How a CAB Report Affects Insurance Premiums

When it comes to insuring your trucking business, you may not realize the importance of the Central Analysis Bureau. In fact, a Central Analysis Bureau report can have a direct impact on your insurance premiums.

What Is the Central Analysis Bureau?

The Central Analysis Bureau or CAB gathers DOT inspections and violations and then inputs them into a database before averaging them against other companies. The point of the CAB is to provide up-to-date information regarding the following points:

  • A carrier’s finances
  • A carrier’s safety
  • A carrier’s operations

They compile the information into a CAB report. This report is made up of information from various proprietary and government sources. Once gathered, it is analyzed by a computer system.

What Do Cab Reports Tell Insurers?

Your CAB score informs insurers what type of risk profile you have. For instance, the CAB may be triggered if a motor carrier’s history is flagged as having the same VIN as another company.  The CAB may also provide the crash and violation history of vehicles and carriers.

The CAB compiles data points to measure a carrier’s overall risk. The insurance company looks at the score and can decide premium prices based on the risk. While all insurance companies know that claims are likely to happen, regardless, knowing a carrier’s risk can help them decide what to charge or whether to insure a carrier.