In tight freight markets, it can be challenging for motor carriers to maintain high safety standards while ensuring their companies are staffed appropriately. Trucking companies must carefully balance the need to fill vacant positions with hiring qualified, responsible drivers. Those hiring decisions can affect a carrier’s insurance rates.
Currently the only requirement the Federal Motor Carrier Safety Administration has for truck drivers is that they must have a CDL Class A license. The most common way drivers get this license is through driver training programs and technical school.
When it comes to insuring a motor carrier and a driver, however, the insurance industry has set some additional requirements. The generally accepted guidelines are that drivers have a CDL Class A license, be 25 years of age and have two years of driving experience. Insurance companies want to make sure that the correct licensee is driving the correct vehicle. They don’t want someone only licensed to drive a box truck behind the wheel of a semitruck.
Essentially insurance companies want to see how a motor carrier runs its operations. They want the driving history, safety records, individual drivers records, safety programs, driver pools – everything that factors into the likelihood that a carrier will file a claim.
The industry has established a bare minimum of what is accepted, though occasionally insurance companies will make exceptions for well-established motor carriers. Kevin Dupree, executive vice president of sales at Reliance Partners, highlights some exceptions.
“Some insurance carriers will drop the age requirements to 23 if the driver has a history, it’s a well-established company and the driver will turn 25 before the renewal period,” Dupree says. “For newer carriers, exceptions are unlikely as it all comes down to how well the company is run and the insurance companies’ appetite for risk.”
Despite exceptions, the industry as a whole continues to grapple with rising costs. To address this challenge, both carriers and fleet operators are exploring strategies to mitigate rate increases without compromising on safety.
On that score, “A strong driver pool is going to be the solution to maintaining consistent insurance rates,” Dupree says. “Insurance is all numbers and stats. Driver pool is huge and one of the main factors to assessing the risk. Location, experience, violations from the last three years.”
There are a few other things motor carriers can do as well to maintain predictable insurance rates. These include the integration of telematics, ELDs, dash cameras and more. Insurance carriers don’t want telematics for track-and-trace purposes but rather to track driving behavior. Knowing when drivers are harshly braking, making erratic lane changes, speeding, etc. helps an insurance company know how risky drivers’ behavior is.
Dupree says, “The biggest thing is the cameras. Dash cameras that face out to the road are beloved by insurance companies. Many times drivers were found not at fault for an accident as a result of dashcam footage. Some insurance companies will give discounts on cameras or monthly reimbursements as an incentive for carriers having dashcams on all their vehicles.”
Beyond the implementation of dashcams, trucking companies must take a holistic approach to meet both insurance standards and operational efficiency goals. By focusing on comprehensive driver training, proactive vehicle maintenance and data-driven risk management, carriers can position themselves favorably with insurers while optimizing fleet performance.
Dupree’s No. 1 recommendation for trucking companies seeking to ensure they meet insurance standards and maintain operational efficiency.
“Don’t be afraid to turn down a driver. Having a healthy driver pool when it comes to selecting drivers is important because that’s the whole key to the factor. [Insurers] aren’t going to look at one driver; the whole pool is key.”