Switching from company cars to employee-owned cars reduces the cost of insurance, claimed Provecta Car Plan.
It said companies using its employee car ownership scheme were saving up to 12% on their insurance costs.
A Provecta survey into insurance costs for 3,000 employee-owned vehicles revealed that the savings were down to reduced claims for accidents, meaning reduced premiums, lower excesses and less time spent processing claims.
"The reduction in accident damage is mainly down to the `ethic of ownership'. There is a fundamental change to drivers' mind set when the vehicle is their own," said Provecta Car Plan managing director Nick Sutton.
"They not only drive with more care, they wash it and park it with more consideration. A car in good condition also gives drivers more options at the end of the contact."
