How businesses can save money on motoring costs.

With rising energy costs adding to existing supply chain frustrations, these remain challenging times for businesses of all sizes, struggling to fulfil orders, generate income and balance the books.

We look at some practical ways that businesses with vehicles on the road can reduce their spending.

Motor insurance.

When calculating the insurance premium, underwriters take various risk factors into account to determine how likely it is that you will need to make a claim. Some things that could help you to save money at your next insurance renewal include:

Excess - Offering to carry a higher excess on your policy could lower the premium as you would be agreeing to contribute towards the cost of any claim

Eligible drivers - Restricting the number and type of drivers allowed to drive your vehicles could lead to savings, ie by excluding any drivers aged under 25 

Risk management - Demonstrating that you are managing risk in the business may lead to the insurer looking favourably on your commitment to risk and road safety, through initiatives such as:

• Vehicle storage & security 
• Cameras .
• Vehicle checks 
• Documentation
• Driver training 
• Incident reporting 

Improved fuel economy.

Experienced fleet managers will know that changes to driver behaviour behind the wheel can lead to significant savings, so there’s a lot that can be done around driver education.

Driving style - Talk to employees about their driving style. Aggressive driving, over-revving and late braking all use up more fuel, whereas smooth acceleration and braking, combined with moving up through the gears as soon as possible, will save money.

Watch your speed - Speeding carries the risk of a fine and points on your licence but it also uses more fuel, for example driving at 80mph can use up to 25% more fuel than at 70mph (and remember that this is a limit, not a target - particularly as we head into darker evenings and inclement weather.)

Eco mode - If the vehicles have different drive modes, such as eco-mode for greater fuel efficiency, familiarise staff with how and when to use them.

Lighten the load - Removing any excess weight can lead to more miles per gallon, so look at what’s being kept in the boot or on the back seats. Do you need to carry all those bulky items all the time?

Tyres - Make sure that vehicle tyres are always inflated to the correct pressure. This will not only help with road safety but will also reduce tyre wear and improve fuel consumption.

Air conditioning - Avoid leaving air conditioning on for long periods as it can put a strain on the engine and use more fuel. Driving with windows open can also create drag and use more fuel.

Embrace technology - Vehicle telematics and driver management systems can help to identify problem areas and encourage drivers to be more considerate road users – leading to better fuel economy, fewer driving offences, incidents and insurance claims.

Route planning - Effective journey planning to avoid traffic jams and black spots will mean less idling in traffic and more efficient driving.

Avoid obstacles - Always be looking ahead so you can anticipate traffic lights, roundabouts and zebra crossings, ease off the accelerator if needed and keep moving, with fewer stop-starts.

Read the road - Planning ahead & using gravity to build up momentum when going downhill will help you get uphill with less accelerating and less fuel. Smooth progressive driving also helps reduce the risk of being involved in a collision. Anticipating hazards and using acceleration sense can help to reduce fuel usage, cause less tyre wear and reduce carbon emissions.

Filling up.

Check prices - Prices at the pump can vary quite dramatically and will be more expensive on motorways.  There are several price checker apps & websites which list the cheapest places in your local area to refuel.

Fuel cards - Consider issuing company fuel cards to drivers to make it easier to fill up, monitor spending and manage fuel expenses efficiently.

This blog content courtesy of QBE Europe