Your driving record could cost you a job

A speeding ticket can cost you more than a fine and court costs. You could lose your job.

Employers are looking at more than Facebook and other social media these days when deciding whether to hire someone or keep an existing worker on the payroll. They're listening to insurers, who are scrutinizing driving records and deciding whether to exclude applicants or existing employees from coverage.

Insurance agencies and insurers don't actually tell employers who they can hire, said Lottie Miller, director of errors and omissions compliance and insurance resources at the Millhiser Smith Agency in Cedar Rapids.

“We get a ‘yes' or a ‘no' from an insurer as to whether the applicant can be insured,” she said, but “if an insurance company says someone cannot be insured, an employer likely will reject them for a job.”

She said insurance companies are paying more attention to driving records, because statistics show “the more activity on a person's driving record, the higher likelihood they will be involved in some sort of incident.”

Miller said it doesn't matter whether you are driving a company vehicle or your own when a violation occurs.

“Whether you're in your car or a company vehicle, your driving record is the issue,” she said.

Nancy Williams, an account manager with TrueNorth Cos. in Cedar Rapids, said existing employees also can face warnings and eventual termination if they have too many moving violations within a set period of time.

“If an insurer sees someone who has a number of things on their driving record, they don't want them to be a liability to your company,” Williams said. “If an employee is using their own vehicle for business, their insurance would provide the primary coverage in the event of an accident. If the damage exceeds their policy limits, it can come back on their employer.”

Dave Winegarden, a partner with A.W. Welt Ambrisco Insurance in Iowa City, said employers are concerned about their potential liability because of recent court decisions involving “negligent entrustment.”

For example, “a corporation knew that an employee had three tickets for driving under the influence, but they still furnished him with a pickup truck,” Winegarden said. “The jury says the company knew he was a risk but continued to employ him and furnish a company vehicle. They nail the company for real damages, as well as slamming them with punitive damages for a larger award.”

Jeff Mark, an agent with United Insurance Agencies in Marion, said insurers are tightening restrictions and becoming less flexible.

“Some carriers have a ‘cookie-cutter' approach to insurance,” Mark said. “Either it fits in their mold, or it doesn't.

“We had an employee of a company who was carrying a propane tank for a household grill in the back of a pickup truck. The sticker on the side of the tank had worn off to where it wasn't entirely legible,” Mark said. “The driver was charged with unsafe handling of hazardous materials, and the company's auto insurance policy was canceled.”

Mark recommends motorists check their driving records for accuracy.

“Your driving record has a huge impact on how much you pay for insurance,” he said. “You can go to the records desk at the drivers license station and request a certified copy for $5.50.”