HSA Healthcare has signed a £1.25 million contract designed to reduce fuel costs by 40%.

The health insurance firm decided to continue its 20-year relationship with Bank of Scotland Corporate’s vehicle finance team – and the two have agreed a two-year deal which will see the introduction of a new all-diesel fleet comprising 106 Volkswagen Golfs and Audi A4s.

The previous fleet was the result of a traditional ‘user-chooser’ scheme. All the vehicles are fitted with satellite navigation. The strategy is that the extra costs of the technology will be offset by the benefits. Drivers who do not get lost can get more done and waste less fuel, the company reasons.

Mark Bradbury, facilities and fleet manager for HSA said: ‘Through this deal we will achieve lower carbon dioxide emissions while reducing fuel costs.

‘Equally we will address recruitment and retention issues, by specifying well equipped satellite navigation-enabled vehicles from two top line marques, as well as enforcing our commitment to driver safety. Additional driver training has also been introduced to coincide with the arrival of the new vehicles.’

Toby Jukes, national account manager for Bank of Scotland, said: ‘We have worked with HSA for a number of years and are delighted to be continuing our relationship. The renewal of this contract is a reflection of our long standing relationship and ongoing commitment to HSA to provide a cost effective and competitive service.’