Grey fleet – employees using their own vehicles for business journeys – remains one of the least visible but most costly areas of business travel. With increasing pressure on organisations to cut costs, meet compliance obligations, and reduce carbon emissions, grey fleet policies are under the spotlight once again.
Here are 10 key considerations to help you assess whether your grey fleet policy is still fit for purpose.
1. LEGAL OBLIGATION
Employers have a legal duty of care to ensure any vehicle used for company business (regardless of ownership) is roadworthy, taxed, MOT’d, and insured. Failure to comply can expose organisations to liability if an accident occurs.
2. INSURANCE GAPS
Business-use insurance is not automatically included in most standard car policies. While it is the driver’s responsibility to secure the right cover, employers should check both the certificate and the policy to confirm business travel is covered.
3. THE SIZE OF THE GREY FLEET
The UK grey fleet is vast. The BVRLA estimates there are 14 million privately owned vehicles on the road that are used for business travel. Despite this, regulation is minimal, and many organisations underestimate the risks involved.
4. THE MILEAGE PROBLEM
Grey fleet drivers travel an estimated 12 billion business miles annually. Under HMRC’s Approved Mileage Allowance Payments (AMAPs), employers reimburse at 45p per mile for the first 10,000 miles, and 25p thereafter. These costs quickly add up and can outstrip the expense of alternative travel options.
5. AN AGEING FLEET
According to the BVRLA the average grey fleet car is around 8.1 years old – significantly older than a leased or rental vehicle. Older vehicles are not only less safe but also higher emitters, raising concerns for organisations with net zero or ESG targets.
6. COUNTING THE COST
Employers are spending around £5.5 billion a year* on grey fleet highlighting the need to address the issue and find ways to reduce grey fleet costs.
7. MILEAGE CLAIMS & RISK OF FRAUD
Mileage reimbursement rates for grey fleet are often higher than alternative modes of travel. Without a robust auditing process, claims can be overestimated or exaggerated, leading to financial loss.
8. ENVIRONMENTAL IMPACT
Grey fleet vehicles contribute disproportionately to corporate CO2 emissions. Many organisations now recognise that tackling grey fleet is an essential part of achieving sustainability goals and demonstrating environmental responsibility.
9. SHIFTING PERCEPTIONS
Driving should not always be the default. Consider alternatives such as:
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Video or telephone conferencing
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Pool cars or car clubs
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Short-term rental
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Leasing schemes
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Public transport
Embedding these options into travel policies reduces costs and supports sustainability.
10. MANAGE GREY FLEET AS IF IT’S COMPANY OWNED
Effective grey fleet management requires data, checks, and oversight. Employers should record and monitor:
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Vehicle registration and age
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MOT, tax, and insurance details
Treating grey fleet vehicles with the same diligence as company-owned cars ensures compliance and provides a defensible audit trail.
How DAVIS Grey Fleet Helps
DAVIS Grey Fleet software automates compliance by storing all relevant driver and vehicle data, carrying out regular checks, and reducing the need for manual chasing. The system minimises administration, ensures duty of care, and helps organisations cut costs and risks associated with unmanaged grey fleet.
Next step:
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Book a short demo or get in touch to discuss: sales@licencecheck.co.uk
