How to Lower Insurance Premiums for New Fleet Drivers

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Insurance companies may consider new fleet drivers a bit of a risk. Until they prove themselves to be safe drivers, premiums for recently hired drivers can be high. Of course, businesses want to lower these costs as soon as possible, but how can they do that? There are many different ways to obtain discounts, even for new drivers. This article will break down some of these methods. 


Telematics is a technology in vehicles that tracks data like speed, location, HoS, braking, acceleration, and more. It then sends this information in real-time to an external source such as fleet management software. This software creates actionable reports that are easy to read and allow fleet managers to help drivers become more efficient, maintain safety, and improve fleet operations. Telematics hardware is easy to install; it simply plugs into the OBD port and is ready to go. 

By tracking driver behaviors that indicate distraction, drowsiness, or aggression, telematics keeps drivers and the roads safe. These behaviors include hard braking, rapid acceleration, speeding, swerving, and more. Paired with a dual-facing dash cam like Azuga’s SafetyCam, telematics can track even more behaviors, like the driver using their phone, eating while driving, or becoming unfocused. Distracted driving alone caused 3,142 deaths in 2019, so it is a significant traffic concern. 

Insurance companies know of the dangers of distracted, drowsy, and aggressive driving and encourage fleets to circumvent these with telematics and dash cams. They often offer insurance discounts just for having these features in place. If not, fleets can use these features to prove with hard data that their drivers are driving safely over time. The reports provided by insurance telematics can easily show this. If insurance providers see that a fleet’s drivers are committed to being safe on the road, they are far more likely to extend a discount, as they would count that fleet as less of a risk. 

Fleet Risk Assessments

Fleet risk assessments are a regular part of keeping fleet insurance costs down. Fleet risk management means ensuring that a fleet meets the highest standards of safety. There are many reasons to prioritize fleet risk management, but one major motivation is to improve fleet safety and lower insurance premiums. Four basic steps in fleet risk assessment are below: 

  1. Identify the Hazards Within the Job and Who They Might Harm: This includes hazards like distracted, drowsy, or aggressive driving, or other risks that may be specific to routes that a fleet takes, such as mountainous roads or those with other risks. 
  2. Establish How to Mitigate Risks: This step involves implementing safety features such as telematics, dash cams, and maintenance alerts or checklists. Keeping vehicles safe is crucial to maintaining a productive fleet. 
  3. Record Findings: Monitor the fleet after implementing these safety features in case any additional hazards or problems arise. Keep notes of any issues and how you plan to fix them. 
  4. Update the Assessment: A fleet risk assessment is useless if it’s out of date. Make changes as situations arise over time, and record any improvements made. 

Set Safety Standards

Setting expectations is an essential part of any job, and the same goes for fleet drivers. Safety standards are a must in any fleet business. This includes ensuring drivers’ documents are up to date, including drivers’ licenses and background checks. New drivers, in particular, should be watched to make sure their mileage matches the average and none of their metrics are above the norm. Ensuring that everyone is on the same page is crucial for a working environment, and makes drivers feel more confident in their jobs. It ensures a safer environment, which lowers insurance premiums as well. 

Driver Coaching

If for any reason a new driver is having difficulty maintianing safety standards, coaching is a necessity. Azuga’s SafetyCam comes with the ability to administer in-cab coaching, so fleet managers can address issues as soon as they arise. This is vital when it comes to avoiding costly and dangerous accidents on the road. By combining in-cab coaching with features like driver rewards, fleet mangers can incentivize drivers to practice only the safest behaviors. When insurance companies see fleet businesses encouaraging safe drivers, they are more likely to extend insurance discounts. 


The most significant factor in lowering insurance premiums is encouraging safety, either with insurance telematics, with safety standards and driver rewards, or both. Safety is a top priority for any fleet business, so demonstrating this focus to insurance companies should be a breeze. Azuga’s telematics and dash cam technologies are state-of-the-art and promote safety in fleets all over the country. To find out more about these systems, reach out to the experts at Azuga today!