Grey Fleet Policy Advice

20 April


Not all businesses need a full, company-owned fleet.

It may be preferable (and cheaper) to include your drivers in a ‘grey fleet’ system. Essentially, this means they use their own cars, vans or motorcycles for business transport. All they have to do is calculate professional mileage costs, and claim them back from your expense account.

While it sounds like a welcome price saver, negating the burden of maintaining a fleet yourself, there are added complications that can stem from a change in responsibilities. So let’s examine grey fleet policy advice, making sense of what to look out for.

Stay on top of MOTs and servicing

It is the employee’s duty to ensure their vehicle is road-worthy. But we can’t just assume that pressure is being dealt with. Regular MOTs should be pre-booked and reported, so you know exactly what transport is fit for the job. The owner should also replace components that they need, such as brake pads, tyres and in-vehicle light bulbs, with sufficient evidence of purchase.

Allstar’s ServicePoint abilities let drivers arrange an MOT or general servicing inspection at their leisure, benefitting from company discounts. As a result, you’ll never be in the dark about which transport has been seen to and others that may require a touch-up before they’re back in action.

Understand what insurance you need

There are three main sorts of business cover: Class 1, 2 and 3. The first is the most likely candidate for regular, professional transport i.e. not commercial or door-to-door sales delivery. It is different to Class 3, for instance, which can cover the risk of sensitive samples or equipment on the road, in addition to other things.

Be careful though, because not every insurance provider knows what’s applicable for your drivers. Our grey fleet policy advice suggests that you drill into the specifics with an insurance provider. They have to be aware of what each driver is doing, from a risk assessment standpoint, when finalising the agreement.

Educate and grade drivers on their behaviour

Most people think their driving habits are sensible. Yet this may not be the case, particularly when navigating dangerous conditions, obstacles and long distances. Although the employee owns the vehicle, it’s vital to manage how well they use it over time.

Do your best to teach drivers about fire hazards, dashboard warnings, road sign vocabulary, and efforts to reduce fatigue. A brief practical test once a year can keep their skills up to the mark. Theoretical exams – including what to do in the event of an emergency – will make the grey fleet more robust. Again, this should relate back to the vehicle in their care, factoring its unique operative demands.

By giving employees an Allstar fuel card too, you can provide a fuel payment system while they’re travelling. It can be linked to an expense fund, building a record of viable running costs that’ll reduce your overall tax bill. And, really, it’s another way to give your grey fleet policy advice a kick in a good direction. No-one has to separate business mileage from their typical, personal running fees.

Helping drivers treat their own resources well is helpful for both parties. Contact us to learn more.

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