Is it common in industry to require fleet drivers to pay a portion, or all, of the insurance excess for at-fault claims?
- What is the efficacy of at-fault claim policies in reducing costs and subsequent incidents?
- What are the considerations for deciding to implement or not implement such a policy?
- Are there alternative approaches?
The Scope of the Problem
Fleet drivers have a substantially higher risk of being involved in a motor vehicle incident than non-fleet drivers. Fleet safety management is a key factor in encouraging safe driving behaviours in employees and subsequently reducing the frequency of these incidents and incident-related financial losses.
Requiring drivers to pay a portion, or all, of the insurance excess for at-fault incidents is becoming an increasingly prevalent strategy implemented within fleets. These policies are ‘consequence approach’ strategies that aim to disincentivise dangerous driving behaviours which result in preventable vehicle incidents. These policies, however, are not the right fit for every organisation and require careful consideration before implementation.
This Q&A draws on the expertise of leaders in the fleet management industry to explore and evaluate excess charge policies for at-fault incidents.