What is the Cost of Fleet Vehicle downtime?
Vehicle downtime can be a huge cost to your company. While it may seem like a minor repair, if you are paying someone to fix a vehicle for a few hours, or it’s parked up unused for days, then you are looking at several thousands of pounds in lost revenue. But how much money are you losing due to vehicle downtime? If you were to calculate the cost of a day at the most, and figure out how many vehicles you use during the day, you might be shocked to see how much money you are losing. This is why so many companies are considering fleet vehicle downtime insurance – to protect their investment.
With most insurance companies, there is a deductible. So, if there happens to be a claim from a damaged or broken part, then you might end up paying the cost of repair or replacement before the insurance kicks in to cover the rest. With fleet vehicle downtime insurance, however, you are only paying the cost of maintenance or repair until the vehicle is actually retired. After that point, the insurance policy kicks in to cover everything the vehicle was estimated to be worth. Any fleet should also be using Fuel Cards to save money. Visit Fuel Card Services for more information.
This is why it is important to compare the cost of fleet vehicle downtime with the cost of regular maintenance. If your company has regular maintenance, and vehicles are only used for a short period of time, then you can probably get away with not buying this type of insurance policy. But if you are using vehicles for long periods of time, or if your business regularly uses very expensive vehicles, then you need this type of insurance policy.