Rewards
Reduced Risk | Reduced costs | Public image | Company culture

Reduced costs

It has been proven that with the implementation of risk management strategies and the successful management of occupational road risk, costs can be reduced significantly.

It has been calculated that 65% of company vehicles will be involved in an insurance claim in the next 12 months, each claim incurring costs which can range from a few hundred pounds, to many thousands of pounds. In extreme cases, in addition to the tragedy involved with loss of life, road death or serious injury could cost companies hundreds of thousands of pounds.

By reducing accidents you will automatically be reducing costs.

It is important that 3 areas of the company which use vehicles for business journeys work effectively together:

Work together and combined with good practice there will be:-

• Fuel consumption improvements – when drivers are utilising their vehicles safely, adhering to speed limits and using the vehicles correctly then it will lead to average mpg’s increasing.

• Reduction of wear and tear on tyres, brakes etc – with safe driving comes the benefits of having reduced spend on limited life items.

• Improved residual values – if drivers are trained on hazard awareness and safety less minor incidents will occur leading to improved quality vehicles at point of disposal.

• Reduction in accident damage costs – the actual cost of an incident can, in some cases be up to 10 times the recorded bent metal cost as it takes into account the hidden costs of

1. not attending a meeting
2. not delivering goods
3. employee sick pay
4. hire car costs
5. civil claims
6. time spent on investigation and claim handling
7. reduced staff morale
8. increased insurance premiums
9. poor company image (immeasurable to the business)