score, which is accessible for customers to compare safety performance with competitors.

Privacy Issues

While it is XL Environmental’s policy not to release MVRs to anyone due to privacy concerns, it is recommended that you check with your insurance agent or broker regarding the privacy rights of your employees and your obligations as an employer regarding obtaining, using, and distributing MVRs. There are various vendors who provide MVRs as a service. Generally, a state licensing or motor vehicle department should have information on procedures and vendors of such services.

XL Environmental • Risk Control Division • 520 Eagleview Boulevard, PO Box 636, Exton, PA 19341 • Phone: 800-327-1414 • Fax: 610-458-7285 • xlenvironmental.com


XL Environmental is a division of XL Specialty Insurance Company.
 
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