Hint: Our pictures show it’s higher than you think – find fraud, stop fraud.
Approximately 20% of all registered personal autos are pickup trucks. So not including the old Econoline vans, new Sprinters, and other types of at-risk vehicles, you know on average that at least 20% of your book at risk for commercial use. Some may argue that it is really the larger pickups that are at risk; however, in testing carriers’ books we have found that smaller pickups show just as much commercial use as the larger trucks and vans.
Our recent tests with several carriers have shown a 4% commercial use rate when reviewing photos of at-risk vehicles. That is twice what the industry thinks the exposure is:
- 2% showed signage,
- 1% showed a commercial plate,
- 1% showed tools of the trade (ladder racks, tool boxes, etc.).
The most abused carrier tested showed a 20% commercial use rate of at-risk vehicles. What would your books show?
How to Discover and Prove Commercial Use Fraud
The saying “pictures are worth a thousand words” could have been written to describe commercial use, with a slight modification: pictures can be worth thousands of dollars. Pictures are among the best evidence available to help identify and prove commercial use. Imagine being able to review at-risk vehicles at Point of Sale or Renewal by seeing recent images of the vehicle. Images can reveal signage, commercial license plates, tools of the trade and other indicators of commercial use.
So how do we find commercial use fraud? The proof can be in the pictures. DRN provides vehicle location data that includes license plate images, along with the time, date and location of vehicle sightings. These images can reveal telltale signs of commercial use, including signage, commercial license plates, toolboxes, ladder racks and more. This information gives carriers additional insight they can use to identify potential commercial use, strengthen underwriting decisions and support claims investigations.
What is the ROI?
Based on a 4% rate of commercial use of at-risk vehicles, carriers saw over a 20 times return on investment. In my opinion, you can’t get much better than that . . . unless it turns out you have more than 4% commercial use.