Why Commercial Drivers Need An Insurance And Driving History Letter
One of the issues encountered when quoting commercial vehicle insurance is that quite often there is insufficient information about the drivers who will be operating those vehicles, be it their driving record and/or insurance history. In addition to that, there will be additional information required about the company in general, such as what is being hauled, to where, and other such details. We’re here to help and have a basic list of what is required in order to properly quote and set up a commercial vehicle policy.
Basically, the more information about their drivers and the cartage business which is provided by the transportation company applying for insurance, the lower rates! And in an industry where margins can be slim, who doesn’t want to save some hard earned dollars?
Of course, Commercial insurance is a lot more complicated than anything in the personal lines and that means the process can take longer and premiums can be higher if we don’t have all the necessary details.
Complicating things further is the fact that quite often an employee operating a company owned vehicle was likely doing so for previous employers as well and subsequently was covered by that carrier’s insurance. Not a big issue in itself but without a record of that driving and insurance history, the risk rating process is very difficult and will likely result in very high premiums.
In order to provide the neeeded information, it is critical to get an experience letter for each driver . Think of it as a reference letter and something will go a long way in verifying the insurance histroy and helping properly establish a rating for your insurance premiums.
Experience Letters or Loss Runs for the company and/or each driver showing a minimum of 3 years prior insurance history are the best and these letters can be provided by the current or previous insurance companies confirming the details about that history.
6 Driving History Details Required To Obtain A Proper Insurance Premium Rating
- Details of what was insured such as the type of truck and trailer.
- The information for who is on the insurance policy, typically the registered owner of the vehicle but there may also be other people’s names if multiple drivers were insured.
- The effective date and end date of the insurance
- The policy number
- Any and all claims made against the policy during the time of insurance, with details of the cause of the claim and how much was paid.
- Information on why the policy ended, including if it was canceled for nonpayment or if you owe outstanding money for those insurance policy premiums.
In addition to the insurance history letter, an up to date copy of a commercial Motor Vehicle Registry driver’s abstract for each driver will provide a record of their driving history and supplement the insurance history letter.
In general, whether you’re a large trucking company with a fleet of trucks or a single owner operator, the information required to get insurance will be exactly the same, as listed below.
Completed Long Haul Trucking Questionnaire
IFTA Reports for the last 4 quarters
List of all Drivers – See Trucking Insurance Questionnaire Link Here
List of all Trucks and Trailers – See trucking Insurance Questionnaire Link Here
List of cargo/commodities carried – See Trucking Insurance Questionnaire Link Here
Additional information on Commercial Vehicle Safety Compliance in Alberta
Since it will be required by all insurance companies providing trucking insurance, presenting a letter of experience and driver’s abstract is an easy way for you to prove your prior insurance history and driving experience and ultimately lower your premiums.
Once you have compiled the required information and wish to proceed with a quote, please contact BlueCircle Insurance commercial fleet expert Dan Whaley
You can also check out our blog post that has a copy and paste version of the Long Haul Trucking Questionnaire