How GPS tracking is helping lower insurance premiums
Fleet managers are looking for ways to save money amid rising inflation and mounting supply chain costs, and help could come from an unexpected source — lower insurance costs.
While it’s true that insurance rates are also spiraling out of control, in part due to factors such as climate change and an increase in the cost of car insurance claims, there is now a way fleet managers can reduce their premiums, and the secret lies in GPS tracking devices.
How are GPS trackers lowering auto insurance premiums, and what other benefits can fleets enjoy when they equip their vehicles with a tracking system?
Five reasons insurance companies are offering discounts to fleets with GPS tracking
1 - Documented safety record
Vehicle tracking allows fleet owners to provide insurance companies with tangible snapshot of a safe driving record, proof that they are a lower risk than others, and merit a discounted premium.
GPS tracking systems fitted to each fleet vehicle can measure a range of safe driving behaviors — obeying speed limits, safe cornering, a gentle driving manner — and this can provide a reported safety score for each driver, and the entire fleet.
2 - Anti-theft measure
GPS trackers can detect movement outside of authorized hours, or events such as ignition on or a door opening. This can trigger a notification that can go directly to a security team to assist with the quick recovery of a stolen vehicle using tracking technology.
Some vehicle tracking devices have an automatic theft mode where the reporting frequency increases to track its location in real time.
3 - Improved driver behavior
When drivers know their good behavior behind the wheel is being recognized (and hopefully rewarded) driving habits naturally improve. GPS tracking devices can be linked to individuals and encourage them to drive safe, and this provides an excellent platform for fleet managers and supervisors to provide targeted coaching.
4 - Accident replay feature
Car tracking devices can serve as “black boxes” in the event of an accident to make the work of assessors faster and more sure, as the moments before an accident can be reconstructed including details such as speed and direction of the vehicle, and exact timings.
The data from the vehicle tracker is saved in a cloud-based app for easy access and reference as part of an accident investigation.
5 - Managed miles
It’s a basic rule that the more miles you drive, the greater the chance of an accident. By tracking all miles, it’s more likely company vehicles will only be used for necessary business, limiting the amount of miles driven, reducing the likelihood of a collision. GPS tracking can also help to reduce miles driven through more efficient routing and trip planning.
Some insurance providers offer car insurance premiums that include insurance discounts for low mileage vehicles, and a tracking device can make this much easier to achieve.
What are some other benefits of GPS tracking?
GPS tracking, also known as fleet management software, offers business owners additional benefits including:
Optimized resource planning — GPS tracking allows fleet owners to have a holistic view of all assets, meaning resources can be allocated intelligently to maximize productivity and efficiency, and resource utilization. This improves the overall ROI on all assets, resulting in better profitability.
Streamlined compliance — Many commercial drivers are required to report on driving hours, helping to prevent the dangers associated with fatigued driving. A modified GPS tracking device can serve to provide a legal solution for fleets who need compliance software and want to encourage employees to be safer drivers.
Fuel savings — With fuel prices at record highs, there is good reason to find ways to minimize fuel usage. GPS tracking can help you achieve this in a number of ways including minimizing idling, eliminating unnecessary trips, driving at more efficient speeds and smarter route planning.
Better maintenance schedules — GPS devices can plug into a vehicle’s OBDdiagnostics and report on a range of real-time conditions. This allows vehicles to be maintained based on the actual wear and tear of the vehicle instead of an arbitrary schedule, avoiding wasteful maintenance, while making sure all vehicles enjoy a good program of preventive maintenance.
How much can GPS tracking reduce my insurance premium?
The actual savings vary depending on where your business operates, and the type of business, but some insurance companies offer discounts of 30% or more for a verified installation of GPS tracking across a fleet. Contact your insurance provider, such as Nationwide, Progressive and other car insurance companies, and ask them about discounts on your insurance policy for using telematics.
Fleets with good safety programs tied in with their GPS fleet tracking driving data, safe drivers, and a proven history and culture of safety can expect even greater savings.
If you haven’t yet set up a GPS tracking solution with your fleet, and a driver safety program, then get in touch with us for assistance.