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The role of driver abstracts in fleet safety and insurance

Municipalities that actively manage driver risks through tools like driver abstracts, fleet safety programs, loss control efforts, and claims history can better manage safety and costs.

06/06/2025 · 5 minute read

Municipalities across Canada maintain fleets — ranging from snowplows in Manitoba and transit buses in British Columbia to utility trucks in Newfoundland — all of which are insured under commercial auto policies. 

Effective fleet management is critical, as driving behavior not only impacts safety on the roads but also significantly influences the cost of insurance. Insurers evaluate risk and set premiums based on driving history, meaning that municipalities with a higher incidence of accidents or traffic violations among their drivers could face higher premiums. 

The following guidance highlights the importance of driver records as well as key considerations to maintain fleet safety and help secure more cost-effective insurance coverage. It is not an exhaustive list and should be used in conjunction with internal policies and procedures, as well as in compliance with local laws and regulations.

What is a driver abstract?

A driver record, also known as a driver abstract, is a government-issued document with information about a driver and their driver’s licence.

You may need a driver abstract:

  • to apply for a job
  • as an employer considering candidates
  • for vehicle insurance, for example when you apply
  • to apply for a driver’s licence in another province, territory, or country
  • to confirm a driver's address in court

The primary risk considerations for municipal fleets

In assessing the insurance landscape for municipal driver fleets, several key risk considerations emerge that can significantly influence both premiums and liability exposure. Below are a few of the most prominent risks that can impact their insurance premiums and overall risk posture.

Insurers evaluate the driving records of municipal employees to gauge the fleet’s risk. A driver abstract lists convictions, demerit points, and at-fault collisions. These incidents are typically retained on records for three years, though this varies by province.

If drivers rack up violations like speeding, improper lane changes, or running stop signs, insurers may classify the fleet as high-risk, which can lead to increased premiums. A pattern of infractions could suggest inadequate training or oversight, further driving up costs.

Frequent accidents involving municipal drivers — whether multi-vehicle crashes in urban Québec or single-vehicle incidents on rural Saskatchewan roads — can push premiums higher. 

A municipality with a claims-heavy history, such as a driver negligently rear-ending another vehicle, might see rates jump at renewal, depending on incident frequency and severity.

Many insurers use experience rating, analyzing loss history over three to five years. A municipality with drivers boasting clean abstracts — few or no demerit points and no serious violations like stunt driving or impaired driving — could earn lower rates or discounts. 

Conversely, a fleet with drivers showing multiple convictions or suspensions faces surcharges, as their abstracts signal heightened risk. This applies whether it’s a coastal town in Prince Edward Island or a northern community in the Yukon.

Municipal drivers operate in public settings nationwide, so accidents often carry liability risks, from third-party claims to lawsuits. Abstracts highlighting major infractions —reckless driving, failing to stop for emergency vehicles, or distracted driving — increase this exposure. 

Insurers adjust premiums accordingly, especially if past incidents have led to settlements or legal losses. A transit driver in Toronto with a history of running red lights, for example, could elevate a municipality’s liability profile as much as a plow operator in New Brunswick sliding into a ditch.

Proactive risk management with driver abstracts

Municipalities can strategically use driver abstracts to mitigate insurance rate increases. Here are key steps to consider:

  • Obtain driver abstracts: Acquire driver abstracts from provincial transportation ministries (such as ServiceOntario, ICBC in BC, or SGI in Saskatchewan) for a nominal fee, typically under $20. These records provide essential information including:
    • License status
    • Restrictions (For example, mandatory glasses)
    • Endorsements (For example, air brake qualifications)
  • Strengthen hiring processes: Ensure that driver abstracts are reviewed during the hiring process, ideally no older than 30 days, to confirm the suitability of candidates.
  • Conduct routine checks: Implement regular checks of driver abstracts (quarterly or annually) in accordance with Canada’s National Safety Code, to maintain a safe driving workforce.
  • Identify training gaps: Use the information from driver abstracts to identify any poor records that may indicate training gaps. Address these through tailored training programs and ongoing education to reduce driver risk.
  • Monitor impact on insurance: Understand that the impact of driving history will be reflected at policy renewal. Severe violations, such as driving under the influence, failing to remain at a collision scene, or excessive demerit points can elevate a municipality into a higher risk bracket.
  • Consider local driving conditions: Recognize that Canada’s unique driving conditions, including winter ice in Alberta or coastal fog in Nova Scotia, can amplify risks. Insurers focus on preventable errors, making it crucial to manage driver behavior effectively.

By understanding and actively managing the driving history of their employees, municipalities can not only enhance road safety but also significantly influence their insurance premiums. 

As municipalities navigate the complexities of fleet management, prioritizing driver abstracts will be essential in safeguarding both their drivers and the communities they serve, ultimately leading to more sustainable and cost-effective operations.

To learn more, speak with a Marsh representative.

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