30 May The Importance of Fleet Claims Management: A Comprehensive Guide

Businesses should never underestimate the importance of fleet claims management. The right procedures and tools will reduce the risk of costly damage and the cost of time involved in handling claims that may still occur. Specific benefits of fleet claim management include improved safety, reduced costs, fewer errors, and excellent compliance with regulations. Most importantly, managing accident claims helps preserve the company’s good reputation for caring about the safety and well-being of its employees and the community.

The Cost of Fleet Accidents

Aside from valid concerns over safety and reputation, the financial cost of accidents and other sources of vehicle damage will offer plenty of justification to invest in fleet claims management. For instance, Fleet Management Weekly reported that work-related accidents account for 40 percent of all vehicle collisions, and over half of these cause employees to miss work.

Even more, the publication found:

• Accidents with property damage result in average costs of about $6,000.
• Adding in injuries can multiply that $6,000 figure by 10.
• Meanwhile, a company’s average price for fatal accidents exceeds $600,000.
• These sums add up to losses of several billion dollars for American employers each year.

How Does Fleet Claims Management Reduce Accident Costs?

Claims management is a  policy and process designed to minimize risks and handle repairs and claims. These processes reduce costs by reducing the chance of accidents and other sources of damage. When damage does occur, claims management procedures should ensure accurate reporting and prompt disposition. 

Benefits of a Fleet Claims Management System

Besides claims management, fleet managers must attend to several other critical tasks, like fuel management, procurement, and route planning. Efficient companies rely on digital technology to save time, prevent errors, and maximize returns. Fleet Response provides a fleet claims management system with several vital features, including: 

1. Accident Reporting 

Fleet managers need prompt notification of any vehicle damage, from a major accident to a broken mirror. Fleet Response Mobile makes it easy for drivers to submit reports, including text descriptions and photos. The system automatically forwards information to the fleet manager and tracks the incident until completion. 

2. Claims Investigation

Insurance companies, fleet managers, and other stakeholders can use the information in the system for claims investigation. This supporting data will help companies prove the claim’s validity and ensure a fair settlement. 

3. Claims Processing

The app’s damage reports should contain all of the information needed to report claims to insurance carriers and repair shops. In addition, combining a fleet claims management system with a proactive program to address frequent sources of damage may help companies earn discounts from their insurers for effective risk management. 

4. Analytics and Reporting 

Damage data allows fleet managers to look for trends in the type of accidents and other incidents that result in claims. This data can help inform policies, training, and insurance policy selection. Future reports can also assess the effectiveness of any measures taken. 

Best Practices for Fleet Claims Management

Best practices of the fleet claim management program should include:

• Safety programs: These programs offer driver safety instruction, provide coaching, and identify at-risk vehicle operators. Thus, they can reduce the chance of accidents, improve safety, and lower costs.
• Claims processing: Ensure prompt claims filing and processing with a system for reporting accidents, gathering information, and monitoring progress. Information from claims can also provide valuable lessons for training programs. 
• Repair management: The company should maintain a list of certified repair shops and reputable salvage yards for vehicle repairs or dispositions. Other requirements include repair tracking, invoice management, and approvals.

The Next Steps

Fleet vehicles can suffer damage because of accidents, vandalism, or theft. Even worse, these incidents can cause injuries and sometimes, reputation damage. Thus, businesses must allocate a sizable portion of their budgets for insurance, repairs, medical treatment, and even legal settlements, reputation repair, or fines.

Thus, fleet managers can help save time, money, and their company’s reputation by reducing the risk of accidents and handling any accidents that still occur as efficiently as possible, which makes fleet claims management vital. Primarily, effective processes and tools make managing loss and damage more efficient by reporting upon the incident from its occurrence to its close. Fleet managers can also use the information they gather to reduce risks, which should lead to fewer problems in the future. 

Here at Fleet Response, our insurance background makes us uniquely qualified to handle every stage of fleet claims management, from the first loss report to the final repair approval. We custom tailor our programs to each customer’s unique requirements for a flexible, transparent, and seamless program. Find out how to preserve time, money, and reputation with fleet claims management from Fleet Response.