What role do vehicle maintenance programs play in obtaining vehicle insurance?
Insurance carriers evaluate the insurability of commercial auto fleets from many different angles. Along with driver selection, qualifications, orientation, training, accident reporting, recordkeeping, etc., preventive maintenance schedules are reviewed to aid in evaluating the potential of a failure occurring while a vehicle is being operated that could lead to injury and/or property damage. Why are PM programs beneficial to reducing costs and sustaining good business? Formalized PM programs differentiate companies that use a proactive approach for commercial auto exposures as opposed to a reactive approach of controlling auto claims. Not surprisingly, companies with formalized PM programs tend to experience fewer and less severe commercial auto claims. Though PM programs are only one of many elements that determine loss experience, companies with formal PM programs and subsequent limited commercial auto claims experience are looked upon favorably and enjoy far more competitive pricin
