The industry estimates around 2% of your book has commercial use issues, yet our tests show it is likely twice that number, and in some cases much higher, up to 10%.
Actual Images
We have seen up to a 10% rate of commercial use of at-risk vehicles, often it's around 6%. Here’s an example the impact of commercial use with the average 6% rate.
Insurance Carrier had 28,565 personal line vehicles at-risk of commercial use.
Of those vehicles, 6% or 1,714 vehicles showed the signs of commercial use.
Assume an average of $1,000 annual premium leakage per auto and this carrier had total premium leakage of $1.7M.
DRN’s guarantee. DRN Guarantees that any qualified file submitted of “At-Risk” vehicles will have a 4% or higher hit rate for Commercial Use. “At-risk” vehicles include Econolines, Sprinters, Astro Vans, Chevy Express, and Any Large Pickups 350/3500 or higher. Commercial Use includes signage, toolboxes, ladder racks, and lifts. The 4% hit rate is based on the number of qualified vehicles found to have Commercial Use within number of at-risk vehicles. Services for determining Commercial Use are $15 per 100 vehicles submitted. Should the hit rate fall below 4%, the carrier will only be responsible for the services associated with the validation for Commercial Use. Any single insurance carrier must submit a minimum of 10,000 and a maximum of 100,000 at risk vehicles. Result times of validation for Commercial Use will vary depending on file size and availability. The guarantee applies to any vehicles submitted by May 31st, 2017. DRN reserves the right to accept or not accept any file submitted for this promotion.