Driving Costs Down

How would you like to save €1,000 per vehicle, each year?

Many driving-related costs are strongly influenced by driving style.  While the possibility may seem counter-intuitive, employers who proactively measure how employees drive, can protect their people, the planet and their bottom-line. Conversely, inertia comes with “bad costs” or a high “COI” (Cost Of Ignoring)!

How much can your business potentially save by supporting and improving driving style?

While an exact answer depends on many factors, it is really not that hard to avoid hundreds of euro/pounds, per vehicle, each year.  Here's where you can expect savings:

 
 
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Avoid Crashes

As a rule, collisions are largely avoidable. 

According to the RSA, 85% of crashes are due primarily to driver error rather than external factors such as vehicle health, road conditions and other road users.

While insurance will cover the bent-metal cost of the crash, uninsured losses - such as staff absence, insurance excess, insurance loading, legal fees and many other "hidden costs" - are typically 4X or more.

So, if 25% of your vehicles are involved in an incident per annum (with an average claim of €1,500), then assuming a net margin on turnover of 15%, your business needs to generate an extra €10,000 in sales for every single vehicle in your fleet - not just those in collisions - simply to break-even.

Avoiding just 25% of crashes is likely to save you €350 or more per vehicle, each year.

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Reduce Operating Costs

A safer driver is also a more fuel-efficient driver. 

Research shows that fuel-consumption can vary by +/- 20% between the best and worst driver in any fleet. 

This means that if the pump price per litre is €1.85, then some staff are paying the equivalent of €2.03 per litre!

Eco-driving results in an average 7.5% fuel-saving.  So, an effective 14c per litre reduction would mean an annual saving of €300 for every 2,200 litres.

Also, the national ECOFleet Scheme actually pays you a bonus when you use less fuel.

Similarly, research also shows reductions in Servicing, Maintenance and Repair costs of up to 20% per vehicle - plus reduced depreciation - realises about €250 per vehicle, each year. Sustainable driving also improves your insurance rating on renewal which could be worth €100 per vehicle, per year.

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Other Benefits

Aside from the many costs that can be avoided by improving driving style, other business overheads - such as business mileage administration - can be reduced by 80% while improving compliance.

Also, leaders in road-risk management often point to sometimes unexpected benefits of being proactive, including improved staff retention, reduced customer complaints and even competitive advantage in winning new business!

The bottom-line is that a little investment in proactively managing driving, yields significant savings, avoids the uncountable human cost of crashes and shows clear duty of care compliance.

The corollary is also true - if you ignore the opportunity to save you are accepting a Cost of Ignoring (“COI”) which is significant financially, legally risky and ultimately can be damaging your brand.

 

Disclaimer: This fleet savings estimate is provided in good faith and is designed for comparative purposes only. Accuracy is not guaranteed. This estimate is provided as is and with all faults. DriverFocus makes no warranty or representation as to the accuracy of any information provided and specifically disclaims any other warranty, express, implied or statutory including but not limited to the implied warranties of merchantability and fitness for any particular purposes. DriverFocus shall not be responsible or liable to any person or entity with respect to any loss, errors, results, or inconvenience, or any direct, indirect, special or consequential damage however suffered, following reliance on any information contained herein.