Step 5: Measure

>>Step 5: Measure
Step 5: Measure2018-09-17T17:58:34+00:00

Understand your risks and costs

How often do your vehicles get damaged? Are there common incidents and why do they happen? Are some drivers of greater concern than others? How much money is it costing your business? If you don’t measure it, you can’t manage it and, importantly, and you can’t improve it!

While the metrics on this downloadable sheet are a good place to start, they most certainly aren’t the full range of costs. The obvious costs are easy to calculate such as your total fleet insurance premium, the amount required to cover the excess payments, as well as any penalties your leasing company might impose when vehicles are returned at the end of term.

However, the insurance industry calculates that the hidden or uninsured costs to the business are normally between x4 and x32 the cost of repairing the vehicle. The reason we refer to them as hidden is because most organisations don’t track them them or, if they do, they don’t get allocated against the collision.