Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
For the last several years, the insurance industry has seen a significant increase in auto rates. In 2023, the top ten auto carriers in the US all saw double digit rate increases. This, in addition to the rate increases we’ve seen since 2018, equates to rates anywhere from 20-50% higher than we had just a few years ago. According to US auto insurers, these rate increases are still not keeping up with the skyrocketing claim frequency and severity. Therefore, we are likely to continue to see auto rates increase before things level off.
With that being said, positioning your company now with a best practice fleet safety program is more important than ever. It is also critical that business owners work closely with their insurance brokers to develop a program that will not only improve safety on the roads, but will also highlight the efforts a company is focusing on from an underwriting perspective. Minimizing rate increases only comes with the collective efforts of the business owner and their insurance broker. In order to even consider receiving any credits on auto rates, a business needs to stand out from other submissions an underwriter is reviewing. Rancho Mesa understands how important this is which is why we have developed our detailed Fleet Supplemental Application and SafetyOne™ Driver’s Training Program.
As an insurance broker, a vital role we play is representing a business to the insurance marketplace. Providing underwriting details of the business to insurance carriers in an effort to make them interested in quoting the insurance is only the first step. Providing in depth details relating to fleet safety and efforts that go beyond what an underwriter is used to seeing is what Rancho Mesa strives to submit. The more details an underwriter has regarding an auto submission, the more comfortable they will be with the company’s program, which generally leads to more subjective credits. Rancho Mesa developed a Fleet Safety supplemental that dives deep into a business’s fleet program. It collects general information such as fleet size, driving radius, and description of vehicle usage. It also explores details surrounding safety management. Examples of the information collected include:
Safety controls
GPS or telematics details relating to maintenance, speed, location, routing, etc.
Accident reporting
Fleet safety courses provided
The Fleet Supplemental also provides vehicle and driver information such as:
Information relating to any permanently attached equipment
Vehicle inspection and maintenance program
Where vehicles are parked overnight
Personal usage policy with employees
Safeguards in place relating to storing of vehicles
Process for reviewing and selecting drivers
Review of Motor Vehicle Reports
Pre-employment physicals, drug testing, and alcohol testing
Another useful tool relating to fleet safety is Rancho Mesa’s proprietary application called SafetyOne. Rancho Mesa has developed a driver training program that is accessed through the SafetyOne website. The administrator can assign the online driver training courses to the appropriate employees where they can easily be completed from a computer or mobile device.
Since each employee has their own login and password to access their trainings, the records are always easy to locate in the platform.
Driver training courses include both a video and quiz. And, they are offered in both English and Spanish. Employee watch the video and then take the quiz. This can be done as many times as needed in order to pass the course. We want people to really understand the content, not just get a minimum passing score.
Courses include:
Distracted Driving – The course covers the cost of distracted driving, “multi-tasking”, technology and distraction, eliminating distractions before you drive, cell phones, and fighting distraction on the road.
Driver Safety – The course covers preparing to drive safely, driving fundamentals, driving with other vehicles, driving a night and bad weather, distracted driving and road rage, and handling an emergency.
Driving Defensively – This course covers the fundamentals of driving defensively, dealing with distracted drivers, coping with aggressive drivers, using your headlights, driving safely in bad weather, handling a blowout, and sharing the road with trucks and buses.
Driving Safety – This course is a refresher course that covers preparing to drive safely, the fundamentals of safe driving, driving safely when sharing the road with different types of vehicles, staying safe when driving at night and in inclement weather, road rage and distracted driving, and what to do if there’s an emergency.
While the auto marketplace continues to see rates increase, now is not the time for businesses to sit back idly and be complacent with their fleet safety program. Working with your insurance broker to improve your fleet safety program and sharing this information with insurance companies can have a significant effect on your auto premiums.
If you would like to discuss how Rancho Mesa can assist in improving your auto risk profile, please feel free to reach out to me at (619) 937-0174 or jhoolihan@ranchomesa.com.