A new analysis by iiX finds that motor vehicle report (MVR) fees have increased an average of almost 50 percent during the past ten years. Nationwide, as of January 1, 2016, the average MVR fee will stand at $9.50, compared with $6.48 in 2005.
A comparison of fees charged between 2005 and 2015 reveals that MVR costs grew at an average annual rate of 3.9 percent, nearly twice as high as the rate of inflation. By comparison, the Consumer Price Index (CPI) rose at an annualized rate of only 2.2 percent over the past decade.
Trends across states
MVR costs vary dramatically by state, and many states have recently increased fees. Between 2005 and 2015, 36 states and the District of Columbia raised MVR fees, while only 14 held steady. The increases have been dramatic at times. Ten states have at least doubled their MVR fees since 2005, while Florida almost quadrupled them and Oregon experienced a six-fold increase. Oklahoma, which charges $27.50, ranked as the costliest state.
Impact on employers
Fee hikes have a significant impact on employers, since MVR reports remain an important tool for screening job applicants—especially in industries such as trucking and transportation.
Compared with other background screening tools, MVR reports are relatively inexpensive and return results quickly. Therefore, they’re often ordered to screen for the best candidates. A review of employee MVR reports is critical when evaluating prospective employees whose jobs require them to spend time behind the wheel. Such reviews may even be mandated by Federal Motor Carrier Safety Administration regulations, requirements of educational entities and state or local healthcare boards, and other government protocols.
In positive news, iiX is working with the Texas Driver Record Monitoring Service (DRMS) to enable employers to monitor the driving records of Texas-licensed employees for adverse activity, such as a driver’s license status change or a new moving violation. We’re also working with other states on similar initiatives to improve access to timely violation data, streamline the MVR review process, and reduce the need to order multiple employee MVR reports for companies doing business in those states.