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CEI

Managing an Accident's Impact on Your Truck Fleet

A single fatality accident can cost a fleet as much as $7.2 million. There are concrete steps fleet managers can take to prevent crashes, minimize the costs of those that do occur, and recover some funds. The key is following best practices.

OEM Parts Prices Increase as Parts Availability Decreases

Slow retail sales have prompted not only closure of assembly plants, but also component factories, which is delaying parts deliveries. OEMs are also hiking parts prices, with some experiencing double-digit percentage increases. The dramatic slowdown of automotive sales has also created a "financial crunch" for many parts manufacturers, with many second-tier suppliers going out of business. This portends a difficult environment for fleets to manage accident repair costs.

Accident Management Costs Trend Upward

On average, 20 percent of fleet vehicles are involved in accidents each year. Although this percentage has remained steady from 2005-2007, the cost of repairing these vehicles is rising.

Accident Management Costs Hold Steady

The average fleet claim severity for 2006 was $1,869.87, an increase of $48.81 over 2004. Also experiencing a slight increase in 2006 was the percent of accidents deemed preventable.

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