Insurance Premiums and Repairs are Fastest Rising Cost Components for Businesses with Drivers
BOSTON, Mass., November 21, 2019 – Motus, the definitive leader in reimbursement solutions for businesses with mobile-enabled workforces, today released its 2019 Motus Driver Safety Report. The report examines the expenses associated with vehicle incidents and the impact on employers with mobile-enabled workers. According to the findings, costs incurred by businesses from insurance premiums, vehicle repairs, lost productivity and more amounted to $57.9 billion last year.
“Driver safety is a top priority for businesses when it comes to their mobile employees,” said Ken Robinson, market research analyst for Motus. “By understanding the potential risks to employees and implementing driver safety programs to help reduce accidents, organizations can protect their team members from harm. As an added bonus, it turns out safer drivers have a measurable and significant positive impact on the bottom line.”
The 2019 Driver Safety Report found that car insurance is a major cost component of driving costs (19%), and that car insurance premiums have increased an astounding 23% since 2011. On top of that, vehicle repairs following an incident are becoming more expensive due to new technologies including electronics and advanced safety features. Not only have the average number of parts per repair increased, but parts now make up 43% of total accident repair costs for vehicle models released after 2017. The report also examines how vehicle incidents affect productivity and well-being, finding physical injuries suffered as the result of crashes cause employees to miss work an alarming 53% of the time.
“Companies that put an emphasis on driver safety are doing right by both their employees and the business,” said John Petrucelli, Vice President, R&D and Product Innovation at Motus. “At Motus, our individualized safety training programs provide teams with the tools they need to combat hazards on the road. These Motus Drive Safe programs have resulted in a 35% reduction in collision rates among our customers. It’s a resource that can be life-changing, considering the dangers associated with vehicle incidents and the rising number of collisions annually.”
Additional findings in the 2019 Motus Driver Safety report include:
- The average car insurance premium has increased every single year since 2013. More frequent accidents and higher repair-cost trends are likely to keep edging car insurance premiums upward.
- Populated by high-mileage drivers, typical accident rates in company-owned vehicle programs are about 20%. That is more than three times the accident rate for the average U.S. driver.
- The average front-end collision repair costs grew from $1,652 for a 2010 Chevy Malibu to $3,627 for a 2018 Chevy Malibu.
- The average vehicle accident repair cost in 2018 was $3,053.
To access the full report, please visit: https://resources.motus.com/reports/2019-motus-driver-safety-report
To learn more about Motus Drive Safe, please go to: https://www.motus.com/driversafety/
Motus is the definitive leader in solutions for businesses with mobile-enabled workers and fleets of any size. The Motus technology platform simplifies both mileage and mobile device reimbursement with proprietary software that calculates personalized and compliant reimbursements for each employee, while improving employee productivity and reducing the overall costs of mobility. The company’s deep insights, captured across the world’s largest retained pool of drivers, also underpins the annual Internal Revenue Service (IRS) business mileage standard, the amount an individual can deduct for business vehicle expenses. For more information please visit www.motus.com or connect with us on Twitter, Facebook, Instagram or LinkedIn.