The use of telematics has the ability to greatly impact insurance costs, in comes cases—as much as 25%. When a fleet can prove that their drivers have a lower risk (i.e., by examining the number of miles driven compared to the number of risky driving events), then insurance companies will usually assign a lower risk level to the company. This results in premium savings, as well as savings for self-insurance programs. Some insurance companies will even provide or pay for telematics systems to help make this determination. This has opened the door for fleet owners to assess not only their own drivers, but also how their safety and risk ratings stack up against other companies. Telematics help encourage a culture of safety and allows fleet managers the ability to pinpoint problematic trends or employees so that they can develop the most effective improvement plans. This also helps with buy-in from employees, and an ability to individually coach them through any deficiencies. While telematics isn’t absolutely required, some insurance companies will not pursue insuring fleets without it.
- Video telematics help with identifying and pinpointing equipment problems vs driver problems, and can substantiate claims better with visual evidence
- Other “uncontrollable” such as drowsy driving or alerts for sudden stops can be incorporated with video telematic systems
- Developing driver scorecards from telematics systems helps demonstrate the safety record of each driver and provide personalized areas of improvement
- Communicating the results of telematics to insurance companies is key to negotiating better price points
Article Source: https://www.government-fleet.com/
Link to complete source story: https://www.government-fleet.com/10179310/leveraging-telematics-for-insurance
Photo Credit: EROAD
Disclaimer: In the News blog posts are Doering's take on the best content and the latest news in the Fleet Management Industry. Doering did not write the original source article.