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Roadside Assistance Plans are Worth the Money

Last year a company we had worked with for quite some time decided to trim the budget and cut expenses, much further than they had the year before. While some of the expenses that were cut didn’t seem to hurt too much, there was one expense that was cut that ultimately cost them dearly, virtually wiping out the savings that should have been realized in 2011.

The company has a number of commercial vehicles that are used on a daily basis for deliveries as well as client appointments. In 2010, there was only one minor incident in which the company had to use their roadside assistance coverage; therefore, they decided to take a risk, cutting the plan in 2011.

Unfortunately, they did not have the same luck that year. In February, one of their employees experienced a flat tire while out making an important delivery. Their client had an urgent need for that delivery, and without it, they couldn’t deliver on their own promise to a new and important customer.

Without the proper tools to change the flat quickly, the driver had to call for help and it took three hours for him to get back on the road. They lost the client and his business, which had been a steady $20,000 per year profit to the company over the past few years.

Just a month later, another one of their company vehicles had a breakdown on the highway on the way at a location over 100 miles from the office. Without commercial roadside assistance coverage, the expense of towing had to be paid out of pocket, turning the bad experience for the employee into something worse.

Several sales people for the company frequently travel for business, and instead of their roadside assistance plan taking care of trip planning, maps and directions, an administrative assistant had to do the research. Her time cost the company more than the annual cost of coverage. In addition, the travel discounts the employees would have received were no longer in affect.

It didn’t take long for the business owner to realize that cutting the expense of their commercial roadside assistance plan was not the best idea. After just six months without it, he came to the conclusion that many of us already have. Protecting your vehicles and the employees who drive them is imperative for the success of the company, and a commercial roadside assistance plan is an invaluable resource.

Commercial Roadside Assistance: Who needs it?

When you think of auto clubs or roadside assistance plans you probably think of coverage for your family during summer road trips or for a commute to school or to work; however, these same programs that can be such a lifesaver are also available for vehicles that don’t fall into the private passenger category.

Any business that uses a vehicle for any work activity should be covered through a roadside assistance plan, including business-owned vehicles such as commercial, fleet or construction vehicles.

Just as you don’t want your family member’s safety jeopardized, you shouldn’t put your company or its employees’ lives at risk while using a company vehicle.

If you hadn’t realized roadside assistance is an option for your business-owned vehicles, it is! You should consider enrolling in a commercial roadside assistance program if:

  • Your business uses vehicles to pick up or deliver goods or services. Vehicles might include delivery trucks or vans, maintenance vehicles, or any vehicle used to carry business equipment.
  • Your business employees drivers to operate a fleet of vehicles that provide transportation services which can include, transportation from a nursing home to a hospital or rehab facility, taxicabs, or buses used for transporting students or senior citizens, etc.
  • Your business requires the use of construction vehicles.
  • Your business offers rental vehicles.

Any business that uses a vehicle for business activities can benefit from a commercial roadside assistance plan.

Why it can be even more important for commercial vehicles to be covered

As both construction vehicles and vehicles that have been modified for deliveries or other services, they are more likely to have breakdowns compared to the average private passenger car. While the costs of roadside assistance can be higher, it will also save you and your company more money over the long haul.

If a company vehicle breaks down, in addition to the annoying frustration and inconvenience to yourself and possibly your customer, the loss of business will ultimately cost the company more if you’re not able to get the vehicle back on the road as quickly as possible.

The cost of calling a tow truck or a mechanic out to a stranded driver is typically far more than the cost of a roadside assistance program, and by having this coverage in place you’ll be providing peace of mind to anyone who drives a vehicle for your company.