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7 Top Practices for Fleet Licencing and Compliance

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7 Top Practices for Fleet Licencing and Compliance

Read time 14 min read

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The world of fleet licencing and compliance can be complicated as it’s constantly evolving. It’s like marketing whose dynamics keep changing. Most fleets comprise vans, small trucks and other vehicles used to transport goods or people. Fortunately, you can follow many best practices to ensure you are always in compliance with the law.

To help you stay ahead of the curve, the following piece covers 7 top practices for fleet licencing and compliance. But before that, let’s look at the fleet licensing and compliance benefits.

The benefits of fleet licensing and compliance

There are several benefits to having a fleet license and ensuring your vehicles comply with all the necessary regulations. Here are some of the benefits:

  • It helps you avoid costly fines and penalties.
  • Assists you in staying organized and ensuring that your vehicles are up to date with the latest safety standards.
  • Peace of mind knowing that your vehicles are operating safely and legally.
  • Helps you build trust with your customers and employees. They’ll know that you’re committed to following the rules and keeping them safe.

You can always improve fleet maintenance with a fleet telematics system. According to Teletrac Navman, 86% of fleets currently use telematics. With it, you can always receive real-time data, helping you respond quickly to emergencies. It also increases the safety of your fleet.

The top 7 practices for fleet licensing and compliance

1. Keep track of your vehicles

If you have a company that owns multiple vehicles, it is important to keep track of them. This can be done with a vehicle tracking system.

A vehicle tracking system uses GPS to track the location of a vehicle. It can also track speed, mileage, and other data. This data can be used to improve fleet management.

There are many different types of vehicle tracking systems. Some are simple and only track location. Others are more complex and can track a variety of data points.

Choosing the right vehicle tracking system depends on your needs. Consider the type of data you want to collect, the size of your fleet, and your budget.

A vehicle tracking system is a good investment if you want to improve your fleet management. It can help you save money and increase efficiency.

2. Comply with all local rules and regulations regarding fleet operations.

DOT compliance is a term that describes compliance with all local, state, and federal rules and regulations. This includes compliance with speed limits, hours of operation, and parking restrictions. It is required for all commercial fleets in the United States.

You have to know that DOT (department of transport) compliance is a complex and ever-changing area of law.  You should monitor the number of hours your drivers spend on the road. Overworking the driver might lead to fatigue, and here you risk the lives of several people.

It’s important to consult with an experienced attorney specializing in this area.  An experienced attorney can help you navigate the complex web of laws and regulations and ensure that your fleet complies with all applicable laws.

3. Maintain up-to-date records.

Maintaining accurate and up-to-date records is essential for compliance. Keep track of all changes to your fleet, including new additions, deletions, and changes in vehicle details.

Maintenance records help you track the work a particular vehicle has undertaken and whatever they need in future.  You get to ensure that each vehicle is in great shape before releasing it on a particular errand.

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Records enable you to release only road-worthy vehicles. Your drivers need to fill out the driver vehicle inspection reports (DVIRs) before and after every trip. Or rather, during the beginning and the end of each work day.

The DVIR covers everything that enables safe driving, including

  • Brake systems
  • Steering systems,
  • Lights
  • Rear and side view mirrors
  • Safety and emergency equipment,
  • Fifth wheels.

Drivers also need to record the miles driven, the fuel purchased and the purchase location.

Additionally, constantly update Compliance, safety, and accountability (CSA) scores. The scores range from (0 to 100), with 0 being the best and 100 the worst.

The scores are based on the following categories:

  • Driver fitness,
  • Vehicle maintenance
  • Unsafe driving
  • Compliance with the required hours of service
  • Frequency of collisions
  • Controlled substance or alcohol.

If your driver and the vehicle fall outside the acceptable CSA score, they can be taken out of service. Your business could be penalized as well.  Being on the right side of the law is great if you want to scale your business.

4. Ensure that vehicles are properly insured.

It’s important to ensure that all vehicles are properly insured. This includes both personal and business vehicles. Nobody knows when an accident will occur. Thus, without insurance, you could be liable for any damages, which could cost you a lot of money.

