Vehicle telematics and GPS fleet tracking can drive financial savings in several areas for companies that employ mobile workers and fleets of vehicles. One of the most direct source of savings for companies that use GPS tracking is in insurance. Add these potential insurance savings to other financial benefits GPS fleet tracking can provide, and you can easily see how implementing GPS tracking can pay for itself in a short time.
While the savings for insurance might not be obvious, you can find it if you look a bit closer. The great thing about fleet tracking is that the benefits can combine to contribute to the overall savings – including on insurance costs.
Perhaps the best way to manage fleet insurance costs is to employ drivers with spotless driving records. But once they’re hired, how do you keep those records spotless? Fleet management solutions maintain data specific to each driver in your fleet. You can see how often drivers exceed the speed limit, where they divert from their standard routes, and when and where they engage in hazardous driving practices like quick stops, fast cornering and dodging in and out of traffic. By taking this specific driving data and applying it, you can turn dangerous behavior into teachable moments.
Simply put, the cost of replacing stolen vehicles is a huge factor in the overall cost of insurance. Having a fleet tracking solution installed on a fleet can make it much easier to recover stolen assets, resulting in fewer comprehensive claims against the insurance policy and fewer rate hikes that result from claims. In addition, it does a bonus social service by making it easier to catch the culprits, hopefully preventing any crime they might attempt in the future. It’s a win all around.
VEHICLE MAINTENANCE AND UPKEEP
A well maintained vehicle is a safer vehicle, and fleet tracking is your ticket toward better vehicle maintenance. Fleet tracking software allows you to set alerts that notify you when a vehicle has traveled a certain number of miles or hours, or you can set a reminder tied to a date that service will be due. The element of error is eliminated from the maintenance process. What that means is that your fleet will always be made up of well-maintained vehicles, making for a safer and more efficient fleet overall. Vehicles that are less likely to break down are less likely to cause catastrophic problems that result in insurance claims and increased rates.
You may have noticed that auto insurance companies are using telematics solutions to monitor drivers on a real-time basis and offering discounts to those who maintain safe driving habits. It’s a trend that’s sweeping the industry and you can’t miss the commercials on TV if you tried. Where there is data, there is the ability to predict risk, which allows insurers to offer those better rates (and, frankly, sometimes hit the poorer drivers with higher rates).
Small business owners need to take advantage of every saving opportunity they can find, and fleet tracking makes savings available in several ways, including on insurance. Make sure you’re taking advantage of every edge you can get, and your business will benefit.