A fleet accident cost can vary due to multiple reasons. There are obvious costs, like repairs and insurance, that are known values to factor into a budget. But there are also some other costs associated with a fleet accident that are often not thought about.
Calculating Fleet Accident Costs
While it’s difficult to calculate the actual cost, there are estimates on what a fleet accident could cost a business and how much revenue they will need to generate to offset that cost.
According to numbers from the Occupational Safety & Health Administration (OSHA) and looking at it as a best-case scenario, if there are approximately $16,500 in damages and $57,500 in injury-related costs, that’ll equate to just over $1.1M in revenue to offset that cost. $1.1M is a lot of money. That’s why fleet safety is critical, not only to a business but to a fleet driver’s life.
Hidden Costs
The ultimate cost, of course, in an accident is somebody paying with their life. However, beyond that and repairs, there are a lot of hidden fees that fleet businesses are not aware of when it comes to accidents.
- Employee Morale- businesses spend more than $300 Billion annually covering costs of work-related stress.
- Reduced Vehicle Value- you can expect to lose approximately $200-500 on your vehicle, depending on how bad the accident was.
- Legal Fees- while insurance may cover this part, try planning into your budget for upfront legal fees.
- Recruitment Costs- If you lose a driver, on average, businesses need to pay out $8200 to replace a driver.
- Lost Employee Time- Regardless of how bad the accident was, your employee will need time off to recover, which results in a loss of money.
These hidden costs aren’t always the case for every fleet driver and business. It really depends on the scale of the accident and its impact on both the vehicle and the driver. Regardless, you can expect a significant expense when it comes to an accident. But, you can avoid that with better insurance options.
How Insurance Can Help
Legally, you are required to have insurance. And regardless of who is at fault, making an insurance claim usually leads to an increase in insurance premiums. However, some insurance options can put your company in a better position when claiming an accident.
For example, Rideshur only offers personalized premiums set by accurate data gathered on the road. Thanks to technology, insurance options that look into what happened on the road give your fleet a better chance of getting money back in claims.
Don’t Get Blind-Sided
Although there is not one set and solid answer for the cost of a fleet accident, you can expect it to be somewhat expensive. That’s why it’s crucial to have your basis covered, whether that’s getting on top of hidden costs or updating your insurance. Don’t get blind-sided both by an accident and the price. Set yourself up with a plan and keep your vehicles and drivers safe.
