Summary: The cost of driver compliance software can range between $150-$1,200 per month, or $1,800-$14,000 annually. This does not include the cost of in-house or outsourced management of your DQ files. For a full chart broken down by fleet size, view our average cost comparison chart.
While running your motor carrier operation, one of the most critical parts of your day-to-day is managing your driver compliance with Federal Motor Carrier Safety Association (FMCSA) regulations.
Hundreds (if not thousands) of forms need to be completed by employees, collected by staff members and tracked annually to comply with federal regulations.
If your operation is working exclusively with paper, this is a colossal undertaking - and inevitably, a ticking time bomb.
The worst part? The villainous boogeymen are out to get you at any given time. Whether it's an audit (either off-site or on-site), or the billboard trial lawyers seeking that multi-million dollar lawsuit after an incident, you have your work cut out for you.
It’s cumbersome and time consuming to worry about the intricacies of compliance when you already have so much to do. You know it’s extremely important to stay DOT compliant, but it feels as though for every paper form you complete, 5 more take their place, and you might be rapidly running out of room - in your file cabinet or your brain.
So what do you need to do to prepare yourself for maintaining your driver compliance?
It starts with going digital. Use DOT compliance software to do the heavy lifting for you.
Price is always a key factor when selecting driver compliance software - this article aims to furnish you with the essential information needed to make a well-informed purchasing decision.
The cost considerations for driver compliance software are influenced by a few factors. Understanding these key elements is crucial for making an informed decision tailored to the specific needs of your business.
The amount of admins and/or drivers is a primary determinant of the costs associated with compliance software.
Motor carriers with more than 250 drivers often deal with more complex needs, like custom reports and integrations. As a result, their pricing structures may be designed to accommodate the scale of the business, impacting the overall cost.
Motor carriers with less than 250 drivers typically have less of a need for customizations and integrations, so a standardized approach is typically sufficient for their needs.
When looking for driver compliance software, the utilization of features and functionalities are often factored into the overall cost. Some platforms provide fully-enabled platforms and determine price based on admin/driver count. Others strip out features based on the "tier" of pricing.
The management of Driver Qualification (DQ) files also adds to the overall cost of maintaining driver compliance.
You can use DOT Compliance Software to streamline and automate your DQF management. This reduces your risk of going out of compliance and makes you more efficient. However, if you don't have the right team in place to perform the duties sufficiently, you’re at risk of going out of compliance or losing to a trial lawyers.
Digital DQF management is considerably smoother, faster, and more efficient than paper files. However, you still need to consider the human hours when evaluating driver compliance software.
If you're looking for a quick summary of everything that you need to remember for DOT compliance, check out our Driver Qualification Checklist. This clear and concise downloadable PDF guide will help you easily understand and retain the key aspects of Driver Qualification regulations.
One-time onboarding and implementation fees are often tacked on to your first invoice upon signing up for DOT compliance software. These fees are designed to help cover for the sunk costs that are associated with a new client buildout of a platform.
This is a common tactic for vertical-oriented software that requires a large "build-out" to configure the software (multiple weeks/months).
Beyond the software, the heaviest lift is digitizing your paper files and moving them into your new software.
Software platforms that are free to sign up for or "self-service" typically don't have onboarding and implementation fees. That’s because they are "self-guided" and don't require a human to engage and guide you through the onboarding process.
Integration costs represent a key consideration when implementing driver compliance software into existing systems. This is especially prevalent for larger fleets. You should be aware of the fees associated with integrating the compliance software with your current infrastructure as well as the timeframe in which it will take to do so.
Look out for vendors seeking to lock you in for annual or multi-year commitments when purchasing their software. This can often be used as a bargaining tool for a longer commitment at a lower rate. While the price for an annual membership or subscription may seem attractive up front based on the monthly discount, you should consider asking for a trial period to test out the software to ensure it's the right fit for your needs.
Locking in terms for a year is not a bad thing if there is an out clause that you can leave without penalty if you give 60 days notice. Anyone with a penalty is using hard ball tactics to keep you.
Another important note you should consider when researching the investment of driver compliance software is annual price increases. This increase is highly common among software products. A reasonable price increase tracks with CPI (Consumer Price Index).
The price of driver varies among different vendors, but in 2024, the average costs for driver compliance software is as follows (broken down by monthly and annual expenditures):
|
Number of Drivers |
Average Monthly Expense |
Annualized |
|
1-19 |
$300 |
$3,600 |
|
20-49 |
$562 |
$6,744 |
|
50-199 |
$750 |
$9,000 |
|
200-499 |
$1,275 |
$15,300 |
|
500-999 |
$3,000 |
$36,000 |
|
1000-2,999 |
$5,250 |
$63,000 |
The above prices are subject to annual adjustment
Custom pricing tends to start around 3,000 drivers based on the complexity on the set up.
The level of features and functionality all vary based on the provider, but according to our research, this is what you can expect to spend on driver compliance software in 2024.
Driver compliance software is designed to help you protect against the two boogeymen out to get you: audits and billboard lawyers. Regardless of the size of your company, you can defend yourself with the right measures in place.
You may not expect yourself to be sitting in a deposition chair, but it can happen to you. To help you understand the amount of money you can save, take a look at the chart breakdown below:
|
Number of Drivers |
Average Annual Expense for Driver Compliance Software |
Average Lawsuit In Relation to OOC File |
Cost-Savings with Driver Compliance Software |
|
1-19 |
$3,600 |
$800,000 |
+ $796,400 |
|
20-49 |
$6,744 |
5,000,000 |
+ $4,993,256 |
|
50-199 |
$9,000 |
$11,064,000 |
+ $11,055,000 |
|
200-499 |
$15,300 |
$34,000,000 |
+ $33,984,700 |
|
500-999 |
$36,000 |
$50,000,000 |
+ $49,964,00 |
|
1000+ |
$63,000 |
$100,000,000 |
+ $99,937,00 |
Research according to Nuclear Verdicts Trends, Causes, and Solutions study by U.S. Chamber of Commerce Institute of Legal Reform
As you can see in the table, a minimal investment of DOT compliance software can help you overcome a hefty, potentially business-closing lawsuit.
Staying in compliance with the DOT shouldn’t be overwhelming or costly. It shouldn't be reserved for the wealthiest motor carriers either. You deserve to have the power to stay in business with all the tools necessary to do so, and most importantly, keep the roads safe.
Driver compliance software can do that for you at a reasonable price. Best of all, you’ll save money from the investment.
If you’re interested in learning more about AvatarFleet's DOT compliance software, click the button below to schedule a demo!