The Link Between Safety Scores and Insurance Rates. What You Should Know?

When it comes to managing a fleet, every decision counts, especially when it affects your bottom line. One of the most important yet often overlooked factors that can significantly influence your operational costs is your fleet’s safety score. Why does it matter? Because insurance companies are watching, and they’re adjusting your premiums accordingly.

What Are Safety Scores?

Safety scores are performance metrics used to evaluate how safely your drivers and vehicles operate. These scores are typically determined using data from telematics devices, driver behavior records, inspection reports, and compliance history. The Federal Motor Carrier Safety Administration (FMCSA), for example, uses CSA (Compliance, Safety, Accountability) scores to assess the safety performance of motor carriers.

Why Insurers Care

Insurance companies view safety scores as direct indicators of risk. A fleet with poor safety scores is more likely to file claims — and therefore is more expensive to insure. On the flip side, fleets that demonstrate strong safety performance often benefit from lower premiums, more favorable terms, and greater trust from insurers.

The Financial Impact

Let’s break it down:

• Poor Safety Scores = Higher risk = Higher insurance premiums
• Excellent Safety Scores = Lower risk = Potential for significant savings

Even a moderate improvement in safety score can result in thousands of dollars saved annually across a fleet.

How to Improve Your Fleet’s Safety Score

Improving your safety scores isn’t just about avoiding penalties — it’s a strategic move to reduce your operational costs and enhance your reputation. Here are a few proven steps:

• Implement a fleet management system to monitor driver behavior in real time
• Use telematics to track and address risky driving habits
• Provide regular safety training and performance feedback to drivers
• Stay compliant with FMCSA regulations and perform routine vehicle maintenance

Here’s how a company can significantly improve its fleet’s safety score:

1. Focus on Preventing New Violations:

– Comprehensive Driver Qualification Files (DQFs): Ensure every DQF is complete and up-to-date, including CDLs, MVRs, medical cards, pre-employment drug tests, and previous employment verification. We use systems like MyDriverFiles or Foley to manage these.

• Continuous Monitoring: Actively track CDL and medical card expiration dates to prevent drivers from operating with expired credentials, which are direct violations.
• Clearinghouse Compliance: Verify all drivers are registered with the FMCSA Drug & Alcohol Clearinghouse and participate in a compliant consortium for random testing. Failure here can lead to significant violations.
• Behavioral Monitoring & Coaching: Utilize telematics data from ELDs like Samsara to identify and correct high-risk behaviors (e.g., speeding, harsh braking, log violations) before they result in a roadside citation. Provide targeted coaching scripts and training resources.
• Pre-Employment Screening Program (PSP) Reviews: Using PSP reports during hiring helps you identify and avoid drivers with a history of violations, preventing future issues.

– Proactive Hours-of-Service (HOS) & ELD Management: HOS violations are a major contributor to poor CSA scores.

• Daily Log Review: Thoroughly review daily logs for violations such as 11/14-hour rule breaches, missing logs, or personal conveyance (PC) misuse.
• Unassigned Drive Time Resolution: Promptly address and resolve any unassigned drive time, as this can often hide HOS violations.
• ELD Training and Policy Guidance: Provide ongoing training on proper ELD usage and maintain clear logbook policies to ensure drivers understand and comply with HOS regulations. Our expertise in Samsara can streamline this.

– Robust Vehicle Compliance & Maintenance Program: Vehicle maintenance issues are common roadside violations.

• Daily Pre/Post-Trip DVIRs: Emphasize and enforce the consistent submission of thorough Driver Vehicle Inspection Reports (DVIRs). Many common roadside violations (brakes, lights, tires) can be caught and addressed through diligent DVIRs before an inspection.
• Preventive Maintenance (PM): Implement a robust preventive maintenance schedule. Tools like Fleetio are invaluable for managing PM intervals, tracking repairs, and resolving fault codes before they lead to roadside violations.
• Prompt Defect Resolution: Develop clear procedures for addressing and correcting Out-of-Service (OOS) orders or failed inspections immediately. Document all repairs and maintenance diligently.

Strict Drug & Alcohol Compliance: Avoid critical violations related to D&A.

• Policy & Training: Ensure a clear drug and alcohol policy is in place and that all supervisors receive “Reasonable Suspicion” training.
• Testing Protocol: Determine when post-accident testing is required and ensure pre-employment testing is completed before a driver is dispatched.
• Pool Management: Maintain accurate testing pools for random drug and alcohol testing and meticulously verify all test documentation. The Clearinghouse is a critical tool for this.

2. Leverage Clean Inspections for Indirect Benefits:

While “clean” inspections (those with no violations) don’t directly remove points, they are a powerful indicator of a strong safety program and contribute to:

• Dilution Effect (Over Time): A higher volume of clean inspections, relative to those with violations, can over time dilute the percentage of violations compared to your peer group. Since CSA scores are percentile-based, consistently good performance can lead to a lower percentile rank.
• Improved Inspection Selection System (ISS) Scores: Carriers with consistently good safety performance, reflected by a low number of violations, receive better ISS scores. This means your vehicles are less likely to be targeted for roadside inspections by law enforcement, reducing future opportunities for even minor violations to be found.

3. Cultivate a Proactive Safety Culture for Ultimate Impact:

Beyond compliance, fostering a deep-rooted safety culture is the ultimate way to positively impact your organization:

• Reduced Risk: Fewer accidents, fewer injuries, and less downtime.
• Lower Insurance Rates: Insurance carriers heavily weigh CSA scores and a demonstrable commitment to safety. A consistently strong safety record will directly translate to more favorable premiums.
• Enhanced Reputation: A safe fleet is a reliable fleet. This improves your standing with clients, helps attract and retain top driving talent, and strengthens your brand.
• Continuous Training and SOP Development:

– Onboarding: Streamline driver onboarding processes using platforms like Samsara or MyDriverFiles. Assign initial training modules covering HOS, – DVIRs, and company safety policies.
– Ongoing Education: Conduct regular safety meetings and provide training on new regulations, common violations, and defensive driving techniques.
– Standard Operating Procedures (SOPs): Develop and regularly update SOPs for hiring, accident response, HOS policy, and vehicle inspection procedures. We can help you generate these key documents.