According to a recent Coast survey, 60% of fleets aren’t tracking their insights and efficiency in an automated way, and only 25% monitor fleet costs beyond basic fuel consumption. Standardized fleet management policies are a great way of eliminating these blind spots.
Surprisingly, only 32% of fleets share written or oral policies with their drivers, highlighting a critical gap in policy implementation across the industry.
A fleet management policy streamlines procedures and standardizes expectations for your drivers, eliminating guesswork and inconsistency. Instead of dealing with each situation as a unique case, you can rely on established protocols that apply across your entire operation.
In this comprehensive guide, we’ll dive into what a fleet management policy is, why it’s crucial for your operation, and what components your fleet policies must include to be effective.
What are Fleet Management Policies?
Fleet management policies are rules that define company vehicle usage, driver standards, accident management protocols, and training procedures. Fleet policies are critical to maintaining a high-performing fleet and increasing driver retention.
Let’s examine why these policies are essential and explore their key components, particularly focusing on fleet safety policies.
Why you Need a Fleet Management Policy
A well-structured fleet management policy provides three essential benefits.
Standardization: Everyone from drivers to management knows what’s expected. This eliminates confusion and creates streamlined operations across your fleet.
Liability protection: Written fleet safety policies enforce safe behavior, ensure regulatory compliance, and positively impact insurance rates.
Reduced Total Cost of Ownership: Implementing strong fleet policies promotes proactive maintenance and proper vehicle usage within lifecycles.
Fleet Safety Policies
Fleet safety policies are a subset of fleet management policies and are usually one of the most important parts of fleet operations. Safety policies focus on protecting drivers, vehicles, and others on the road through clear protocols around driving behavior, vehicle maintenance standards, and operational safety requirements.
Fleet safety policies zero in on elements like vehicle inspection schedules, safe driving guidelines, accident prevention protocols, and driver qualification requirements. These policies help maintain both regulatory compliance and operational excellence while creating a culture of safety across your fleet operations.
This proactive approach to fleet safety management prevents accidents and reduces risk across your operations.
9 Components Your Fleet Management Policy Must Include
Before diving into the essential components of your fleet management policy, it’s important to note that one size doesn’t fit all. The fleet policy you create must align with your operational needs, fleet size, and industry requirements.
Let’s explore the nine critical components every fleet policy must include, from safety statements to comprehensive checklists. Each component addresses specific operational challenges while working together to create a cohesive fleet management system.
Fleet Safety Policy Statement
A fleet safety policy statement defines your organization’s overall approach and commitment to safety. This foundational section is a high-level overview that sets the tone for all other safety-related policies and procedures.
It should clearly outline your company’s safety philosophy, objectives, and the responsibilities of everyone involved in fleet operations.
Fleet Policy Scope
This section of your policy must define who your policies apply to. Typically, this includes drivers, fleet managers, and management. The scope section should outline specific responsibilities for each role—for example, what drivers must do versus what fleet managers oversee.
Including a clear scope is crucial because it eliminates confusion about who must follow which procedures. It should also address seasonal workers, contractors, and part-time employees to ensure no gaps in policy coverage exist.
Fleet Spending Policy
This section of your policy must establish clear spending rules and approval workflows. Our survey data shows that over 50% of fleet organizations report unauthorized employee spending as their biggest vulnerability to fraud, making this a critical component of your policy.
For instance, nearly half of the fleet managers we surveyed reported drivers using premium fuel when regular is required, unnecessarily increasing costs.
Your spending policy should define precise spending limits and outline clear procedures for exceptions that require manual approval. Setting these clear boundaries, along with exception procedures, creates accountability while maintaining operational flexibility.
Vehicle Use Policies
This section of your policy must clearly define the conditions under which drivers can operate company vehicles. It needs to establish specific rules about vehicle assignments and usage boundaries.
For instance, establish clear rules about whether employees can take company vehicles home and how temporary or part-time employees can access fleet vehicles. This section needs to be explicit about personal use limitations to prevent misuse and control costs.
Driver Management Policies
This section of your policy must outline driver qualification requirements, evaluation criteria, and the signs of a high-risk driver. Establishing driver standards communicates expectations to employees clearly and prevents non-compliance.
Our data shows that driver non-compliance and resistance to change are significant hurdles to reducing fleet fuel spending. By establishing clear qualification standards and regular evaluation procedures upfront, you can protect your fleet from these issues.
Accident Reporting Procedures
This section of your policy must clearly outline both driver and management responsibilities following an accident. It should establish a step-by-step protocol that includes immediate actions, reporting requirements, and documentation procedures.
Your policy needs to define criteria for remedial action, how you will review accidents, and who is responsible for conducting these reviews. Having these procedures clearly documented ensures consistent incident handling and protects your organization from liability.
Vehicle Inspection And Maintenance
This section of your fleet policy must specify when and how you’ll carry out maintenance. It should establish inspection schedules, documentation requirements, and reporting protocols for routine and unexpected maintenance needs.
Your policy should also outline what systems (like telematics) you’ll use for tracking maintenance needs and define specific KPIs for identifying vehicles requiring service. This creates a systematic approach to fleet maintenance rather than relying on reactive repairs.
Driver Safety Policy
This section of your policy must outline the conditions under which drivers can and cannot operate vehicles. It must establish clear rules about phone usage, distracted driving, and required breaks.
Your policy should also detail driver monitoring procedures—how you’ll track driver behavior and what metrics you’ll use to measure policy compliance. Being transparent sets clear expectations and encourages safer driving practices.
Fleet Safety Checklists
Include all necessary checklists for daily operations to enforce standardization and data collection. These checklists should cover vehicle inspections, accident reporting procedures, and insurance information gathering.
Clear, standardized checklists ensure nothing gets overlooked during routine procedures and emergencies. Your policy should include the checklists themselves and instructions for their use, making them easily accessible to all personnel.
How to Create a Fleet Policy
Creating an effective fleet policy requires a systematic approach. Let’s break down the key steps to develop and implement a policy that works for your organization.
- List all important sections in your policy. Use the nine components outlined above as a starting point. Add more sections depending on your fleet’s needs.
- Define the scope. Identify who the policy applies to and their responsibilities.
- Define driver behavior standards. Set clear expectations for vehicle operation and fleet safety management protocols.
- Define KPIs to monitor behavior. Establish metrics for driver performance. Lean on data from software like smart fuel cards and fleet management systems.
- Define vehicle lifecycle standards. Create data-backed guidelines for vehicle maintenance and replacement.
- Set KPIs to monitor vehicle performance. Establish metrics for tracking fleet efficiency.
- Create checklists. Develop standardized forms for routine procedures and emergencies.
- Communicate policy to stakeholders. Share and explain procedures to all affected personnel. Make policy training compulsory for new hires.
- Execute and review policy. Implement procedures and regularly assess their effectiveness.
Power Your Fleet Policies With the Right Tools
While creating comprehensive fleet management policies takes time and effort, they’re essential to maintaining control over your operations and ensuring safety and efficiency.
Most fleet managers rely on outdated manual tools, making fleet monitoring an impossible task. Software like Coast’s smart fuel cards simplify and automate fleet policy enforcement, giving you more time to focus on increasing operational efficiency.
Learn how Coast’s open-loop Visa fuel cards simplify fleet policy compliance.
