Introduction: What Is Grey Fleet and Why It Matters Now

In 2025, company fleets look very different from even a few years ago. Hybrid working, cost-cutting measures, and changing employee expectations mean more staff are using their own vehicles for business travel — a setup known as grey fleet.

On the surface, it seems simple: employees use their car, claim mileage, job done.
But beneath that convenience is a serious compliance and safety risk that can cost your organisation money, reputation, and even legal standing if not managed properly.

If your business hasn’t reviewed its grey fleet policy recently — or worse, doesn’t have one — now is the time to act.

The Hidden Costs of Grey Fleet

Grey fleet can drain resources in ways you may not see until it’s too late. Here’s why it’s more than just a few mileage claims:

1. Financial Risks

• Mileage expenses can spiral without accurate tracking.
• Older, less efficient vehicles can increase fuel and maintenance costs.
• Insurance claims may be refused if the driver isn’t properly covered for business use — leaving your organisation exposed.

2. Legal Liabilities

Under the Health and Safety at Work Act and Duty of Care legislation, employers are responsible for ensuring all vehicles used for work purposes are safe, roadworthy, and insured.
If an employee drives their own car for business and has an accident, you could still be held liable if they were uninsured or driving an unsafe vehicle.

3. Reputational Damage

One incident involving an unsafe or uninsured vehicle can quickly become public — damaging trust with customers, partners, and employees.

Grey Fleet Compliance Essentials in 2025

If your staff drive their own vehicles for business purposes, you need a clear grey fleet management process. Key elements include:

• Insurance Checks – Confirm all grey fleet drivers have business use cover, not just social/commuting.
• Licence Verification – Regular driver licence checks to identify expired or revoked licences.
• MOT & Servicing Records – Ensure vehicles are roadworthy and maintained according to manufacturer guidelines.
• Mileage & Expense Tracking – Monitor journeys for accuracy, cost control, and environmental impact.
• Clear Policy Communication – Make sure all employees understand their responsibilities before they drive for work.

Strategies to Reduce Grey Fleet Risk

A strong grey fleet policy isn’t just about ticking compliance boxes — it’s about making smarter, safer, and more sustainable decisions. Here’s how to get started:

1. Audit Your Grey Fleet

Gather data on who’s driving, what they’re driving, and how often. Many organisations underestimate the size of their grey fleet until they start tracking it.

2. Provide Alternatives

For frequent business travel, consider company cars, pool cars, or short-term hire vehicles — options that are easier to manage and insure.

3. Automate Compliance Checks

Manual processes are time-consuming and prone to error. Licence and insurance checks can be automated to save admin time and reduce human error.

4. Align with Sustainability Goals

Older grey fleet vehicles are often less fuel-efficient and higher in emissions. Introducing low-emission alternatives supports both compliance and ESG targets.

How Midas FMS Helps You Stay Compliant

Managing grey fleet doesn’t need to be complicated — but it does need to be consistent.
With Midas Licence Checking, you can:

• Run regular driver licence checks automatically
• Get alerts when compliance documents expire
• Generate reports for audits or management reviews

Our tools help you keep grey fleet drivers safe, legal, and accountable — while reducing admin for your team.

Conclusion: Don’t Wait for a Problem to Happen

Grey fleet is one of the fastest growing and most overlooked risks in fleet management.
The good news? With the right processes and tools, you can stay ahead of compliance requirements, control costs, and keep your people safe on the road.

📞 Ready to take control of your grey fleet? Contact Midas FMS today for a free demo today.