YMCA Management Webinar Series: Driving Better Results – Automobile Risk and Realities

Commercial automobile insurance has been the insurance industry’s loss leader since 2015 and has remained in that position every year since. For the prior 50 years, workers’ compensation held that distinction.

The current environment is often described as a perfect storm of both frequency and severity. For 2024–2025, the automobile loss ratio reached approximately 112 percent, meaning carriers are paying out significantly more in claims than they collect in premium.

Five major factors continue to drive this trend:

• Social inflation and nuclear verdicts, increasing settlement values
• Rising repair costs, driven by vehicle technology and labor shortages
• Distracted and younger drivers, with distracted-driving fatalities now exceeding alcohol-related fatalities
• Lagging rate adequacy, as pricing struggles to keep pace with loss trends
• More vehicles on the road, increasing claim frequency year over year since 2016

Unlike abuse or aquatics exposures, automobile risk combines high claim frequency with severe loss potential, making it one of the most difficult lines to manage.

Automobile risk is often referred to as the third “A” of YMCA insurance, alongside abuse and aquatics.

Commercial automobile has produced some of the most severe YMCA claims, including losses involving staff, volunteers and third parties rather than members. Despite this exposure, transportation remains central to mission delivery in many communities, supporting childcare, camps, senior programs and community outreach.

Automobile exposure comes from multiple sources:

• Transporting minors and vulnerable populations
• Staff and volunteer drivers
• Association-owned vehicles
• Personal vehicles used for YMCA business

High mileage, repeated routes and concentrated transportation activities create more opportunities for incidents, increasing both financial and reputational risk.

Underwriters consistently evaluate several YMCA-specific transportation risks:

• Transporting minors and seniors
• Use of staff and volunteer drivers with varying experience levels
• Older vehicle fleets or deferred maintenance
• Long-distance travel or driving in adverse conditions
• Use of personal vehicles for YMCA business

These factors influence eligibility, pricing, coverage terms and the availability of excess limits. Transparency and documented controls play a significant role in underwriting outcomes.

Understanding automobile coverage is critical to managing risk effectively. Key components typically include:

• Commercial Automobile Liability, covering bodily injury and property damage.
• Hired and Non-Owned Auto (HNOA), addressing rental and personal vehicle use.
• Physical Damage Coverage, including comprehensive and collision.
• Uninsured and Underinsured Motorist Coverage.
• Medical Payments or Personal Injury Protection, where applicable.
• Umbrella or Excess Liability, providing additional limits above primary coverage.

Associations should understand how these components interact and where exclusions or sublimits may apply.

Automobile claims often escalate quickly. Common themes from severe losses include delayed reporting, incomplete documentation, distracted driving and unclear driver authorization.

Claims involving third parties can generate large settlements, even when the YMCA is only partially involved. Early response, proper documentation and consistent policies significantly influence outcomes.

Driver Selection and Screening
Strong driver selection is foundational:

• Annual Motor Vehicle Record checks
• Minimum age and experience requirements
• Disqualification for major violations or DUI history

Driver Training
Effective programs include:

• Defensive driving courses
• YMCA-specific vehicle safety protocols
• Clear emergency procedures

Telematics
Telematics can provide insight into speed, braking and driving habits. While not a standalone solution, telematics can support coaching, accountability and underwriting discussions when used thoughtfully.

Written transportation policies are no longer optional and are often required by carriers.

Key elements include:

• Zero-tolerance policies for distracted driving
• Clear rules on personal use of YMCA vehicles
• Defined driver authorization requirements

Vehicle safety and maintenance should include:

• Regular scheduled maintenance
• Pre-trip and post-trip inspections
• Centralized recordkeeping
• Removal of high-risk or aging vehicles

What happens immediately after an accident can significantly affect claim outcomes.

Recommended steps include:

• Ensure everyone is safe and seek medical attention.
• Follow directions from law enforcement.
• Take photos of vehicles, surroundings and damage.
• Avoid unnecessary discussions or admissions.
• Complete incident report forms promptly.
• Notify YMCA leadership and the insurer without delay.
• Conduct a post-incident review to identify improvement opportunities.

Preparedness and training reduce confusion and improve consistency during stressful events.