By RAM Tracking on 26 Nov 2025
By Daniel Briggs, Marketing Director, RAM Tracking
There are around 1.8 million fleet vehicles in the UK. When drivers exceed the speed limit in company vehicles, the cost is much higher than a simple fine.
Speeding affects safety, costs, compliance, and company reputation in ways many fleet managers don't fully appreciate.
This article explains who is responsible for speeding in a company vehicle and what businesses can do to reduce the risks and protect their drivers.
A company car is any vehicle provided by an employer for business use, whether fully owned, leased, or part of a salary sacrifice scheme. This includes vans, trucks, and passenger vehicles used by employees for work-related travel.
If your business name appears on the vehicle or it's registered to your company, it's considered a company car for legal and insurance purposes.
When a driver is caught speeding in a company vehicle, the registered keeper (usually the employer) receives a Notice of Intended Prosecution (NIP). The company must then identify the driver within 28 days or face penalties themselves.
The driver faces:
Penalty points on their licence (typically 3-6 points)
Fines starting at £100 and increasing based on severity
Potential driving ban for serious or repeat offences
Mandatory speed awareness courses in some cases
Many drivers mistakenly believe company car speeding fines are less severe. This isn't true. The penalties are identical to private vehicle offences.
Speeding laws exist to protect everyone on the road. The faster a vehicle travels, the less time a driver has to react to hazards and the greater the impact force in a collision.
Poor driver behaviour puts everyone at risk. It endangers the driver themselves, any passengers in the vehicle, and other road users including cyclists and motorcyclists who are particularly vulnerable. Pedestrians in built-up areas face heightened danger, and behind every serious injury or fatality are families and communities left dealing with devastating consequences that could have been prevented.
When your employees drive company vehicles, you're responsible for ensuring they operate safely and within legal limits.
Speeding accelerates wear and tear on vehicles, leading to:
Increased fuel consumption (up to 30% higher at excessive speeds)
Faster brake and tyre degradation
Greater strain on engines and transmission systems
Higher maintenance and replacement costs
Reduced vehicle lifespan
Collision repairs following speeding-related incidents can cost thousands of pounds, plus the expense of replacement vehicles while repairs are completed. These costs directly impact your bottom line.
Speeding violations affect your fleet insurance in multiple ways:
Premium increases at renewal
Higher excess charges on future claims
Reduced no-claims discounts for the business
Difficulty finding competitive quotes with multiple violations
Potential policy cancellation for serious or repeated offences
Insurance providers track claims data and driving records. Even a single speeding ticket can trigger premium increases that cost your business significantly over time.
Company vehicles are mobile advertisements. When your logo-branded van speeds through a residential area or drives dangerously, potential customers notice.
Your brand reputation takes a hit every time someone witnesses dangerous driving from your vehicles. It suggests your company doesn't prioritise safety, undermines trust with existing and potential customers, and generates complaints on social media and review sites. Worst of all, it directly contradicts any safety or quality messaging in your marketing as actions speak louder than carefully crafted brand promises.
Professional driving standards strengthen your brand. Poor driving behaviours undermine it.
Legally, the driver who committed the offence is responsible and receives the penalty points and fine.
However, employers share responsibility for:
Ensuring vehicles are roadworthy and properly maintained
Providing adequate driver training and safety policies
Monitoring driver behaviour and addressing concerns
Creating a culture that prioritises safe driving over speed
If an employer fails to meet their duty of care obligations, they may face corporate liability. This is particularly relevant if unsafe driving practices are encouraged or tolerated to meet unrealistic deadlines.
UK employers have legal obligations under health and safety legislation to manage work-related road risks.
Your responsibilities include:
Conducting risk assessments for work-related driving
Ensuring drivers hold valid licences with acceptable driving records
Providing vehicles that are safe and properly maintained
Establishing clear policies on speed limits and safe driving
Offering driver training and refresher courses where needed
Monitoring driver behaviour and addressing unsafe practices
Investigating incidents and implementing improvements
Failure to meet these obligations can result in prosecution, fines, and reputational damage. In serious cases, company directors can face personal liability.
