Can tracking drivers cut the cost of insurance policies?
Could it really lower insurance premiums?
One of the main benefits of using telematics is a reduction in premiums to your insurance policy. You may be wondering how that would work? It’s quite simple.
Telematics vehicle trackers are installed into the van or car to monitor the driver and how they use the vehicle. It can analyse data from speed, stop times and location. A vehicle that is driven well and up to road safety standards is proof that the insured vehicle is not a liability to the insurance provider.
Typically, any insurance provider would normally place a premium on a vehicle or policy due to some factors. They take into consideration, firstly, the vehicle itself and what insurance group it may be categorised in. For a fleet, the individual can’t normally be identified personally, so many fleet policies will be based on broader terms. This may include an age range or a minimum age for the driver, and it could also be varied in regards to driver experience. For example, one driver for your business may be a twenty-two year old male who has been driving for two years, versus the next driver who is forty-five and has been on the road for many years with no accidents, etc.
This is why installing vehicle trackers means that you pay your insurance premium and basing it on how the vehicles are driven, rather than basing it solely on statistics of age and experience.
Could it help monitor your drivers?
However, there isn’t just a benefit to the company in regards to their insurance costs. There is a whole host of other ways telematics can help you be more responsible for your fleet of vehicles, and having a duty to the road safety of other drivers on the road. Vehicle tracking will allow you to monitor the driver in regards to speed and even location. Helping you with fleet management and to avoid situations where reckless driving could be involved, or when work commitments and appointments are not being kept to in a timely manner.
GPS tracking could help in other eventualities
Some businesses also have the issue of vehicles being stolen from compounds. This may also be an issue if the company vehicle is taken home by the driver and perhaps stored in an unsecured location. Having vehicle trackers installed on the vehicle not only helps you track the whereabouts of the driver during work time, but it could also help in a situation if a particular vehicle is stolen. This can be useful to your insurance provider and also the police looking to investigate.
Will drivers oppose vehicle trackers?
While it may be seen by the employee that the company may be scrutinising their every move, vehicle trackers can prove hugely beneficial to companies in regards to their costs and employee productivity. It enables a business to keep track of their fleet, which could also mean that if a certain business opportunity arises they can respond more rapidly and can commit to appointment times or deliveries. Whatever the business may be operating.
It can also prove useful if there are any disputes in regards to working hours, speeding fines or even accidents. A telematics system will monitor every aspect of the driver and the driving behaviour. Which means that fines that may be brought to the attention of the company, can be passed on to the relevant driver, rather than being a cost to them, or used as evidence to dispute if the driver claims that they were not involved
More businesses and insurance providers are seeing the major benefits to having a telematics system installed into the company fleet of vans or cars. It can be advantageous to the business to promote good driving and accountability, they may even be able to incentivise employees and drivers to be “on board” with the scheme.
To find out more about how vehicle trackers can help reduce costs in your business, enquire about a vehicle trackers cost today.