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4850 E. Street Road, Suite 200,Trevose, PA 19053

Today more than ever, the fleet world operates under pressure from seniormanagement to cut expenses. Fortunately that’s just what CEI has beenhelping fleets accomplish since 1983. In fact, over the years we’ve savedfleets hundreds of millions dollars, one fleet at a time, by reducing their net costof accidents.

How do we do it? In these six ways:• Reducing repair costs• Reducing replacement vehicle rental expenses• Increasing accident loss recoveries• Preventing accidents• Reducing liability, and• Saving staff time

Reducing Repair CostsCEI reduces collision average fleet repair costs by 8 percent a year. For fleetswith a 25% accident rate, that could mean savings of as much as $50,000 forevery 1,000 vehicles.

Our secret? An expert Quality Control department that includes 20 licensedphysical damaged appraisers. These are experienced experts in collision repair,

who have had successful careers asbody shop technicians, estimators,and managers or insurance industryappraisers before joining CEI. Theyknow every step required to getaccident-damaged vehicles safely andexpeditiously back on the road.

They know when parts can berepaired instead of replaced, and whenan OEM part can be replaced with aless expensive after-market or used

part. They know when two or more repairs can be done with just one removalstep, to save redundant labor charges. They know when to use less expensivepaintless dent repair rather than traditional methods. Finally, they know when arepair can be postponed without affecting driving safety of the vehicle.

Maximum Fleet Savings

W H I T E PA P E R

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All savings are documented, line item by line item, in every claim file. Thisinformation is available to our fleet customers via our ClaimsLink™ ExpressLane application. So, customers always know how much CEI has saved on arepair and how it was accomplished.

Reducing Rental ExpensesAnother often-missed savings opportunity is money spent on replacement rentalvehicles. At roughly $40 a day, the difference between a 10-day repair cycle time

and 12 days is $80. Spread out over 250 repairs a year, typical for a 1,000-vheicle fleet, the total rental expensecan exceed $20,000. When those extradays are due to a complex repair, thecost is justified; however, when it’s dueto needless delays by the repair shop orby a driver who doesn’t pick up his orher repaired vehicle within 24 hours ofa completed repair, it’s an avoidableexpense.

CEI reduces avoidable rental costs in two ways: first, we monitor every repair ona daily basis to assure that shops keep to their schedules, next, we notify driversand fleet managers of both the expected and actual completion date of a repair.

Increased loss recoveriesIt takes time and effort, but effective recovery of repair and other relatedexpenses from third-party drivers significantly reduces the net cost of fleetaccidents. Fleets that collect every dollar they’re due from accidents caused bynon-fleet drivers can offset repair expenses by as much as 25%, according to CEIstatistics. For a 1,000-vehicle fleet with a 25% annual accident rate, that canmean some $150,000 in recovered funds.

The CEI Loss Recovery team, comprising some 20 subrogation professionals, arethe industry’s best at loss recovery, averaging 25% of all the fleet accident claimsthey handle. Better yet, they also pursue every opportunity to recover the costsof loss of use and diminished value. Their record speaks for itself: on average,they recover 95% of the funds they pursue in less than 60 days after launchingtheir demand.

4850 E. Street Road, Suite 200,Trevose, PA 19053

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Preventing AccidentsOf course, the most dramatic savings in accident costs is to prevent them in thefirst place. CEI has helped fleets reduce their annual accident rates by 20 to 40%through its exclusive DriverCare™ Risk Manager application.Consider that by reducing a 1,000 vehicle fleet’s accident rate from25% to 18% — a 30% reduction – annual savings from avoidedrepair expense exceed $175,000.

DriverCare has helped scores of fleets achieve similar results. Theapplication sorts drivers into ascending levels of risk categories byanalyzing multiple data points, including accident history andMVR records of traffic violations. It even revises their rankings asnew events occur. Fleet managers always know who are their high-risk drivers and can take immediate corrective measures. Theserange from the assignment of required online and behind the wheeldriver safety lessons to a restriction of driving privileges or, inextreme cases, termination.

Experts say that driver behavior is responsible for 90% of allaccidents, but that performance improves when drivers know that they are beingmonitored. CEI’s program provides the regimen that changes driver behavior.

Reduced liabilityThe cost of a highway accident soars when a fleet driver is responsible for seriousinjury or fatality: court settlements and judgments have been known to totalmillions of dollars. The trigger is evidence of “negligent entrustment,” a fleetsponsor’s failure to keep high-risk drivers out of fleet vehicles. CEI’s DriverCareRisk Manager application reduces fleets’ liability exposure by helping themidentify high-risk drivers and documenting every intervention to improve theirdriving behavior and sanction unsafe driving.

Saving staff timeOver the last 10 years, many fleet departments have suffered cuts in manpower.As a result, they’ve been left with fewer people to handle all the tasks necessaryto running a fleet, from acquisition and maintenance to managing accidentrepairs and pursuing loss recoveries. Not surprisingly, opportunities for costsavings have been forsaken in order to get everything done.

4850 E. Street Road, Suite 200,Trevose, PA 19053

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The dollar value of the added efficiency can be hard to quantify, but fleets acrossthe U.S.A and Canada have acknowledged the benefit that partnering with CEIhas created. Here’s what just three of them had to say:

“My schedule has been dramatically freed up because I am nolonger following up on the status of my vehicles at repair shops. I used to allocate at least one hour per day to manage the status ofthe equipment. My time has been freed up to work on more criticalissues while CEI is managing my repairs and my downtime.”

“Before CEI, we relied on our own staff to find a local shop tomanage repairs on our vehicles. We never knew if they located a quality shop or if it was the buddy of somebody’s buddy whoworked out of his garage. When we were lucky enough to obtainan estimate in a reasonable amount of time, [and] we [often]rubber stamped it to get the work done. We didn’t really know if someone wrote for a new transmission when we only needed abumper because we were too overwhelmed to implement checksand balances so as a result, we had zero oversight.

“Today, we know our repairs are being done in a reliable shopand only necessary repairs are written. We also know that theCEI Staff Appraisers will audit for irregularities and will bringcost savings.”

“It is not often that a vendor comes in here and makes big promises and exceeds them all… Our subrogation recoveries aresignificantly higher with CEI. We managed the process in-housewith less than adequate results. Additionally, I believe we havesaved at least $100,000 in labor costs during the past year since we have reallocated our staffing.”

ConclusionFleet vendors survive only by proving their value. For more than 30 years, CEIhas proven that it can help fleets save substantial amounts of money bypreventing accidents and managing the responses to those that still occur. Forjust one fleet of more than 1,000 vehicles, we helped reduce its net cost ofaccidents by 36% over seven years. To find out how much CEI can save yourfleet you, call us, toll-free, at 1-877-234-2497.

4850 E. Street Road, Suite 200,Trevose, PA 19053

SALES

Kathi Croze918-296-3298

Luann Dunkerley215-485-4275

Mike Kotula404-264-9479

Pete Mitchell215-485-4315

Sean O’Malley612-254-5544

DIRECTOR OF SALESSUPPORT

Ken Latzko215-485-4245

EDITOR

Mark Boada215-485-4241