What are grey fleet drivers?
Grey fleet drivers are employees who drive vehicles on company business which are not owned, leased or hired by the company. These can include vehicles that are covered by a cash allowance or opt out scheme or employee owned vehicles where they simply claim a mileage payment.
Grey fleet driving is becoming an increasing concern for many businesses, though many more do not know the implications of not having the proper provisions in place. If a grey fleet driver is out on business, your company could be liable if they were to have an accident. Health & Safety at Work legislation places a Duty of Care on organisations to ensure that their drivers, and vehicles driven on company business, are legal, safe and roadworthy.
Since June 2014, Total Motion have surveyed over 1500 businesses with between 10-5000 employees to gauge how the important issue of grey fleet driving is being managed.
Our research since 2006 has led us to believe that within the next five years, the number of grey fleet vehicles will be equal to the number of company vehicles. While a significant part of this can be attributed to improved personal contract rates, dealer finance driven by manufacturers and the growth in salary sacrifice, the greater proportion of grey fleet vehicles are over three years old.
We uncovered some startling statistics, which, if we assume are representative of the UK as a whole, pose significant risks to UK businesses. Some of the key figures include:
- Over 25% of businesses do not have a grey fleet policy
- Over 30% do not check insurance is valid
- Over 60% do not check service and maintenance histories
- Over 44% do not check the validity of an MOT
- Only 12% know the actual mileage travelled in grey fleet vehicles
- More than 50% of those companies surveyed do not pay the maximum HMRC rates
The companies surveyed prefer to allow employees to use their own vehicles rather than utilising short term hire due to the cost and poor service. Many quoted the condition of rental vehicles as being a concern with the rental providers failing to carry out proper checks.
What this means for your business
Total Motion strongly believe that more needs to be done to protect employees and other road users. We also feel that there is a general lack of understanding of grey fleet driving amongst company owners and directors, who would act if they knew the real risks. Any driving done on company business in their own vehicle comes under the umbrella of grey fleet driving, and if your employee does not have the appropriate insurance
cover and has an accident, you may be liable. Worst case scenario, if they cause a death on the road, your company could be charged with corporate manslaughter.
Implementing a simple set of policies and procedures and regular compliance checks would make a real difference. Often vehicle rental providers have sold their solution but then fail to deliver on basic roadworthiness. Every business should have a grey fleet policy.
How to protect your business with Total Motion
Total Motion take responsibility for the development and updating of the fleet policy for over 200 clients, presenting recommendations to the management team and dealing with implementation and monitoring. We deliver effective grey fleet management that reduces the overall risk to our clients and yields significant financial and environmental benefits.
Supported by a live reporting system, driver-supplied information is held in our Fleet Connect system, providing you with evidence that you have met with your legal responsibilities for drivers to comply and ensure their vehicle is legal and roadworthy.
To guarantee duty of care compliance, Total Motion’s industry-qualified field engineers can undertake appraisals on all vehicles driven for business purposes, including company-owned, cash for car or private vehicles. Proper grey fleet management provides your business with protection and peace of mind.
Contact us today to find out about how our grey fleet management services can protect your business on 0116 251 1122 or email@example.com.