How to Negotiate Your Fleet Insurance with GPS Tracking Insights

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Today, most fleets take advantage of GPS tracking. For many, this is a simple compliance issue, meant to satisfy the ELD Mandate. But beyond compliance, GPS fleet trackers and the telematics they provide can be a significant source of savings for your fleet.

A good telematics program offers incredible amounts of data that can be used to streamline operations and save money. You can reduce fuel costs and fleet maintenance costs, improve fleet safety, retain good drivers, and see other benefits as well. But did you know that you can also save money on fleet insurance premiums?

Commercial fleet insurance cost averages are in the range of $600 to $12,500 per vehicle, depending on the types of vehicles in your fleet. This can be a significant expense for large fleets and small businesses alike. Anything you can do to lower this cost while still maintaining good insurance coverage is going to make a positive impact on your fleet’s budget. With potential savings on the table, it’s no wonder that many fleets are turning to GPS tracking to help lower their fleet insurance rates.

Why GPS Tracking Effects Fleet Insurance Rates

Insurance companies base their rates on your fleet’s liability exposure. If they believe there’s a higher risk that your fleet will file a claim, you’ll likely be forced to pay higher premiums.There are a few ways that GPS tracking can lower liabilities related to your fleet. Most commercial fleet insurance companies will then pass some of the savings on to you in the form of reduced commercial fleet insurance cost.

A good fleet tracker makes it much easier to recover fleet vehicles and other large assets in the event of a theft. According to the Insurance Information Institute, the average dollar loss per motor vehicle theft is about $8,407, but that doesn’t tell the whole story. For a commercial vehicle, in addition to the cost of the vehicle, you have to include the cost of any cargo or equipment as well as the loss of revenue as you seek to replace the vehicle. This can be a major concern for insurers. With GPS tracking, you can keep tabs on vehicle location at all times. Most often, this leads to quick recovery and relatively minor costs related to theft.

GPS tracking also enhances fleet safety, translating to fewer accident-related claims. A good GPS tracker will help you spot unsafe driving behaviors like speeding or hard braking, soyou can address these problems with your drivers before an accident occurs. A good safety record reflects well in the eyes of fleet insurance companies. After all, if your fleet is less likely to have accidents, they won’t have to pay out as many claims.

The above reasons clearly illustrate how GPS tracking can save you money on fleet insurance, but there are some others that may not be immediately apparent. First, your fleet will be more efficient with good GPS tracking and routing, meaning you can do more work with fewer vehicles. Fewer vehicles to insure means lower premiums.

Full-featured GPS trackers can also provide proof of compliance with the ELD Mandate and DVIR regulations. When used in conjunction with GPS dashcam technology, these trackers can also provide video evidence to exonerate your drivers should they be involved in an accident that is not their fault. All of this means you pay less for fleet vehicle insurance.

How to Lower Your Commercial Fleet Insurance Cost

Commercial fleet insurance is a complex business. You may not experience significant savings immediately, but with a bit of effort, you can maximize them over time.

The most important thing you can do to lower your commercial fleet insurance cost is to build a culture of safety within your fleet. Programs like safe driver score rewards can help make this fun and competitive. A good fleet GPS program may also offer custom-tailored training options to help each driver maintain the best safety rating.

Once you’ve implemented a safe driving program, monitor your telematics. Soon, you’ll begin to see data that reflects your safety improvements. Once your reports improve sufficiently, be sure to call your insurance agent. Armed with proof that your fleet is becoming safer, you may be able to negotiate a lower rate for your fleet insurance.

Before making the call, gather some information. You’ll need to know how many miles your fleet drives in a given year. You’ll also want to present data showing how each of your drivers is improving and describe the coaching or training programs you’ve implemented. If your GPS telematics system allows, you might also want to provide your insurer with direct access to your safety data and statistics. If your safety has improved to the point that you haven’t had a claim in a while, inquire about a no claims discount, available from many companies. Other factors that may help are offering annual payments instead of monthly if feasible, maintaining good business credit, and bundling your fleet insurance with other commercial insurance policies where applicable.

Not sure if your GPS fleet tracking software offers the features needed to improve your fleet’s safety and lower your fleet insurance premiums? Get in touch with Azuga. With our safe driver rewards, Azuga Coach personalized online safety coaching, and SafetyCam video monitoring, improving safety is a breeze.