Many businesses rely on a fleet of commercial vehicles to fulfill their daily tasks. From gourmet catering services that need to deliver pastries to a special event to landscapers lugging around tools, a commercial fleet can play a vital role in your business's success. Fleet vehicle management and maintenance may allow your means of transport to run optimally for years to come.
Importance of effective fleet management
As a savvy business owner, you may have already invested in commercial auto insurance for your work vehicles. Nonetheless, putting time and effort into your business fleet management is essential. Before diving into ‘what is fleet management’, let’s define a fleet vehicle. A fleet vehicle is any motorized vehicle that is used by your business to transport people and products or conduct daily activities. Fleet vehicles can range from scooters to semi-trucks, however not all of these will be considered ‘commercial.’ According to the US Department of Transportation, commercial fleet vehicles must be motor vehicles used on a highway in interstate commerce to transport a specific number of passengers or used in transporting hazardous materials per the Hazardous Materials Transportation Act.
What is fleet management?
Fleet management is a general term used to refer to the oversight, organization, and efficiency of your fleet of vehicles.
This type of management can include:
- Complying with all local, state, and federal laws
- Hiring a commercial manager to oversee your fleet
- Scheduling and carrying out maintenance for your fleet
- Managing the fuel consumption of your fleet
Vehicle maintenance management
Fleet vehicle maintenance is an essential step in keeping your commercial vehicles running smoothly. Usually, commercial fleet maintenance refers to a set of services that proactively take care of the mechanical needs of your vehicles. This can include measures such as oil changes, brake repairs, and engine maintenance. The services that fleets require can differ depending on their model, age, type, and operating conditions.
Your maintenance management program can be broken down into the following steps:
Regular maintenance schedules
It is recommended that you adhere to all manufacturer-recommended service intervals. Arrange a schedule with your drivers and ensure they follow through with implementation.
Preventive maintenance can be a factor in running an effective and efficient fleet. Implementing a schedule of the following routine checks and inspections may save you time and money in the long run:
- Oil changes and fluid checks
- Engine inspections
- Brake testing and/or replacement
- Tire rotation and balance
- Spark plug replacement
The final part of maintenance includes keeping and maintaining detailed records. These records can be useful in determining different maintenance plans for each fleet vehicle and coverage purposes.
Safety tips for drivers
As a business owner, your driver’s safety should be a top priority. By utilizing a regular maintenance schedule, you can usually ensure your vehicles are both functional and safe. In addition, investing in a safe work atmosphere is equally important.
Help create a culture of safety and education through the following actions:
- Driver training programs - a well-trained driver is a safe driver! Establishing regular driver training, and certifications gives your drivers opportunities to learn skills that can help prevent future accidents. Invest in a fleet safety certification course which can include instruction on defensive driving, emergency response, and vehicle operation. Also, equip your drivers with an emergency kit to prepare them for a possible blowout or mechanical breakdown.
- Implementing safety policies - develop and enforce a comprehensive fleet safety policy. Hosting regular safety meetings and updates, including taking time to review standard operating procedures and the car tool kit essentials, can instill confidence in your drivers.
- Monitoring driver behavior - use telematics, backup cameras, and GPS tracking to monitor driving habits. Calling out unsafe behaviors such as speeding, harsh braking, and distracted driving may help prevent potential accidents and encourage safety precautions.
Tips for better fuel economy
If driving is a pillar of your business, it can pay to be conscious of fuel economy. Potentially save cash by imploring your drivers to spend less on fuel.
Try experimenting with these top tips for better fuel economy:
- Slow down – accelerating and braking gradually can lessen fuel consumption over time.
- Check your tires - a properly inflated tire is better for fuel economy.
- Keep it light - a clean car devoid of excess items weighs less and will have better fuel efficiency.
- Regular oil and engine checks - fresher oil helps your vehicle run more smoothly.
- Use your A/C when you’re on the highway - but roll down a window and turn off the AC in traffic or on a surface street.
Commercial fleet insurance
State and federal laws require that all fleet vehicles carry commercial insurance with liability coverage. Take care to check your specific fleet requirements before choosing a policy to avoid penalties. Generally, most policies will require a minimum liability coverage for bodily injury and property damage. You can speak to your insurance provider about additional coverage options such as roadside assistance, collision coverage, and uninsured driver coverage.
Cost of commercial fleet insurance
Usually, commercial fleet insurance is implemented as a single policy that applies to all vehicles in your fleet. Insurance companies typically charge a specific amount per car, but this is still generally more cost-effective than purchasing individual policies for each vehicle. Actual insurance costs will vary depending on:
- The number, type, and size of vehicles in your fleet.
- The driving records and experience of your drivers.
- The location and general usage of your vehicles.
- The level and type of coverage you desire.
- On average, fleet owners can expect to pay anywhere from $1,000 - $3,000 per vehicle per year.
Risk management strategies
Executing risk management practices such as vehicle inspections, maintenance, safety courses, telematics, and backup cameras can sometimes prevent work accidents and reduce potential insurance costs.
Claims process
A commercial vehicle accident can be a scary situation. Furthermore, filing a claim doesn’t need to be a headache. The claims process for a commercial fleet vehicle is not that different from a personal auto claim. As always, it is important that throughout the claims process, you report things promptly and document everything. This means taking photo and video evidence of all damages. Damage assessment will begin as soon as an accident is reported. After all pertinent information is submitted, a claim file will be created. The insurance settlement will be decided after all damage has been recorded and reported to the insurance company. Depending on your policy this may need to be done via phone or email.
Many business owners see their commercial fleets and drivers as the lifeblood of their organization. Commercial fleet management and maintenance is a crucial step toward achieving optimal daily operations and safety while behind the wheel. Taking care of both your drivers and vehicles may help achieve lower operating costs and legal compliance.
Ready to prioritize the safety and efficacy of your commercial fleet?
Call 1-855-478-3705 and speak with an Infinity Insurance Agency agent today to inquire about essential coverage for your most important assets.