Managing vehicles and drivers is expensive. The costs of fuel, vehicle repairs, workers’ comp claims, legal costs, and other line items can add up quickly. Investing in a fleet management solution can help you reduce these costs, so you have the flexibility to dedicate budget toward growing your fleet.
Types of Fleet Management Costs
Before explaining how the best fleet management solutions can help create some cushion in your budget, let’s discuss where most of the spend goes in the first place. There are three primary cost categories for the majority of fleets:
1. Insurance Claims Costs
While insurance claims may not amount to the biggest line item on the expense sheet for many smaller fleets, they are often a huge priority for larger fleets. Legal issues, and their associated costs, can quickly add up. Insurance claims costs include:
- Auto Liability: Claims for third-party bodily injury or property damage due to a vehicle accident.
- Vehicle Repairs: Claims for physical damage of a company vehicle that was involved in a collision.
- Workers Compensation: Claims for injury to an employee as a result of the motor vehicle accident.