Crafting an effective EV fleet driver reimbursement policy
April 25, 2024
As we navigate the evolving landscape of electric vehicles (EVs), the importance of a well-thought-out driver reimbursement policy cannot be overstated. Harnessing the power of vehicle connectivity and carefully selecting data collection methods enables a wealth of information from diverse sources. This approach ensures that the EV reimbursement process is not only fair and efficient but also rich in insights to improve EV performance.
How does fleet vehicle reimbursement work?
The primary goal of vehicle reimbursement is to ease the financial burden on employees resulting from work-related vehicle use. Expenses may include items such as fuel, electricity, maintenance, and other relevant purchases.
Driver policy: Three common reimbursement methods
- Stipend: employees are given a fixed sum paid regularly (often monthly or per pay period) in addition to their standard wage or salary.
- Mileage-based: employees are compensated based on the distance they've traveled for work at a set rate per mile/kilometer.
- Energy-based: employees are compensated based on driver energy-use data.
EV driver reimbursement
EV driver reimbursement ensures employees are compensated for the electricity used to charge their EVs at home or in public for work-related activities. As the adoption of EVs increases, understanding and implementing effective EV driver reimbursement policies will become increasingly important for businesses.
There are two primary scenarios to consider:
- Home energy reimbursement: Compensating employees for the additional electricity consumed at home to charge their company assigned or personal EVs for business use.
- Public charging reimbursement: For cases where a fleet does not already provide a public charging card or payment solution, employees may also need to be reimbursed for out-of-pocket expenses to recharging their vehicles at public charging stations during work-related travel.
Approaches to obtaining EV driver reimbursement data
There are many approaches to obtaining EV driver reimbursement data. While each approach has its merits, we recommend a blended approach which uses multiple data sources for a richer view. This not only enables a seamless driver reimbursement process but also provides more meaningful insights to monitor EV performance.
- Smart Chargers
Smart chargers do more than just power up your fleet; they serve as an important data source to enable precise tracking of electricity consumption per vehicle. By capturing exact charging amounts, smart chargers offer insights into usage patterns to help optimize charging schedules and reduce overall expenses. Leveraging the capabilities of smart chargers can help streamline the driver reimbursement processes. - Vehicle Connectivity
In addition to charger data, vehicle connectivity unlocks the ability to track where and when charging events occur (i.e. home versus public), as well as the amount of electricity transferred to the vehicle. By using telematics to compare the location of charging events with the driver’s home address, we can discern which charging sessions qualify for reimbursement. This process, rooted in simplicity and accuracy, ensures drivers are compensated fairly for their home charging costs. - A blended approach: The benefits of using multiple data sources
While it might be tempting to base reimbursement solutions solely on charger data or solely on vehicle connectivity data, embracing both charger and vehicle data presents a richer view. This dual-data approach offers insights into vehicle utilization, comprehensive charging behaviors, and vehicle performance metrics such as driving efficiency and range. Such depth of information not only enhances the reimbursement process but also provides valuable data on EV fleet performance. It's an approach that not only looks at the present but also prepares organizations for future challenges and opportunities in EV management.
Get started on your fleet reimbursement policy today
Ready to take the first step towards crafting your EV fleet driver reimbursement policy? Discover more about the Arc by Element™ end-to-end electric vehicle offering or get in touch with us today.
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