How to Lower Your Fleet Costs
Fleets can cost money to acquire, but once you’re finally able to afford it, you might think you won’t have to spend as much. Even with a small fleet, however, you may be paying more than you originally thought. As a fleet manager, one of your duties is to spend the least amount of money possible. In this article, we’ll teach you how you can ultimately lower the costs of your fleet.
Keep a Close Eye on Your Drivers
If anything can rack up the bill, it’s a reckless driver. Not only does reckless behavior look bad on your company, it can also increase the chance of a vehicle accident occurring. Vehicle repairs can cost thousands of dollars, depending on how severe it is. In fact, if there’s too much damage, it’s cheaper to simply replace it with a new one. What’s more is that bad driving habits exhibited by your drivers can make you susceptible to liability claims. You want to ensure everyone who operates your fleet is being responsible and following not only your rules, but the rules of the road.
You can do this by installing ELDs, GPS devices, anti-lock brakes and dash cams. In this context, dash cams are probably the most important as they provide video evidence of what happens on the road. So, hypothetically, if your driver gets into an accident, you’ll be able to see what occurred and properly determine who was at fault. A recommendation is to look around until you discover the most reliable dash cam you can find.
Purchase Fleet Insurance
New fleet managers often struggle with figuring out how to cover multiple vehicles without having to pay too much on insurance premiums. Luckily, there’s a specific type of insurance plan that’s geared toward this; fleet insurance. Fleet insurance allows you to put as many vehicles as you want on one policy. The same goes for removing vehicles that are no longer a part of your fleet. Low costs aside, fleet insurance guarantees every vehicle on the plan is always maintained and fit to operate on the road. When you are going over the important financial statements for a company, insurance is an example of an unavoidable expense, but that doesn’t mean you can’t shop around for the best rates and plans.
Plan Out Your Routes
It’s funny how many things can impact how much you spend on your fleet. Even taking longer routes can cost you more when it comes to gas, maintenance, and mileage. You should always be finding ways to save on gas and route planning is one of them. As a car is used, the more likely it is to experience a problem later down the road. Wear and tear may take a while to show, but it’s something you can easily prepare for. The only time you should have your fleet maintained is when the appropriate time comes.
Maintain Your Fleet
You don’t maintain a fleet as you would your personal vehicle. Compared to the average annual or semi-annual checkup, you have to get your vehicles looked at every month or two. Your fleet needs to remain in near-perfect condition in order to remain operational. Fortunately, your policy covers most of the cost, so you only have to pay a small deductible.
