Grey Fleet

Posted on 1st April 2023.

As businesses continue to look for ways to cut costs, the use of personal vehicles for business purposes has become increasingly popular. Known as "grey fleet" vehicles, these are personal cars, vans, or trucks that employees use for business-related travel. While it may seem like a cost-effective solution, the use of grey fleet vehicles can actually pose significant risks to both employees and the company.

First and foremost, grey fleet vehicles are not subject to the same safety checks and maintenance schedules as company-owned vehicles. This means that employees may be driving vehicles that are not properly maintained, which can lead to accidents and breakdowns. Additionally, employees may not be aware of how to properly maintain their vehicle, resulting in increased wear and tear and decreased fuel efficiency.

Another significant risk associated with grey fleet vehicles is liability. When an employee uses their personal vehicle for business purposes, the company can be held liable for any accidents or incidents that occur. This means that if an employee is involved in an accident while driving their personal vehicle for work, the company could be held responsible for damages or injuries.

Finally, the use of grey fleet vehicles can also have a negative impact on the environment. Personal vehicles tend to be less fuel-efficient than company-owned vehicles, which can lead to increased carbon emissions and contribute to climate change.

So, what can businesses do to mitigate the risks associated with grey fleet vehicles? One option is to provide company-owned vehicles for business-related travel. This ensures that all vehicles are properly maintained, meet safety standards, and reduces the company's liability in the event of an accident. Long term rental (sometimes now called subscription rental) or short-term hire, alleviates all issues of poorly maintained vehicles. The ability to hire and off hire also means not having to purchase or contract vehicles over long periods. Using your company insurance ensures compliance with the policy allowing for business use, not always available with a private policy.

Another option is to implement a comprehensive grey fleet policy. This policy should outline the expectations and requirements for employees who use their personal vehicles for business purposes, including maintenance requirements and insurance coverage. Additionally, businesses should provide training to employees on how to properly maintain their vehicle and safe driving practices.

In conclusion, the use of grey fleet vehicles may seem like a cost-effective solution, but it can actually pose significant risks to both employees and the company. By providing company-owned vehicles or implementing a comprehensive grey fleet policy, businesses can help ensure the safety of their employees and reduce their liability.