Safety and costs. They’re at the heart of vehicle telematics, especially when you’re talking about auto insurance. Simply put, a safer driver is a better risk. A well-maintained vehicle is a better risk. And a fleet operation that’s run like a well-oiled machine (well, isn’t it?) is kinder to the budget—across the board.
Savings, Savings, Savings…and More Savings
Saving money is often one of the primary reasons companies invest in fleet telematics solutions. With access to data-based insights into their vehicle locations, automobile health, and driver behavior, business owners and fleet managers are able to reduce fuel maintenance costs, optimize vehicle and driver resource allocations, and save money in the back-office thanks to IoT-enabled automation.
But they can also save on insurance. Who wants to pay high auto insurance rates? Anyone? Telematics is here to change the game and carries a huge potential for insurance companies and managers of commercial fleets. Let’s consider the possibilities.
Telematics Boost Safety and Cut Costs
Telematics data helps fleet managers and business owners understand what puts them in the way of accidents and other losses, helping them prevent the incidents they’re insuring against. PLUS, implementing a fleet telematics solution shows their insurers that the business is tracking, monitoring, and actively working to reduce risks, like:
Theft prevention and recovery – Telematics tools like Automile alert you if a company vehicle moves out of specific geofences. And thanks to GPS tracking technology, managers have real-time information about vehicle location. Get more detail in How to Avoid Unauthorized Use and Theft of Business Vehicles & Assets
Unauthorized vehicle use – Again, let’s thank real-time GPS tracking for keeping fleet managers in-the-know about the “where and when” of their vehicles’ activities. If a driver is heading somewhere they shouldn’t be, or they’re using the company vehicle at odd hours, it’s fair to say there just might be some risky behavior at play.
Vehicle upkeep – This is such a delightfully practical consideration, but by monitoring fuel consumption and other vehicle health data, managers can minimize vehicle emissions, proactively address maintenance issues, and ultimately, improve vehicle performance. If you read between the lines, that means safety.
Driver Safety – Fleet telematics generates all sorts of actionable (and real-time) data related driving behaviors: speed, breaking, and other hazardous practices. That’s complete visibility into vehicle and driver activity. For more, read Should Fleet Safety Be One of Your Top Business Priorities?
And look at it all of this from the driver’s perspective. Ever hear of the Hawthorne Effect? When drivers know they’re being tracked, they’re more careful. They’re accountable. And they probably really appreciate your efforts to keep them safe, making driver safety a great cost-saving employee retention tool to boot. Get more on this topic in 5 Must-Haves to Attract and Retain Your Workforce-on-Wheels.
It all adds up to potentially lesser claims
And that’s good news for you—and good news for the insurance company. Everyone in this scenario loves a good risk. When your vehicles are less likely to get stolen or used for afternoon joyrides around the city, and when your drivers are less likely to put unnecessary wear and tears on vehicles and stay out of harm’s way, the risk goes down. And that means you’re not paying for replacing vehicles, unnecessary vehicle repairs, accident costs, or—you guessed it—high auto insurance rates.
Quite the contrary. You’re likely to pay lower rates for being a good risk for the insurance company. And today, some insurance companies provide discounts for companies who have fleet telematics solutions installed.
Telematics data helps business owners, fleet managers, and insurance carriers draw a direct line between safety and costs.
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