Motor Vehicle Report Authorization

Re: Motor Vehicle Reports and the Fair Credit Reporting Act

Usually the insurance industry requires our agency to order Motor Vehicle Reports (MVR’s) on clients for whom we provide auto coverage. We must obtain MVR’s on all the licensed drivers of your company. However, to do so, we must comply with the requirements of the Fair Credit Reporting Act of 1970 (FCRA). This act states that all persons on whom the report is ordered must give their written permission before a report can be ordered. The law states that failure to do so can result in severe penalties, such as fines up to $2,500, plus court costs. This applies not only to the entity ordering the report, but also to the employer of the individual.

In the event you do not already meet the guidelines, we have provided suggested wording for a letter that should be signed and dated by employees who either drive a company vehicle or drive their own vehicle on behalf of your company. We recommend that you retain the signed employee acknowledgement in the employees’ personnel file. We will assume your compliance and proceed in ordering MVR’s on your drivers when required.

Suggested Letter – Employee Permission Letter

To: Name of Employee

It is understood that my job position requires (or may require) me to drive either a company owned vehicle or my own vehicle on company business. I understand the insurance company writing your automobile insurance requires a copy of my current driving record to assess my insurability. I also understand that I have the right to see a copy of my Motor Vehicle record.

By this letter, I hereby authorize the insurance company and /or its agent to obtain the necessary motor vehicle records and release those records to my (perspective) employer.

Letter should be signed by employee and kept in your employee file