How to Avoid Sky-High Insurance Premiums

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Motor vehicle accidents account for 40% of total work-related deaths, and more than 38,000 people die in car crashes every year in the United States at a cost of $871 billion to U.S. citizens.

These statistics make for harrowing reading but also help explain why insurance premiums are so expensive. If you’re insuring an entire fleet of vehicles, chances are you’ll be looking for ways to avoid those sky-high insurance premiums.

What are insurance premiums?

Insurance premiums definition: The amount of money a business or individual agrees to pay an insurance company for an insurance policy. In return, the insurance company is liable for payment if the vehicle is damaged or stolen.

Insurance companies determine the cost of insurance premiums by evaluating the likelihood of a claim being made. They look at things like past driving records, vehicle type, age, safety features, and annual mileage.

Your location can also greatly impact insurance premiums. If you’re in the state of Maine, where roads are typically less congested, drivers pay an average insurance premium of $935. However, those in Michigan fork out an average of $3,096 (largely due to a requirement for Michigan drivers to have no-fault insurance).

Lower your insurance premiums with Azuga’s GPS tracking

One of the easiest ways to reduce commercial fleet insurance premiums is by installing GPS tracking software on your fleet’s vehicles. Azuga’s GPS tracking system allows you to collect real-time data on your drivers, and also add several layers of security to protect your drivers and business.

Reasons insurance companies love Azuga’s GPS tracking software

We locate stolen vehicles

Azuga’s GPS tracking software means police can quickly locate and recover lost or stolen vehicles. So insurance companies won’t have to pay out large claims for missing vehicles.

We promote a culture of safer driving

Fleet owners can harness data on driver behavior to provide intuitive, tailored training. You’ll be alerted to drivers who exhibit speeding, harsh braking, or excessive acceleration, allowing you to provide the appropriate training. In time, GPS tracking will help your drivers embrace a culture of safer and more economical driving.

We stop misuse of vehicles

With GPS tracking, drivers are more likely to stick to the planned route. They’re less likely to make a detour to pick up some shopping or take a fleet vehicle on a family road trip. Of course, this means vehicles will clock up fewer miles, spend less fuel, and be less likely to be involved in accidents, which is music to your insurance company’s ears (and your own).

We encourage proper maintenance

Vehicles that aren’t maintained properly cost more in gas, labor, parts, and repairs. Azuga’s GPS tracking and telematics system provides real-time vehicle diagnostics and sends alerts for any issues. We also send reminders for recurring maintenance, such as oil changes and tire rotations. If your vehicles are safer and better maintained, insurers are more likely to provide you with discounted insurance premiums.

The GPS discount

Because GPS tracking software provides an automatic risk reduction for insurance companies, most will offer a discount of up to 15% off insurance premiums.

Some insurance companies will pay you to implement fleet tracking software. They may even pay for the technology and implementation, subject to conditions. Talk to your insurance provider to see if it’s something they offer.

Access more insurance cost savings with Azuga’s SafetyCam

As well as offering GPS tracking and telematics Azuga offers SafetyCam, our smart dual-facing fleet dash camera. Our dash cam provides visual documentation of driver performance, traffic, and accidents.

Dash cam evidence is admissible in claims or lawsuits, and could help free you from accusations of fault. SafetyCam will help you avoid paying higher insurance premiums as a result of accidents where you were otherwise unable to prove third-party liability.

SafetyCam benefits and opportunities include:

For drivers

  • Monitor risky driving behaviors
  • Reward safe and efficient drivers
  • Retain your best team members
  • Build mutual trust

For fleet owners

  • Receive instant accident reports
  • Exonerate drivers with undeniable video evidence
  • Reduce insurance claim resolution times
  • Lower your insurance premiums

Whether you’re a small business owner or director of a large fleet, learn more about how Azuga can help make your fleet safer and more profitable by exploring our website, or by scheduling a demo.