The impact of digital transformation has widely gained momentum in the insurance industry. Availability of adequate resources and finances at their exposure, digital insurers pursue to adopt smart decisions that can intensify their insurance value chain.
A survey reveals that beyond regular insurance products, a spurt of remarkable innovation such as usage-based insurance (UBI) is observed among most of the insurance companies. Recently, the telematics system is widely adopted into vehicle tracking devices with an intent to acquire UBI benefits.
As such, trucking companies looking into ways to save money on insurance premiums should delve into adopting strategic digital technologies, such as telematics.
What Is Telematics?
Telematics refers to the technology of collection and transmission of data related to vehicle usage, automotive servicing, and maintenance requirements. Wireless devices and ‘black box’ technology permit the insurers to monitor and record driving patterns of fleet operators.
The installation of vehicle tracking devices in small and large fleet enables fleet managers to send, receive, and store the telemetry data. GPS data, along with an array of other vehicle-specific data, is collected and transmitted via GPRS (General Packet Radio Service) and a cellular network.
Highly sustainable telematics systems are crucial for the safety and security of your fleet. You can discover more here to understand how telematics works and its various usage techniques.
How Using Telematics Can Lower Insurance Costs
Large fleet owners often face challenges in reducing fleet insurance premiums. They purchase periodical insurance to ensure vehicle safety and lower the potential for risky driver behaviour when they’re out in the field.
With the implementation of telematics, you will get a range of benefits for managing your small and large fleet. The data and information collected can serve as a means of gaining deeper insights and provide a comprehensive analysis of the ins and outs of the entire fleet.
Here are some of the most valid reasons to adopt telematics and witness a guaranteed cut down on insurance costs.
Cost-Efficient
The installation of telematics proves as a cost-efficient strategy. When your drivers practice safe driving habits, not only will the insurance premiums eventually reduce, but you stand to lower the overall costs of fuel consumption. Moreover, your vehicle lifespan increases if your team of drivers is well-trained.
Ensures Safety
Telematics provides an extensive review of your driver’s abilities in terms of vehicle usage. Driver details include:
- Speed limit
- Driver behavior of aggression and frequent jolting
- Number of breaks taken in the long journey
- Driving time
- Total mileage
As a fleet manager, you can use telematics-based ratings to analyze, observe, and modify the risk-oriented behavior of your drivers. You can power up your team of drivers with adequate training programs to sharpen their driving skills, and provide them with sufficient feedback and coach them regularly.
This would encourage your fleet operators to become better and would work more efficiently to gain high incentives. Moreover, the consistent application of safe driving habits ensures you get premium reductions for your fleet.
Insurance Discounts
Certain insurers provide attractive insurance discounts if the fleet owner installs the telematics on their devices. Insurance companies tie up with GPS fleet tracking providers, thereby motivating fleet owners to invest in the technology and grow their business.
Provides Vehicle Security
It is imperative to ensure the security of vehicles against theft and damages. A systematic technology that helps recover a stolen vehicle or prevent vehicle theft can also aid in protecting claim histories. The improved chances of vehicle recovery would guarantee your company a reduction in insurance expenditure.
Protection Against False Claims
The dashboard camera in the vehicle serves as a documentation of activities in the times of vehicle usage. Fleet cameras can record the driver performance, aggressive driving, and traffic conditions.
The cause of collision can be easily traced through video data. In case of legal issues, such data will preserve a piece of staunch evidence that can settle disputes arising from false claims.
In the end, your fleet remains protected against any legal actions and ensures a quick settlement.
Instant Access To Driving Details
Insurance companies can easily extract regular data of vehicles and driver behavior onboard, which enables complete transparency and no scope of delays. Telematics pass on valuable driver data to the insurance company instantly and can give you and your carrier a quick breakdown of information.
Reasonable Insurance Rates Determined
Insurers generally base their premium rates on factors such as age, marital status, and location. Telematics eliminates these generic assumptions that determine the risk status of a driver and helps them rate insurance premiums in terms of metrics like speed and sudden braking.
If your driver follows simple rules to drive safely, responsibly, and legally, the age does not matter. A telematics-based rating method will ensure that your drivers are treated fairly and rewarded lower premiums for responsible driving behaviors.
Brings Down Accident Rates
Drivers become more conscious of telematics systems installed in the vehicle. Continuous observation keeps them watchful and alert while on the road and lessens the chances of clashes.
Safe driving is followed by safer roads for others, and eventually reduces the cost of insurance premiums. Samsara provides systematic guidelines and support for successful fleet management. To know more, you can visit their website.
Value-Added Services
As the owner of a commercial fleet, you can avail value-added services offered by insurers in addition to telematics installation. Such services are customized based on the requirements and availability of resources with the vehicle owners.
Insurers may give 24/7 roadside assistance or an extensive vehicle insurance policy with attractive features.
Make Your Fleet Smarter And Safer!
The future of telematics stands by an exponential growth with the development of new applications.
With vehicle telematics, insurers gain access to valuable driver behavior data. More and more fleets are finding the need to monitor onboard activity with an intent to cut down on costs and enhance productivity.
Telematics provides an array of usages for all fleet sizes besides cutting down on insurance costs. Other benefits such as asset tracking, improvisation of maintenance schedules, and safety tracking are also available. Besides, technology strengthens long-term customer relations over the course of time.
Related – 3 Ways you Can Leverage Technology in Your Business
