Insurance Telematics: What Is It And How Can It Lower Your Fleet Insurance?

Did you know Insurance Telematics can lower your fleet insurance rates? With the added insight telematics provide, insurance providers may lower your premiums by up to 30%!

Telematics can not only help lower your commercial auto insurance but also reduce operational and administrative costs for your business.

In this article, we are going to explain:



What Is Insurance Telematics

Telematics is a type of software that uses GPS and onboard diagnostics to monitor an asset, like a car or truck. It helps employers effectively manage and monitor their commercial fleet of vehicles. The Data that Vehicle telematics commonly collects are:

  • Vehicle speeds
  • Location(s) Of Fleet Vehicles
  • Diagnostics data related to fuel efficiency and vehicle performance
  • Driving behaviors (e.g., braking intensity or acceleration frequency)
  • Vehicle weights
  • Movement patterns of a vehicle
  • Distracted driving incidents (e.g., smartphone usage)

This software connects to telematics devices installed in a vehicle, such as GPS, dashcams, mobile apps, special sensors, and engine diagnostics equipment. Telematics can be applied to a range of commercial vehicles, from cars, vans, and trucks to tractor-trailers, buses, and heavy equipment. It gives employers the opportunity to:

  • Monitor deliveries
  • Determine routes
  • Communicate with drivers
  • Review employee safe driving practices
  • Detect vehicle maintenance concerns

The Benefits Of A Telematics Program

Telematics offers even more benefits than providing valuable information and monitoring methods to employers. Employers can use this information to improve several areas of their business operations.

Reduce Operational Costs

Telematics help drivers monitor road conditions, providing updates on upcoming traffic and road hazards. It also offers rerouting options and will locate preferred gas stations. Your drivers can thus avoid lengthy delays, improve fuel efficiency, and easily find the best fuel at the best price—all of which reduces operational costs.

Encourages Safe Driving

Telematics motivates drivers to follow safe driving practices since it records their driving behavior. With some systems, employers can send real-time alerts to correct their behavior. Not only does it help identify dangerous driving behavior, but also shows where drivers can improve their practices. For instance, if a driver’s fuel efficiency is consistently less than others, their driving behavior data can help identify the problem, such as frequently accelerating and decelerating. Employers can thus personalize their coaching to encourage safer and improved driving practices.

Foster Employee Engagement

When an employee’s workplace is mostly confined to the cab of a vehicle, they may not feel connected to a team. Telematics connects your drivers and other team members, such as their supervisor, dispatchers, and co-workers. Employees can digitally communicate travel progress, road conditions, special delivery requests, vehicle concerns, and more.

Improves Fleet Security

Telematics software can help keep both drivers and vehicles safe. With its advanced communication features, telematics software helps driver quickly alert authorities of their exact location in case of an accident. Some software can automatically alert the authorities in case the driver is incapacitated. In addition to advanced communication, telematics also has advanced tracking features. The software can trace the route of any stolen vehicle for quicker recovery. Some software even offers preventative theft measures, like requiring drivers to enter a passcode to start the vehicle.

Ensures Vehicle Maintenance

Telematics software can track and inform drivers of routine maintenance requirements, such as oil changes. Furthermore, it can detect vehicle breakdown or real-time maintenance concerns, such as engine or diagnostic problems.  The software can alert the driver and locate the nearest service garage. These vehicle maintenance and preventative measures help employers get ahead of any potential problems with their fleet. It can save time and money, keeping business running smoothly.

Reduces Administrative Costs

Maintaining manual records is very time consuming. Telematics automates this process so office staff can focus their efforts on more pressing matters. The software can generate expense reports, as well as other reports, like driver performance, maintenance, fuel expenses, etc.

How Insurance Telematics Can Reduce Your Commercial Auto Insurance

Information is valuable, and telematics provides lots of information. The data offers much more insight on drivers than a government driving record. It also gives insight into the condition of vehicles and how well they are cared for. Thus, insurance providers can better analyze the risks of insuring a company’s drivers, vehicles, and the overall fleet. Commercial Auto Insurance providers can lower premiums according to the more clearly defined risks.

Telematics also show improvement. So, employers can use the information to improve their operations and their drivers’ behaviors. Then, they can take that improved data back to their insurance provider to lower their premiums even further. Therefore, telematics can lower premiums now and lower them even more in the future.

Re-Evaluating Your Commercial Auto Insurance

If you’re reading this article, then you’re probably reevaluating your commercial auto insurance. ALLCHOICE can help.

As an independent insurance agency in North Carolina, we will carefully evaluate your company’s insurance needs. Our experienced agents will discuss all your options and how you can save on commercial auto insurance, and any other insurance you need.

Our goal is to get you the best coverage at the best price. Contact Us today for a no-pressure consultation.

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