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WHY Manage this risk

WHY Manage this risk

WHY Manage this risk


AA Drivetech answers this question very succinctly at the link below. Put simply they say that organisations that don’t act are not only potentially gambling with the lives of their staff and therefore failing to provide appropriate ‘duty of care’ but they have missed an opportunity to reduce vehicle costs and reputational risk within their business.

They go on to say that “Some businesses have opted out of offering the traditional company car to employees believing that moving to a cash-for-car, personal contract purchase scheme or letting the employee use their own car when driving for work removes their health and safety responsibilities. It doesn’t”.

As well as the legal and moral responsibilities that an employer has, AA Drivetech go on to outline the benefits of managing this risk. One frightening statistic they show is that:-

“On average, 65% of all company vehicles will be involved in a road incidence within the next 12 months and that average vehicle repair costs, following an accident, can range between £750 and £4,500 per claim”.

However they outline the following list of  savings that are attributable to a risk management programme:-

  •     A reduction in insurance premiums of at least 15% depending on previous claims record, fleet size and composition at a time when insurance premiums are escalating at the rate of 20-30% annually
  •     Fuel consumption improvements of at least 7%
  •     Reductions of at least 5% in wear and tear on tyres, brakes and clutches etc
  •     Improved vehicle value of a minimum of 4% if a trained driver drives the car
  •     Fewer accidents
  •     Less need for investigation
  •     Less administration
  •     Less lost time
  •     Less requirement for work rescheduling
  •     Lower training costs
  •     Fewer missed orders/sales opportunities
  •     Improved staff morale
  •     Improved public image
  •     Protection from prosecution