Learn how to create a car budget policy for car list-based ordering methodologies.
Navigate to Car Budget Policies
Follow the steps to navigate to the Car Budget Policies page, where you can add and edit budget policies.
- From the Home Page, or any page, select “Car Budgets” in the ‘Policy‘ section of the main menu
- Select the “Benefit budget policies” module
From the Car Budget Policies page, we can add, edit, activate, and manage our collection of Car Budget Policies for the company.
Create a New Budget Policy
Get Started & Set the Budget Type and Included Leasing and Service Packages
Create a benefit policy for car list-based ordering methodologies.
- Click “+” to create a new car budget policy.
In this scenario, we’ll configure the car policy for car list-based ordering methodologies, as it is a common implementation. Let’s define our Car Policy. Note that there are many other alternatives possible!
Car Policy: drivers can select a vehicle from the list of pre-configured vehicles. They can add additional options to the vehicle configuration (e.g. a tow bar), but at their own expense: the options have to be paid in full with their gross wage.
- Enter a descriptive name for your new car budget policy, then follow the steps to complete the basic setup.
- Select Benefit Budget in the Budget type menu.
- Select a lease service package in the next drop down menu.
- Open the Unbundled Car Insurance Policy dropdown to select a relevant insurance policy.
- For most clients using a car list-based methodology, leave the Additional Unbundled Services field blank.
- In Related Quote Set field, leave the drop down blank.
Why don’t we link a bulk quote in the Related Quote Set field for car lists?
In the car policy we’ll configure in this scenario, the catalog option price of the additional options will be charged. Therefore, our implementation does not require lease amounts for calculating the cost, and we do not need to link a bulk quote.
Setting Up Budget Policy details & Budget Components
Set a clear budget name to organize and identify this policy.
Continue setup by adding Mileage and Duration.
Now, we can set up the Budget Components, including (TCO) calculation method, settings and contribution type.
This is an important step for car list-based ordering methodologies. Replace the default budget component (Total Cost After tax) with a calculation method based on option price.
- In the dropdown, deselect Total Cost After tax.
- You can choose from available calculation methods offered by Headlight.
- In this scenario, select Options catalog value.
- Click outside the dropdown to close it.
- “Options catalog value” now appears in the Budget Component selection field.
Configure Maximum Contribution and Contribution Type
As mentioned, employees are allowed to add additional options.
Of course, we might want to cap the maximum personal contribution. If a single limit applies for all car policy levels, we can set the maximum employee contribution for the car budget policy here.
- Set the maximum employee contribution for the car budget policy.
- Select Lump sum gross for the policy.
As mentioned, according to our car policy, the additional options can be paid with a gross wage budget.
Therefore, we’ll select “Lump sum gross”
Configure Budget Levels and Contributions per Level
- For car list-based policies, skip the Limit per budget level.
The budget limit normally contains the budget that is made available to employees for configuring a vehicle.
In car list methods, (cfr delta-budget setting below), it indicates the additional budget provided by the employer that employees have to add options on top of the pre-configured vehicle.
As options are at the expense of the employee: this should be €0
- Add another budget level to support multiple employee groups.
- You can add as many levels as are necessary in your Car Policy.
- Set the Limit per budget level for each budget level you create.
- For each budget level, select which employee types this budget level applies to. Open the Employee types drop down, and select your company’s employee types that match this budget level.
Enable the Delta Budget Option
This is another important step for car list-based ordering methodologies: mark the Delta budget checkbox.
As mentioned earlier, our car policy configures how additional options on top of the pre-configured vehicles should be treated. Therefore, it is a delta-budget.
In Headlight, you can click the information icon for more about the Delta budget option.
As the tooltip explains: choose a delta budget if drivers receive a car from the list with preselected options. Any additional options are calculated in the driver contribution according to the policy.
Save Your Newly Created Budget Policy
- Save the policy configuration by clicking SAVE.
- Click CONFIRM to finalize your new car budget policy.
Your newly created Car Budget Policy has been added to the list. Multiple policies can be added, including inactive ones.
Reviewing and Activating Your Budget Policy
Before a budget policy can be used by drivers, it must be activated.
- The orange label indicates that the new policy is still inactive.
- Click the row to go to the Car Budget Policy page.
- Manage activation with the activation button.
- Click CONFIRM.
- A green dialog confirms the change was made correctly.
- Save and confirm before closing.
- Return to the Benefit Budgets overview via the breadcrumb link.
- The status now shows active.
You’ve now completed the training to create a New Car Budget Policy and Set Budget Levels.
