Automotive Fleet

DEC 2013

Magazine for the car and truck fleet and leasing industry

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VIOLATION MANAGEMENT AVERAGE TOLL VIOLATIONS BY STATE *$3 for frst violation; then $100 per toll if unpaid. Colorado $40 Illinois $25 $20 While an individual toll violation often costs little, they can quickly add up for large, urban and multistate feets. Toll violations account for more than 50 percent of all the vehicle violations that are issued in the U.S. Adam Draizin, president of feet services for ATS, said that he believes that with the correct approach, these violations can be virtually eliminated. Washington $27 New Jersey $25 California $25 North Carolina $25 ESTIMATING FLEET ACCIDENT COSTS A Florida Texas SOURCE: INSURANCE INSTITUTE FOR HIGHWAY SAFETY, NOVEMBER 2013 sk any feet manager, and they'll agree that ac- cidents, apart from being an inconvenience, are expensive. There are a number of calculators available to help feet managers estimate the costs of an accident. The calculator available from The CEI Group multiplies a feet's total number of accidents with the average cost per accident to determine the feet's total annual accident cost, or lost profts. The tool then divides that number by the company's operating proft margin to establish the total additional revenues needed to offset the feet's accident costs. Here's an example of how to perform the calculation: Fleet Size: Accident Rate: Number of 250 vehicles x 20 percent* = Accidents Per Year: 50 Number of Accidents Per Year: 50 x Average Cost Total Annual Per Crash: = Accident Costs: $825,000 $16,500 If the company has an operating proft margin of 10 percent, it would require additional revenue of $8.25 million to simply offset these accident costs. *20 percent is the feet industry-consensus on average accident rate for feets. 52 Oklahoma $3 - $100* $15 AUTOMOTIVE FLEET I DECEMBER 2013 and accessible to a plaintif 's attorney. So you have the possibility that a driver with two, three or four speeding camera violations might have a clean MVR, and may even be recognized for being a safe driver, when the fact is that he or she has violations in their history that the feet hasn't identifed. When a feet doesn't know that and has never taken any steps to remediate the driver's behavior, it is exposed to the danger of being found guilty of negligent entrustment, and there are plenty of examples where the costs have been astronomical." Eliminating the headaches, liability, and risk associated with violations, can go a long way to saving the feet money and making it a safer operations as well. While parking tickets are a scourge that'll probably be plaguing feet managers far into the future, Draizin said that there are violations that can be virtually eliminated. Case in point, toll violations. "We believe that we can live in a world where anywhere there's an ability for electronic toll collections, we can eliminate violations," Draizin said. Te key is to be proactive instead of reactive. Draizin said that ATS has solved this problem by developing a way for feets to go to an all-electronic, centralized system, using either a transponder or a license plate, which eliminates any violations. In parking and photo enforcement, the key to managing these violations is transferring liability. About 60 percent of the time liability can be transferred to the driver, according to Draizin. "We want to take cost out of the feet world, and we've found that we can reduce [violation] costs between 60 percent and 90 percent," he said. Fighting technology with technology can be a key component in efectively managing violations. An automated violation management program can save feets money and time, and incentivize drivers to improve their behavior. ATS and Te CEI Group are working together to merge ATS' VioLogics violations management program into CEI's DriverCare program in order to enhance their clients' abilities to improve the safety of their feets. Te merged products are currently undergoing beta testing. "ATS and CEI have integrated our systems so that, with a single sign-on, feets can link camera violation data that comes from ATS with the individual feet driver

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