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Calculating crash costs

Work-related road crashes are much more expensive than many organisations realise. The cost comprises more than the repair bill for the vehicle and often less might be covered by insurance than assumed. It has been estimated that the full cost to the employer might actually be $15 to $75 for every dollar recovered through an insurance claim. In addition, some items cannot be covered by insurance. 

It’s best not to have a crash in the first place - and other organisations have proved that some simple measures anyone can take, like those described in the Occupational Road and Fleet Safety Guide, will make one much less likely.

Insurers know that generally, organisations with effective risk management measures in place have the lowest incident rates. Consequently, if you are able to demonstrate a proactive and effective attitude to risk management you are very much better placed to exercise control over your costs – not only over your insurance costs, but also the hidden costs of road crashes such as having a damaged vehicle off the road, and the cost of hiring a temporary driver.

Despite the strength of evidence in support of the business case for fleet safety risk management, an organisation may still find that short-term operating pressures can cause staff to ‘cut corners’ on road safety – even though it acknowledges that the results of road crashes could be disastrous for its operations. Hence the need for a Fleet Safety Management System that is understood and complied with by all members of staff involved in driving-related activities. 

This accident cost calculator is intended for organisations who want to understand the cost of crashes incurred by their fleets, in addition to the on- and off-the-job costs of crashes for all their employees. Knowing a fleet’s costs enables management to develop a business case that supports an investment in fleet safety. 

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