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What are your fleet accidents really costing you?

Accidents are costly. In money, time and in some cases, lives. Driver distraction, fatigue and limited training are all massive contributors to accidents.

How much could you save by investing in a fleet driver training solution?

Accidents are costly. In money, time and in some cases, lives. Driver distraction, fatigue and limited training are all massive contributors to accidents.

In New Zealand, during 2019 alone, driver distraction was a contributing factor in 10 fatal crashes, 133 serious injury crashes and 918 minor injury crashes.

Lack of driver training is also a huge factor. People need to have the necessary skills to operate fleet vehicles, and it's the higher-level driving skills such as visual search, hazard perception and risk management that keep drivers safe on the road. Hazard perception directly relates to crash-risk, and risk management teaches better decision-making when things get difficult.

With safer drivers come fewer accidents. That means less repair bills, lower insurance premiums, and less productive time lost. As safe driving is also fuel-efficient driving, your business will also benefit from reduced fuel costs and sustainable driving outcomes.

How much are vehicle-related incidents really costing you?

When it comes to the ROI for driver training, it’s important to consider all the elements that make up the total cost of your fleet, in order to accurately calculate the cost of fleet accidents.

It's important to understand that it's not just the direct cost of the repair; there are indirect costs that must be taken into account as well:

·        Incident costs — these are the direct costs, e.g., repairing a bumper, panel beating, replacement parts, new tyres, etc. It could even include the costs of writing off the vehicle (if the incident was serious enough)

·        Short term costs — these include a replacement vehicle, loss of productivity, HR involvement, administrative tasks, the cost of a rental car, and staff absence

·        Long term costs — you could be facing increased insurance premiums and excess, unfair vehicle wear and tear, and reduced vehicle resale value

Once you've crunched the numbers, you will have calculated the total cost of the incident — not just the incident itself. If you work out that the total cost of a bumper repair is $4000, consider how that money could have been better invested in driver training that will reduce the likelihood of future bumper repairs.

There's also the cost to your brand. You could be facing significant reputational damage if your brand is associated with vehicle accidents. Think about the times you may have seen a vehicle with a business logo on it involved in an incident; that logo will stick in your mind, and not for the right reasons. If your organisation becomes associated with bad driving, it can lead to major indirect costs.

How fleet risk management and driver safety training pays off

In 2012, the cost to repair the bumper of a Mazda CX5 was approximately $1,900. That cost has risen to $3,449 – why? Because there's a lot more technology in vehicles these days, and these high-tech extras are making car repairs more complex and therefore, more expensive.

For $3,449, you could train 70 people on our Safety Plan. That means 70 people on the roads with improved driving skills, better behaviours, and increased awareness. That leads to a reduction in incidents and accidents — all for the cost of one bumper repair. A repair that is less likely to occur in the future, giving you an extra $3,449 in the bank.

The other way to think of it is in terms of the revenue you need to generate to cover the cost of a repair. For example, if your business sells chocolate, consider how many extra bars you would have to sell in order to make up the cost of a vehicle repair. $3,449 equals a ridiculous amount of chocolate!

As a fleet manager, you’ll probably approach the idea of driver training in terms of what it will cost. Although it's often more effective to look at it in terms of the health and safety benefits, we can help decide if you can achieve a positive ROI from investing in driver training. If you're building a business case, these numbers can help get the cost of driver training approved.

Vehicle damage doesn't have to be a 'sunk cost' — it's not inevitable. You don't need to accept that you'll be facing X number of repairs every year. There is a way to reduce those costs, and it's by ensuring that your drivers are properly trained.

Get in touch, and we’ll help you work out how much you could save by investing in driver training. And take Fleetcoach for a free test drive to see it in action.

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