Company drivers could be costing you more than your reputation

 

Drive Tech have recently published a useful report on how driver behaviours impacts running costs.  

Download full report here  

If you don’t have time to read it all, I have done that for you, and listed the main points here.  It’s great to see a proper study on the subject – often improving your employees driving style is based on factors other than financial – how your company is perceived on branded vehicles for example.

The report studies over two thousand AA fleet vehicles over a period of two years. The results show a number of direct links between driver behaviour and operating costs. It shows that nearly half of the costs of running a vehicle are impacted by how it is driven.  The main things impacted are: insurance; fuel; and service, maintenance & repair.

Telematics (tracking) has meant that driving styles can now be recorded and analysed. (Also see my post on the benefits of tracking).  The main points are:  

  • The more maximum throttle events (IE heavy accelerating) that occurs, the more insurance claims (over twice as many)
  • Harsh braking or cornering resulted in a 73% increase in tyre costs
  • The more heavy acceleration events, the higher the fuel bill – up to 166%

WHAT CAN BE DONE ABOUT IT?

The simple answer is tracking and training. I have never heard of a fleet manager who hasn’t saved money in the long term by educating their drivers. Drive Tech is one of the outfits offering driving training (NB: I am in no way affiliated with them). 

Here is how Drive Tech helped the AA: By focusing on the ‘worst performing’ drivers and transforming them into ‘average’ drivers, the company has calculated it can save £360 per annum per vehicle over the next three years. Interestingly, the anticipated biggest savings are in crash costs, closely followed by fuel savings

Happy Money-Saving Motoring!

Vehicle Tracking – Inspiring Employees to Help Cut Costs

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I recently met with a company that fits tracking devices to business vehicles and was intrigued to learn how beneficial it can be for both the tracker and the trackee.  I thought I would share some insights below.

LEGALITY

Some take a dim view of their company vehicle being ‘tracked’ by their employer and it is important to be aware of the rights of the employees and your obligations in terms of data protection, privacy and vehicle tracking laws (See https://www.gov.uk/monitoring-work-workers-rights).  In short, it’s completely legal for a business to track its vehicles, but this must be for business management purposes only. 

BENEFITS FOR EMPLOYEES

The benefits to a vehicle tracking programme can be great.  Some companies choose to send their drivers on advanced driving courses and/or offer additional driving education courses and qualifications.  This can help lower an employee’s personal insurance. A better informed workforce can be inspired to be competitive with their driving – in a positive way.  A good tracking programme monitors fuel efficiency and smooth driving that avoids excessive acceleration, as well as speed-limit compliance. Employees can benefit from incentives and cash bonuses for better driving.   It is also better for an employee’s health and safety – if they are stuck with their vehicle due to ill health, weather or an accident, a fleet manager can pin-point exactly where they are.

COST SAVING FOR EMPLOYERS

GPS_Car_TrackerIt is thought that businesses using vehicle tracking can achieve a saving of up to 25% in fuel as a result of improved driver behaviour.  Fuel can also be saved through better route management and insurance companies often offer discounts for tracked vehicles. Some of the savings made can be used to reward the best performing company drivers in monthly bonuses – so everyone’s a winner.

OTHER BENEFITS

  • Tracking signage on a vehicle can deter thieves
  • Better driving will reduce your emissions – so it’s better for the environment too
  • For deliveries, you can provide clients with more accurate ETAs
  • You can locate exactly where your vehicle is at any time – meaning fewer calls to drivers
  • Vehicles can be recovered quickly if necessary
  • There is a reduction in administration and paperwork – digital records mean no more log books.

We can facilitate vehicle tracking via our working partners – please drop me a line if you are interested in this, or any other aspect of money-saving motoring.

Caroline