Three Reasons to Not Use Driver Reimbursement

fleet vehicle, truck driving, fleet leasing, corporate fleetDoes it make better business sense to provide company vehicles for your employees or would it be more beneficial for you to reimburse them for using their personal vehicle? To save costs, reimbursing would be the best choice, since fleets are usually in the top spending categories for a company, but here’s why we believe the better choice is to avoid driver reimbursement:

  1. Hiring advantage
    • Many companies use company vehicles as a recruiting tool and added benefit to the employee, especially if their competitors are not.  This  allows you to have a competitive edge when hiring top-caliber salespeople, technicians and managers.
  2. Increase Liability Exposure
    • Some companies believe that they are eliminating insurance exposure with a car allowance.  But once the insurance company have exceeded the employees coverage, they will go after the employer for the remaining damage and more.
  3. Company Image
    • By having just a driver reimbursement program, you are allowing the employee to determine what they drive and how well it’s maintained.   In fact, most reimbursement programs don’t cover the maintenance, which could result in the employee deferring  routine or unexpected maintenance, resulting in breakdowns and vehicles/employees out of commission.  The wrong or a broken down vehicle could result in the loss of a customer.

Providing company vehicles not only boosts employee morale, but it takes control back of your fleet.  Let us help you take the headache out of managing your fleet.

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  • No Mileage Restrictions
  • No Wear & Tear Clauses
  • No Administrative Fees
  • No Management Fees

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