You should be aware of different types of insurance. These include:

  • Liability insurance will cover any damages you cause to another person or their property.
  • Collision insurance will cover any damages that your vehicle sustains in an accident.
  • Comprehensive insurance will cover any damages to your vehicle from factors other than an accident, such as weather or theft.

Make sure to speak with your insurance agent to determine what coverage is right for you. It is also essential to review your policy regularly to ensure your fleet is appropriately covered.

5. Have access to a detailed database.

You need to create a detailed database. Alternatively, since it’s a lot of work, you can hire a fleet organization that has the database in place. The database needs to have:

  • The information on each number plate
  • The plate expiry
  • The driver’s name is attached to the vehicle
  • The vehicle’s weight
  • Territory registration identification

A detailed database is a great way to keep track of all the vehicles plus the licensing requirements in your fleet. Since each state has its regulations, you will familiarize yourself with the laws in different areas where your fleet operates.

6. Conduct regular audit

Regular audits of your fleet will help you identify any areas of non-compliance. Audits should be conducted at least annually and more frequently if your fleet undergoes significant changes.

An essential part of any commercial fleet management program is ongoing auditing to ensure compliance with program guidelines. Regular auditing protects your organization from legal and financial risks and helps ensure the safety of your fleet and the people who operate it.

There are many different ways to audit a fleet, but some of the most common methods include vehicle inspections, maintenance records checks, and driver history checks. Depending on the size and scope of your fleet, you may need to hire a professional fleet management company to help you with your auditing needs.

You can also use fleet management software to help you ease the work. Find out more here.

Also, conduct a risk assessment to ensure all your drivers are fit for work. If they aren’t, see how you can help them. They should annually do eye tests and general health checks.

Regardless of how you choose to do it, regular auditing of your fleet is essential to the success of your fleet management program.

Frequently asked questions FAQs

Here are frequently asked questions concerning fleet license and compliance.

1. How do you get started with fleet licencing and compliance?

First, you’ll need to ensure that all your vehicles are registered and licensed. You’ll also need to ensure that your drivers are properly licensed and insured. Then, you’ll need to develop a compliance plan outlining how to ensure that your fleet meets all applicable regulations.

Once that is in place, you’ll be ready to start operating your fleet. Just remember to stay compliant, and you’ll be fine.

2. How can I improve my fleet management?

There are many ways to improve fleet management. Some steps may be more effective than others, depending on the specific needs of your business. However, a few key steps businesses should take to improve their fleet management:

  • Review your current fleet management system.
  • Identify areas for improvement.
  • Implement changes and new processes.
  • Evaluate the results of your changes.

3. What are the key elements of effective fleet management?

The fleet management system is a critical part of any fleet operation. It is responsible for tracking and managing the fleet of vehicles, and it plays a vital role in ensuring the safety and efficiency of the fleet.

Several key elements make up the fleet management system, each essential to the system’s proper functioning.

These are:

  • GPS tracking system Allows the fleet manager to track the location of the vehicles at all times.
  • Vehicle maintenance system. Ensures that the vehicles are properly maintained and that any repairs are made on time.
  • Driver management system. It ensures that the drivers are properly trained and follow all safety protocols.

Parting shot

Keeping track of each vehicle, tag, and plate can be a lot. Many businesses rely on fleet vehicles to keep their operations running smoothly. But managing a fleet can be a challenge, especially when it comes to licensing and compliance.

By following these practices, you can avoid many common pitfalls that can lead to problems down the road.

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Daniel Urmann

Author Bio:

Daniel Urmann is the co-founder of Diib.com. Over the past 17 years Daniel has helped thousands of business grow online through SEO, social media, and paid advertising. Today, Diib helps over 150,000 business globally grow online with their SaaS offerings. Daniel’s interest include SMB analytics, big data, predictive analytics, enterprise and SMB search engine optimization (SEO), CRO optimization, social media advertising, A/B testing, programatic and geo-targeting, PPC, and e-commerce. He holds a Master of Business Administration (MBA) focused in Finance and E-commerce from Cornell University – S.C. Johnson Graduate School of Management.

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