Related: Accident Management Costs Continue Modest Increases
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.

Photo courtesy of iStockPhoto.com

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.”
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.
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.
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.
More Operations

How to Manage Conflict for Your Fleet Operations
Conflict management is becoming a core leadership skill. Here are five strategies fleet leaders should know.
Read More →
Turning Connected Vehicle Data Into Decisions That Matter
Fleet leaders have more data than ever, but turning that data into clear, actionable decisions remains a challenge. This white paper shows how leading organizations are using connected vehicle data to improve safety, reduce costs, and optimize fleet performance. Learn how to turn insight into action across your fleet.
Read More →
Cameras, Safety and Insurance: From Reactive Claims to Real-time Prevention
Commercial auto remains one of the most challenging and costly lines of coverage for fleet operators and insurers alike. Learn more about how to effectively address these issues from Onur Aksan, Enterprise Business Development Executive, Geotab.
Read More →Are You Tracking Your Fleet's True Total Cost of Ownership?
Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.
Read More →
Turn Fleet Data Into Smarter Decisions
Fleet leaders have access to more operational data than ever, but disconnected systems and unclear metrics often slow decision-making instead of improving it. This article outlines five practical steps fleets can take to transform fragmented data into actionable insights that improve planning, safety, utilization, and long-term performance.
Read More →
Hybrids: Electrification Without the Challenges
For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.
Read More →
How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations
James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.
Read More →
Fleet Meets: Steven Santostasi
This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.
Read More →
Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools
Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.
Read More →Soap Box Derby Challenge: Assembling the Crew
Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.
Read More →
