Automotive Fleet
MenuMENU
SearchSEARCH

Charging Deductibles for Preventable Accidents

Fleet managers have a tough decision to make: whether or not to charge drivers the cost of a deductible should an accident occur.

September 18, 2015
Charging Deductibles for Preventable Accidents

Photo courtesy of iStockPhoto.com

3 min to read


Photo courtesy of iStockPhoto.com

Editor's note: This practice is illegal in some states, check with your company's legal department to see if your state is affected. 

Preventable accidents can occur at any time. The Federal Motor Carrier Safety Administration (FMCSA) defines a preventable accident as “one which occurs because the driver fails to act in a reasonably expected manner to prevent it.”

Ad Loading...

Fleet managers have a tough decision to make: whether or not to charge drivers the cost of a deductible should an accident occur.

There can be both pros and cons to charging employees for preventable accidents.
“From our experience, pros to charging for preventable accidents include a revenue stream for the fleet program and increased driver accountability,” according to Eliot Bensel, director, accident management & risk safety at Element Fleet Management.

Additionally, driver accountability largely plays into the success of such a program.
“Charging a driver a deductible may work for the very first incident and future incidents if there are actual consequences for noncompliance,” said Bob Martines, president at Corporate Claims Management (CCM).

Consequences must be clearly delineated and followed through on.

“We have witnessed clients with no control over their drivers accept three and four accidents go unreported as the driver knows there are no consequences. Charging an escalated deductible along with lost driving privileges, plus making the driver’s manager accountable, is a sure way of getting a head start in determining the true number of incidents that can be trained to avoid in the future,” Martines said.

Ad Loading...

While The CEI Group supports fleets that decide to require reimbursement for damages they’ve caused, Brian Kinniry, senior director, strategic services for The CEI Group, noted that “the data we’ve seen isn’t conclusive as to whether this has had any effect on their accident rates.”

And, while there may be additional revenue streams and driver accountability, there are some difficulties.

“The cons center on an administrative burden and morale, as such programs can have negative effects on employees and prospective employees. Also, state and federal laws vary so these must be clearly understood to avoid legal risk. We do not recommend instituting a deductible policy; however, if fleet managers are interested in this practice, they need to do their homework. Senior leadership and HR must also be involved in this process, which should include seeking out expert advice, conducting research, and concluding that it makes sense from a financial, administrative, and employee morale perspective,” said Bensel.

For fleets that have decided to charge for preventable accidents, being a proactive fleet manager and enforcing policy can go a long way toward success.

“I witness firsthand the difference with companies proactive with controlling a driver’s actions versus others that are not. Drivers who know their own company policy is not enforced by management will either not report the accident (or multiple accidents) at all or will report old damage as ‘parking lot, vandalism, or unknown’ when they are reporting an accident they know is not chargeable against them,” Martines of CCM continued.

Ad Loading...

Kinniry of The CEI Group also noted concern over driver accountability and distorted data. “One of our concerns with this practice is that it may distort accident data. For example, a driver who wants to avoid the reimbursement charge may change his description of the accident from one that was preventable to one that wasn’t in order to avoid having to pay the penalty,” he said.

Subscribe to Our Newsletter

More Operations

A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →
OperationsApril 30, 2026

Factory Installed vs. Aftermarket: Choosing the Right Telematics Path & Managing the Data

As fleets rethink how they capture, manage, and act on vehicle data, telematics is at a major inflection point. In this episode of the Fleet Forward Podcast, we dive deep into one of the most pressing questions facing fleet leaders today: Should you rely on OEM factory-installed connectivity, aftermarket devices, or a hybrid of both?

Read More →
Ad Loading...
OperationsApril 30, 2026

What Real-Time Data Reveals About EV Cost, Performance, and Scalability

Experts from telematics analytics, fleet-as-a-service operations, and national EV benchmarking share how real-time data is reshaping fleet strategy—dispelling assumptions, validating best practices, and exposing costly missteps.

Read More →
OperationsApril 30, 2026

Planning Through Policy Shifts: What Fleets Must Track in 2026

A powerhouse panel featuring experts from the American Automotive Leasing Association, CalSTART, and municipal fleet leadership dives into the realities of navigating shifting emissions rules, regulatory waivers, federal agency actions, the future of the EPA’s endangerment finding, and the push for unified standards. They also examine the impacts of tariffs, autonomous vehicle policy, battery innovation, and the accelerating global EV market.

Read More →
OperationsApril 30, 2026

Managing Market Turbulence with Strategic Fleet Insights

This episode kicks off with a deep dive into the technologies and market forces reshaping today’s fleet landscape. Host Chris Brown is joined by Laolu Adeola (Leke Services), Tyson Jomini (J.D. Power), and Richard Hall (ZappiRide) to break down real-world data, shifting incentives, and practical strategies fleet leaders can use right now.

Read More →
Ad Loading...
Clipboards with flooded cars in background.
Disaster Responseby Chris BrownApril 30, 2026

Adapting Fleet Policy When Disasters Strike

In the middle of natural disasters fleet managers must shift priorities to protect people and assets. What policy items should be loosened, and when should the line be held?

Read More →
OperationsApril 24, 2026

EV Reality Check: How Fleets Are Managing Policy Shifts, Safety, and Scaling Challenges

In this episode, fleet leaders from municipal, university, and private-sector organizations share a candid EV reality check. From infrastructure setbacks and policy whiplash to grant funding, total cost of ownership, and charging resiliency, this conversation dives into what it actually takes to scale electrification in the real world.

Read More →
2019 Automotive Fleet Hall of Fame inductees Joe LaRosa Bob Miesen Bud Morrison Theresa Ragozine portraits
Operationsby StaffApril 21, 2026

Fleet Hall of Fame Honorees Through the Years

A running list of the fleet industry’s most influential leaders, recognized for their lasting impact on commercial fleet management.

Read More →
Ad Loading...
Operationsby Chris BrownApril 20, 2026

2026 Salary Survey: Six-Figure Fleet Manager Salaries Become the Norm

After a decade of lagging compensation, fleet manager pay is climbing. But expanding responsibilities, larger fleets, and growing complexity continue to redefine the role.

Read More →