Most of us simply think of repairs when we consider the true cost of vehicle accidents, but it’s much more complicated than that! Depending on the severity of the accident, the cost will include a lot more than just the price of parts and labour.
When accidents occur (and they do) fleet managers are often bombarded with a variety of unexpected costs and time-consuming admin. To avoid being caught off-guard, companies need to have a detailed process that needs to be followed in the event of an accident. Not only will this speed up the process, but it also helps anticipate any unexpected costs.
- Vehicle downtime – the amount of time the vehicle spends out of action depends on the extent of the damage. Surprisingly few companies plan for severe damage and they don’t factor in the cost of extended downtime.
- Staff downtime – every day that an employee is off work due to accident injury, this costs the company money. This needs to be factored into the overall cost of the accident.
- Rentals – in many cases it may be necessary to rent a vehicle until the damaged vehicle is repaired. If the accident damage is severe and you need to rent a vehicle for a number of weeks, the cost can quickly become astronomical. For this reason fleet managers need to budget for worst case scenarios and companies should consider comprehensive insurance that includes rental costs. This becomes an even bigger expense when specialised vehicles are involved, such as construction vehicles.
- Damage to the brand – this is a real concern for many companies. Even a minor accident can damage a brand’s image, especially if the company is seen to be at fault. This might not be a line item that you can plan or budget for, but frequent accidents can do irreparable damage to a brand.
- Admin and loss of productivity – most accidents result in scary amounts of admin ranging from police reports to insurance claims and possible disciplinary hearings. This may sound like a ‘frilly’ point, but any company that suffers more than one accident in a short space of time will notice a sharp decline in productivity as employees try to deal with all the admin.
- In the worst-case scenario, the cost of an accident will include loss of life. It goes without saying that such accidents have a lasting effect on all those involved and the company itself. Depending on the circumstances and company policy, such cases will include family restitution costs or additional insurance claims.
It's important that fleet managers take all these additional costs into consideration. When it comes to compliling an accident or fleet recon it’s crucial to include all related costs as it’s the only way to get an accurate picture of your fleet expenses. When you look at all the potential cost surrounding an accident, it becomes much easier to justify expenses relating to preventative measures such as vehicle maintenance and driver training.
