For any business operating fleets of HGVs, vans or company cars, speeding fines can be a serious concern. Out of all HGVs recorded on the road in 2023, 37% were found to be speeding on residential roads and 40% broke the speed limit on single carriageways. Considering 56% of fatal collisions are caused by speeding, these statistics are concerning for companies and employees alike. So what are the consequences of employee speeding? And who’s responsible for paying company car speeding fines?

The legal consequences of speeding in a commercial vehicle

Every 1% increase in speed increases the chances of an accident by 2%. Accidents can cause irreparable damage to fleet vehicles, incur major repair and towing costs, and - in the worst cases - injure or kill someone involved. These are the tangible consequences of speeding; more frequently, lawbreaking drivers will encounter legal consequences instead. These may involve fines, points on a license and skyrocketing insurance premiums.

Who pays company car speeding fines?

The driver of the vehicle is liable to pay speeding fines. Speeding penalties are calculated on a case-by-case basis depending on how fast the driver was going, what kind of road they were on, and whether they plead guilty to the offence in court. The driver may be faced with more than one consequence, including:

A fine: In the UK, speeding fines range from a minimum of £100 to a maximum of £2,500. The fine is calculated as a percentage of the driver’s weekly income, capped at £1,000 if the offence wasn’t committed on a motorway, and £2,500 if it was.

Points on the driver’s license: ‘Points’ refers to penalty points. They act as a mark against a driving license, and their presence on a driver’s record will affect your insurance premium as a company.

Disqualification from driving: Your driver may be disqualified from driving entirely or be placed on a driving ban, which typically lasts between 6 months and 2 years, after which time they’ll need to reapply for their licence before driving again.

Who’s liable to pay HGV speeding fines?

As with company car speeding fines, the employee who was driving the HGV at the time of the offence will be required to pay for any costs related to it. The same potential consequences also apply depending on the circumstances surrounding the incident.

Can companies be liable for accidents, injuries and fatalities?

Legal consequences are a deterrent to decrease the offending rate. When you manage a fleet, you’re expected to put reasonable care into preventing offences - and injuries - from happening. If a court finds that you didn’t maintain your vehicles correctly, failed to vet your drivers or incentivised speeding with tight deadlines and time pressure, your company may be found liable for accidents and injuries caused by your drivers.

The financial impact of HGV speeding penalties

While you won’t be required to pay a fine on behalf of a driver, your company can still suffer financial consequences for instances of speeding. From paying for vehicle repairs to facing a higher insurance premium when your term ends, here are a few costs you’ll have to pay if your drivers break the law:

The costs of speeding

Insurance markup: Fleet insurance can be expensive, and it’s even pricier when your insurance company doesn’t trust your drivers. If your employees have speeding on their records, the cost of your insurance is likely to rise.

Vehicle maintenance: Engines, tyres, axles and brakes can all be worn down by consistently high speeds. When your drivers make a habit of speeding, you’ll be paying out for maintenance and repairs far more frequently.

Fuel consumption: The most fuel-efficient speed is 50MPH. Exceeding this - even within the speed limit - burns considerably more fuel than necessary. If your drivers are exceeding the national speed limit (NSL), your diesel premiums could be a lot higher than they should be.

The costs of accidents

Tow costs: After an accident, you’ll need to remove the damaged vehicle from the road. The price of a tow may not be significant for cars and vans, but moving a HGV can have a large impact on your finances.

Vehicle repairs: The cost of vehicle repairs can be incredibly high. If you claim them on your insurance, you can expect your fleet premium to rise as a result.

Vehicle replacement: If the vehicle can’t be repaired after an accident, you’ll need to replace it. You won’t be able to sell the wrecked vehicle to offset the cost, and your company will need to pay full price for a replacement.

How can you prevent employees from speeding in a company vehicle?

While many factors that influence driver behaviour may be out of your control - there are ways you can help prevent employees from speeding in company vehicles. These measures include better education, route planning, longer deadlines and installing equipment such as dash cams, vehicle trackers and speed limiters. Here are a few ways that you can prevent your drivers from speeding in a commercial vehicle:

Install dash cams

Installing dash cams is one of the best ways to improve driver behaviour. Insurance companies may even reduce a driver’s premium just for having one, showing that insurers have seen a considerable difference in the claim rate when a vehicle has a camera installed. A forward facing camera will help to monitor your driver’s behaviour on the road, while dual facing cameras can alert you to how distracted, frustrated or tired your employee is while driving.  Dash cams also help to support insurance claims, for example if your driver was not at fault in a speeding-related accident.

Track your fleet

Another way for you to monitor the behaviour of your drivers is to track your fleet. With tracking tech installed, your vehicles’ routes, mileage, fuel consumption and journey history will be monitored and made accessible to you through the Kinesis vehicle tracking software. If your drivers are speeding or breaking road laws, fleet tracking will bring it to your attention in real time, helping you to address the issue before it escalates.

Use speed limiters

A speed limiter is a device connected to the engine of a vehicle. The limiter will monitor the speed of the vehicle and restrict acceleration when a predetermined limit is set. This sets a hard limit and prevents exceeding the highest speed restrictions in the UK, but it can’t be used to prevent speeding in residential areas.

Set appropriate deadlines

Time pressure is a common cause of speeding in a company car or HGV. When you set tight deadlines, drivers are unintentionally incentivised to put their foot down whenever the road allows it. You can encourage safe driving by making sure that your drivers have plenty of time to reach their destination.

How can preventing HGV speeding benefit your company?

Commercial vehicle speeding fines aren’t the only problem to solve when your drivers are caught breaking the speed limit. Taking preventative measures can help reduce spending on maintenance and fuel, as well as prevent urgent repairs and towing costs. You shouldn’t stop there, however - if you’ve noticed that your drivers are speeding, it’s possible that there are a few other bad driving habits going on behind the scenes that should also be addressed.