Developing an Effective Policy Guide

Business vehicle program policies establish internal rules and regulations that need to be documented, approved, reviewed, and updated on a regular basis. How current is your organization’s business vehicle policy? Does it exist as a formal document? Do your drivers understand its contents, and are they in compliance?

To avoid misunderstandings with your drivers as well as to be in compliance with important external regulations, take time to ensure that a business vehicle policy guide exists within your organization, and that it is up-to-date, complete, and communicated to employees. Suggestions for developing an effective business vehicle policy guide follow.

First, be aware of alignment. Although numerous vehicle policy guide templates are available, your policy should address your organization's specific needs and be in alignment with relevant internal and external regulations. When creating your policy guide, be sure to review other employee programs to check for internal contradictions or overlapping communications relating to insurance coverage, cell phones, and traffic violations. Also, ensure program compliance with external regulations including ISO 9000, OSHA, JCAHO, HIPAA, and Sarbanes-Oxley.

Second, include an acknowledgement form in your guide. Your employees need to know that it's their responsibility to read, ask questions about, and understand the contents of your company’s business vehicle policy. Place an acknowledgement form requiring employees’ signatures at the beginning of the guide to ensure that employees will not miss it and actually read through it. The acknowledgement should be clear without sounding ominous or threatening. If possible, set time aside during the orientation process for employees to read the guide, and leave time for a question and answer period. Specify the date by which the acknowledgement needs to be signed and to whom it should be returned. Also, require that employees sign the acknowledgement again whenever policy changes are significant enough to justify employee review.

Third, have a clear introduction and purpose. Overall, the introduction of the guide should set the tone for the business vehicle policy guide and show that management stands behind its policies. Use the guide's introduction to integrate the vehicle policy with your company’s mission, values, and beliefs, and explain why the policy is important to your company and its employees. The introduction is also a good place to inform employees regarding any outside organizations which partner with your company in its vehicle program. Additionally, a signed message from a high-level executive highlighting the importance of the program can be beneficial.

Fourth, organize your guide to allow readers to find specific subjects quickly. You don’t want employees spending too much time searching for pertinent information. Structure the contents of your policy guide into sections with clear headings and use short sentences for easy reading. Specific topics that should be addressed in your policy include:

1. Eligibility:  Define who is eligible to participate in the program
2. Expectations:  Explain the expectations of business vehicle program participants
3. Reporting:  Clearly define what information is monitored by the company
4. Procedures:  Define all tracking and review procedures, as well as what to do if an accident occurs
5. Driving Privileges:  Explain notifications of changes in driving privileges
6. Safety:  Address safety considerations and requirements

Fifth, keep the business vehicle policy guide up-to-date. Oftentimes, a policy guide is created and then passed on to new program administrators over the years without any review or update. Establish a documented process to ensure regular review. As part of your policy review process, provide employees an opportunity to give feedback regarding the ease of use and clarity of your policy guide; and evaluate recommended changes. At least on an annual basis, the policy guide should be reviewed and updated. Be careful with policy changes and adjustments.  Again, if changes to the guide are significant, you’ll want drivers to sign new acknowledgements.

Never underestimate the importance of your business vehicle policy guide. Having clear, up-to-date policies can save countless hours that come from employee misunderstandings and may also help your organization avoid legal issues.  Both management and employees benefit from proper attention to business vehicle policy guides.

Understanding engine oil and taking proper care of your vehicle’s engine are paramount to gaining the maximum life from your automobile. Engine oil lubricates, cleans, and cools parts of the engine that are critical to proper operation.

According to the Car Care Council, engine oil consists of various weight mineral or synthetic oils combined with additives for engine protection. Oils come in single or multi-grades and must meet various oil performance standards. The American Petroleum Institute (API) has classifications for oil which are intended to address various engine oil applications. The most recent oil performance designation is ILSAC GF-4. These new oils offer significant performance upgrades and meet new specifications jointly developed by oil and auto industry experts. The oils meeting the new standards provide gasoline-powered car engines with several benefits, including better engine wear protection, a key to longer quality performance.

Oil can become contaminated by dust, metallic shavings, condensation, and antifreeze. Additives break down over time and can also act like contaminants. The Car Care Council recommends that you use the correct oil recommended by your auto’s manufacturer and change your oil and filter every 3,000 miles or three months. The 3,000 mile rule is especially important if you operate your vehicle for multiple short trips, in a lot of stop-and-go driving, in both cold weather and in hot, dusty conditions, for towing trailers, or pulling heavy loads.

When you change the oil in your vehicle, don't forget about the oil filter. The oil filter is made of a high-strength steel housing with various kinds of filtering materials. An anti-drainback valve prevents oil from running out of the filter when the engine is off. The filter cleans out contaminants, letting the oil move freely through the engine. When the oil filter becomes full or “clogged,” the oil and contaminants will flow around the filter right into the engine. Because of the damaging effects of the contaminants, this isn't something you want happening for any length of time.

Use care when disposing of your old oil and filters. The Car Care Council estimates that a single quart of used engine oil has the capacity to pollute 250,000 gallons of ground water; and the oil from just one used oil filter can contaminate 62,000 gallons of ground water. As a result, it's important to put used oil into its original container or a clearly marked plastic container, and dispose of it properly.

Can your auto (or other) financing be affected by whether or not your credit card companies report your credit limit? You bet. 

The New York Times recently reported that many consumers are erroneously given lower credit ratings due to reporting omissions from their credit card companies. When a credit limit is not reported, the credit bureau may substitute the highest known balance reported for that card in its place, making it appear that a consumer has “maxed-out” his/her card, even if he/she is significantly under the spending limit.

A study published last year by three Federal Reserve economists found that the credit score of nearly 9 million Americans was unnecessarily lowered by as much as 50 points, which could add thousands of dollars to their mortgages and other types of financing. 

How does this happen? Oftentimes, credit card companies don’t report credit limits simply because they want to prevent information becoming visible to competitors, who then target their best customers with credit card offers.  Additionally, there is no legal requirement for companies to report credit limits. 

Consumers who hold store-owned cards may be affected in addition to those who use bank distributed cards. The three major credit reporting bureaus – Equifax, Experian, and TransUnion – have acknowledged that they’d prefer that lenders report credit limit data, as would Fair, Issac & Co., whose formulas help compute the credit score (called the FICO score). However, since credit card companies can still choose whether or not to report credit limits, make sure you review your credit report closely before signing any loan documents. The end result may be significant savings.

Source:  The New York Times

As the industry becomes increasingly competitive, automobile insurance providers continue to try to differentiate themselves in the eyes of consumers. Not surprising, insurers are aggressively introducing new programs which provide drivers increased choice, flexibility, and rewards for safe driving.

The rewards for safe driving can be substantial. For example, one automobile insurance provider gives an additional $100 off collision coverage as well as a $100 discount for each year of accident-free driving, up to $500. Additionally, a credit that can be applied to the next renewal premium is given for every six months of safe driving. Some insurers guarantee consistent rates, even if an accident occurs. Others offer car replacement if a new vehicle is totaled in a covered loss.

From a corporate perspective, safe drivers continue to be in high demand. As litigation increases, employers are constantly challenged to effectively identify and address their organization's “high risk” drivers. Research demonstrates that safe driver training and behind-the-wheel courses significantly lower corporate liability exposure and keep employees responsible and safe. As a by product, these safe drivers become eligible for tremendous cost savings on their insurance premiums.

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