A year later, how have income-based speeding penalties affected business fleets?

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The minimum fine for speeding on UK roads is £ 100 fine and three license points are deducted. The fine is usually mailed with photographic evidence and drivers have a set number of days to respond.

If a driver has already been caught exceeding the speed limit or has violated the road traffic regulations, his driver’s license may already contain points. If it gets nine points, drivers will most likely appear in court no matter what speed they were driving when they were caught.

For SMBs in particular, the cost of an off-road driver can severely affect the ability to meet customer needs.

What has changed

The new system of fines came into play on April 24, 2017. Previously, there was a set fine for the amount that was over the limit. The new system calculates a fine based on speed and now income. This stricter enforcement means that offenders can be fined up to 175% of weekly earnings, depending on the severity of the crime. The severity is based on three different bands:

  • Band A – 1-10 km / h over the limit
  • Band B – 11-21 mph over the limit
  • Band C – 21 mph and over the limit

Since Volume C is the worst, it carries the highest fine of around 125-175% of a weekly wage.

Why is it so important to think about speed?

Research by Green Flag has shown that speeding violations have increased by 44% over the past five years. Our own research has shown that something as simple as future clocks has an impact on speed. For example, the streets around Liverpool saw a + 2.2% increase as our clocks went forward.

It may sound like a small number, it’s important to remember that even the slightest increase or decrease can lead to traffic jams, which in turn increases the likelihood of accidents and usually leads to worse driving decisions. It is important to ensure that SMEs have a duty of care towards employees who travel for work.

How does this affect those who use vehicles for business?

The change in how the fines over speeding is calculated has the biggest impact on SMEs, as not only can the fine affect short-term cash flow, but the extra points can also affect overheads.

Penalty points can contribute to increased insurance premiums and in some cases a collection of 12 penalty points can result in disqualification. For businesses that rely on a relatively small fleet of vehicles, such a decision could be enough to destroy the business.

With that in mind, we created a speed calculator based on different professions to see who is worse. This included plumbers, electricians, couriers, maintenance technicians, construction workers, truck drivers, sales agents and landscapers.

Who was hit worst?

With an above-average salary, construction companies are hit hardest by the system of fines. Our calculator estimated a Band C offense could end up costing over £ 1,080. In addition, if a small construction company has to be disqualified for a maximum of 56 days, they could lose 8,075 euros because they can no longer work due to a lack of vehicle.

Bad news for plumbing and electrician companies

Offenders who happen to come from small businesses with a focus on plumbers or electricians are also likely to be hit hard. A BAnd C violation is punished with a fine of more than 910 or 930 euros as well as with several license points. A fine of this amount could prove to be a real hammer blow to the bottom line and seriously disrupt business.

What about companies that have a fleet of drivers?

For larger SMEs that employ fleet drivers such as maintenance technicians and couriers, fines can start as low as £ 200 and go up to £ 940. As mentioned earlier, while the fine goes directly to the driver, the company can also be punished if the insurance premiums for business use increase.

Although larger SMBs obviously have greater cash flow, this is still a hot spot to avoid if a company can stay agile and respond efficiently to customers. Disqualification is also likely to disrupt business operations and in some cases a new driver must be hired while the perpetrator is “incapacitated”.

What can companies do about speeding?

Unfortunately, while constant training and education is the best way to prevent speeding, other measures are often required. Just because a driver isn’t caught doesn’t mean it should be allowed or encouraged. Speed ​​laws not only protect drivers, but also the vehicles themselves.

Speeding accidents are not only traumatic but also extremely costly for the vehicle owner.

Chris McClellan is the CEO of RAM Tracking

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