Taking proactive steps to prevent speeding protects your drivers, reduces costs, and demonstrates your commitment to safety. Modern fleet technology makes it easier than ever to identify issues before they become serious incidents.
GPS tracking and dash cams provide complete visibility of how your vehicles are being driven. They deter unsafe behaviours, provide evidence in disputes, and help you coach drivers toward better habits.
Key benefits include:
Real-time monitoring of vehicle speeds and locations
Instant notifications when speed limits are exceeded
Video evidence to resolve insurance claims and disputes
Protection against false claims and fraudulent accusations
Driver behaviour reports to identify training needs
Reduced insurance premiums with telematics-based policies
Improved compliance with health and safety obligations
Technology works best when paired with smart policies. Your performance data becomes the foundation for regular driver reviews and focused training that actually improves habits.
You can create realistic schedules that give drivers proper time to complete routes without the pressure to speed. Most importantly, you're able to recognise and reward safe driving, building a culture where your team drives responsibly because it's become the standard, not just because they know they're being monitored.
Speeding in company cars creates serious risks for safety, costs, reputation, and compliance. The good news? You can prevent these issues with the right technology and policies.
At RAM Tracking, we provide industry-leading fleet management solutions, giving your full visibility of your drivers and their vehicles. Our solutions help you reduce speeding incidents, protect your drivers, and lower operational costs while staying fully compliant with UK regulations.
Ready to take control of your fleet safety? Contact us for your free no-obligation quote today and discover how much you could save with RAM Tracking.
Daniel Briggs is the Marketing Director at RAM Tracking, with almost 3 years of experience in the Field Service SaaS space and a deep understanding of what fleet managers need for both fleet tracking and job management.
His expertise spans fleet optimisation, driver behaviour management, and technology solutions that deliver measurable business results.
Yes, employers can dismiss employees for speeding in company vehicles, particularly if it's a repeated offence or results in a driving ban. Speeding may constitute gross misconduct depending on your employment contract and company policies.
If your role requires driving and you lose your licence, dismissal becomes more likely as you can no longer fulfil your job requirements.
No. The driver who committed the offence is legally responsible for paying the fine and accepting penalty points.
Some employers may choose to pay fines as part of their company policy, but this doesn't remove penalty points from the driver's licence. The employer must identify the driver within 28 days or face their own penalties.
Yes. Penalty points from speeding in a company car stay on your driving licence for 4 years (and must be declared to insurers for 5 years). These points will affect your personal car insurance premiums when you renew, typically increasing costs by 23% depending on the severity and your overall driving record.
Yes. Employers have the right to monitor company vehicles using GPS tracking and telematics systems. This is legal under UK employment law, provided employees are informed about the monitoring.
Many employers use this technology to ensure compliance with speed limits, improve driver safety, and manage operational efficiency.
Discover the latest laws for vehicle tracking in the UK.
No. Speeding fines and penalty charges cannot be claimed as business expenses or deducted from corporation tax. HMRC specifically excludes fines and penalties from allowable business expenses. This applies even if the speeding occurred during work-related travel.
Yes. You should inform your employer immediately about any speeding offences in a company vehicle. Your employment contract likely requires this, and failure to disclose could be considered misconduct.
Employers need to know about penalty points to manage insurance policies, assess risk, and fulfil their duty of care obligations.
Speeding penalty points remain on your driving licence for 4 years from the date of the offence. However, you must declare them to insurance companies for 5 years. The points don't disappear from your record during this time, though their impact on insurance premiums typically decreases after the first 2-3 years.
No. Speed cameras detect all vehicles exceeding the speed limit regardless of ownership type. The Notice of Intended Prosecution goes to the registered keeper (usually the company for company cars), who must then identify the driver. The penalties are the same whether the vehicle is privately owned or a company car.
Contact your employer immediately. The company, as the registered keeper, must identify the actual driver within 28 days of receiving the Notice of Intended Prosecution. Provide any evidence of your whereabouts at the time of the offence. Falsely accepting or denying responsibility for speeding offences is illegal and can result in serious penalties.
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