How to Stop Employee Misuse of Company Vehicles

If your employees are using company vehicles, then you’ve probably seen (or heard about) crew members misusing them.

Sometimes team members get a little too comfortable with their fleet vehicles and decide to take them for a spin after hours, use them to run personal errands, or even drive them to side jobs. It’s a common problem, and it uses up fuel that you paid for. It also exposes fleet vehicles to unnecessary wear and tear and increases your liability risk.

So how do you curb unauthorized vehicle use?

In this post, we’ll discuss three major consequences of employee misuse of company vehicles and five ways to combat it.

3 Major Consequences of Employee Misuse of Company Vehicles

Misusing fleet vehicles is a serious violation of trust. While some businesses are lucky enough to scrape by with barely any damage, many end up mired in legal and financial consequences, as well as your company’s reputation.

Specifically:

1. Increased Maintenance Costs

Off-the-clock driving means your vehicles rack up more mileage and spend more time on the road. This hastens car depreciation and can cost your business big time. Also, the unnecessary wear and tear means more trips to the ship and more cash spent on repairs and tune-ups.

Now, we’re not suggesting that employees that drive company vehicles off-hours are driving like they were in an action movie. But even the best driver can’t totally predict what will happen on the road. And those additional miles will still be put on the odometer regardless, accelerating progress towards repair and replacement.

2. Increased Fuel Costs

If you cover the fuel costs for your drivers, and they’re using your vehicles off the clock, you can expect your fuel costs to skyrocket. Especially if you give them free access to a company card to buy gas or they have lax reporting requirements. 

Speaking of which: the fewer processes in place you have to track and report on fleet vehicle usage, the greater the risk employees will abuse the system. They own’t bat an eye at using your vehicles to run errands, do side work, or go on joy rides–all on your dime. 

In a recent Spytec GPS case study, the owner of Freedom Drywall reported that, before she figured out employees were misusing her fleet vehicles, she was spending almost $2,000 every two weeks on gas alone. But once she introduced GPS tracking to better monitor her vehicles, she reduced monthly fuel costs by a whopping 25% or $1,000 a month.

3. Increased Liability Risk

As a vehicle-dependent business, you already have to juggle risk and liability with insurance, employee policies, contracts, and more. But the liability doesn’t go away when your employees decide to take their fleet car for a weekend drive.

Accidents and unforeseen events are stressful enough, but unauthorized use makes them even scarier–especially when there’s a non-employee involved. Ride-alongs are incredibly risky, since any non-employee involved in an accident can sue your business for damages. That applies to pedestrians and other drivers too. It doesn’t matter whether you knew your company vehicle was being used off the clock–the liability is the same.

In addition to deterring employees from using company fleet vehicles for non-work purposes, GPS tracking devices make workers less likely to speed and drive recklessly. This can dramatically improve driver safety and protect your reputation by keeping accidents and fines at bay.

5 Ways to Halt Employee Misuse of Company Vehicles

Big or small, the effects of vehicle misuse add up over time. If you fail to nip it in the bud now, you could find yourself in lots of trouble later. But how can you curtail vehicle misuse while maintaining a positive employee-employer relationship?

1. Invest in a GPS Tracking System

There’s a reason so many businesses use GPS trackers like the Spytec OBD tracker to monitor their fleet vehicles: Tracking company assets prevents loss due to theft, encourages responsible driving, and lets managers and owners see every trip for every company car. 

But GPS trackers aren’t just beneficial for business owners. Remember Freedom Drywall? They owner said her crew was initially reluctant to accept trackers in the company trucks. But eventually, they realized that they weren’t spending as much time on the phone checking in with their schedules and locations. Plus, they knew they’d have instant help if they ever broke down or got into an accident.

The truth is, it’s difficult to end a problem you don’t have proof for in the first place. But GPS tracking makes such documentation possible–even easy.

If someone takes their fleet car out of the lot after hours, you get a notification. And with a single tap or click, you can view that vehicle’s real-time location. You can also build a report of where it went after the fact, which can come in handy when confronting the employee the next day.

2. Create Policies and Protocols about Company Vehicle Use

Speaking of documentation: Draft up a company vehicle use policy that details exactly how and when vehicles should be driven. Include protocols that specify what to do if an accident or unforeseen event arises. Then, have everyone on your team sign it.

With written documentation and employee signatures on record, anyone who misuses a company vehicle will have breached the contract–and that’s grounds for termination. Note that this has to comply with local employment laws.

Of course, you can still grant the ability to break protocol under circumstances. But the key word here is permission. No one should be using the vehicles outside of contractual guidlines without your authorized consent.

3. Check Driving Records Before Hiring Employees

If you don’t already do so, start checking the driving records of your candidates as part of the assessment process. If they’re going to be driving vehicles branded with your company name, you need to know they’re safe, responsible drivers with a clean record.

If a candidate has an excessive number of speeding tickets, outstanding fines, DWIs, or other demerits, that may be a sign they’re not fit to drive a company vehicle. If you still decide to take a chance on them, do so at your own risk.

4. Choose a Comprehensive Insurance Plan Over a Basic Plan

Basic insurance plans work well for small businesses that are just getting started. But if you can afford it, opt for a comprehensive insurance plan instead. Specifically, look for a plan that covers losses and common repairs. While it could be more expensive month-to-month, comprehensive plans can keep your wallet fuller in the long run.

There are lots of ways you can save on your commercial auto insurance premiums–and installing GPS tracking devices is one of them. Be sure to read up on tips for cutting those costs for the benefit of your business.

5. Keep an Airtight Record of Driver Information and Vehicle Locations

Finally, keep detailed records of all your drivers and vehicles. These records should include employee’s current licenses and company vehicle histories. Having easy, reliable access to this information.