What is a grey fleet and what does it mean for you?

22/02/2018

Size matters vans

A grey fleet is a fleet of drivers who use their own cars for business purposes. This means that a grey fleet is any vehicle used by an employee for making work-related journeys.

What is a grey fleet and what does it mean for you?

A grey fleet is a fleet of drivers who use their own cars for business purposes. This means that a grey fleet is any vehicle used by an employee for making work-related journeys.

This can include a cash-for-car, a car purchased via an Employee Car Ownership scheme, a privately-owned vehicle used for occasional journeys or a vehicle that an employee has hired outside of any company-provided scheme.

Having a grey fleet is most beneficial for businesses that do not have high business mileage. This is because drivers will be making fewer journeys, which in turn will hopefully lead to fewer risks.

For larger fleets, and ones who travel further distances, grey fleets can be harder to manage. From tracking mileage to accident management and general vehicle maintenance, there is a lot more at risk with a grey fleet. This means you need someone who is able to be responsible for implementing work-related road risk management effectively. Any policies and procedures that are in place in your business need to take into account the management issues associated with all employees, not just employees who drive a company-managed car.

If a grey fleet driver is out on business using their own car, your business could be liable if an accident were to occur.

It is also important to take care with hire cars. When an employee is using a hire car rather than their own for business journeys, it is important that the car is booked and hired to the company, not the individual. This is because it’ll be under retail insurance, and not business insurance.

Operating a grey fleet means having to check drivers insurance, manage their vehicles and ensure all necessary vehicle checks are undertaken on vehicles you don’t own.

Both in managed and grey fleets, it is your job to meet your Duty of Care, comply with relevant legislation and to meet your Corporate Social Responsibility.

Do you manage a grey fleet? Let us know on Twitter and LinkedIn.

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