Vehicle insurance is a major expense, but it doesn’t have to be. GPS tracking devices reduce fleet premiums by monitoring driver behavior, reducing vehicle theft, and promoting proactive maintenance schedules.
These actions reduce accident risks, lowering insurance claims and increasing savings. In addition, telematics technology can help companies track vehicle usage and engine hours to save on fuel costs.
1. Reduce Unauthorized Use
GPS tracking gives managers a comprehensive view of their entire fleet, allowing them to streamline operations and increase profitability. It also allows them to reduce fuel consumption and maintenance costs while increasing driver safety and efficiency. This all translates into lower insurance premiums for their business.
For example, a GPS system that reports all vehicle activity can alert managers by email and cell phone when a car leaves the designated work area or exceeds posted speed limits. By monitoring these activities, managers can encourage employees to be more cautious and help them avoid costly violations that can raise insurance rates.
In addition, a GPS system can be programmed to lock the vehicle’s door, disable the starter, and send an alarm notification if it is moved from a designated parking spot. This can deter thieves and may qualify a company for an insurance discount from its insurer. In many cases, small businesses can qualify for discounted plans that reflect the use of telematics vehicle tracking technology to prevent theft and other costly incidents.
GPS systems also always track the exact location of vehicles and equipment. This real-time information is a valuable tool in the event of an accident or other incident and can help facilitate faster response times. This can save time and money and is especially helpful when dealing with a large number of customers or if there is an emergency situation on an oil rig.
Lastly, most GPS tracking systems allow businesses to set calendar templates for expected vehicle and equipment use, enabling them to quickly identify unauthorized vehicle use or unusual activity. Combined with other security features (such as the ability to remotely shut off the engine and activate the alarm), this can be an effective deterrent against employee abuse and theft of the company’s assets.
A GPS tracking system can also be used to verify mileage claims, improve payroll and back-office processes, and enhance customer service. This helps companies meet federal compliance requirements, stay on top of their customer accounts, build trust and loyalty, and improve overall operational efficiency.
2. Reduce Accidents
GPS tracking can help you save on fleet insurance by providing evidence that your drivers are safe on the road. Insurance companies look at many factors when determining the premiums for your company vehicles, including driver safety history, vehicle maintenance records, and more. Installing a GPS device in your fleet can improve driver safety, prevent theft, and discourage vehicle misuse, all of which can lead to lower insurance rates for your business.
Insurers also consider the mileage that your employees rack up in a vehicle. With a GPS system, you can track and record the exact miles driven for every trip your employees make in a company car or truck. This information is useful to provide to your insurance provider because it can help reduce over-accurate mileage claims and prevent fraud.
With GPS tracking, you can monitor your employees’ driving habits and coach them on safer practices on the road. For example, if a driver is constantly speeding, you can use the telematics data from the tracking device to alert them to their risky behaviors. Then, you can work with them to modify their driving behavior and save money on your insurance premiums.
Additionally, if your drivers are using the company vehicle for personal reasons, you can use the GPS tracking data to monitor their location and encourage them to only drive the vehicle on business-related tasks. This will prevent accidents, which can increase your insurance premiums, and it may even motivate your employees to stay safe on the road for your company.
The cost of a GPS tracking device is relatively low, and the benefits are significant. In addition to savings on fuel costs, you can eliminate unnecessary paperwork and maximize the utilization of your fleet vehicles. This will allow you to save on both your fleet insurance and general operating expenses.
If you’re looking to save on your company’s insurance premiums, contact us today for a free consultation. We can help you find the right GPS solution to meet your needs and lower your insurance costs. We offer a range of GPS products to improve your fleet’s efficiency, prevent accidents and theft, and more.
3. Reduce Fuel Consumption
Many fleet owners find that GPS tracking decreases their insurance premiums by reducing the amount of fuel each vehicle consumes. This is because telematics data shows how fast the driver is going and helps coach them to improve their driving habits. According to some research, drivers using telematics are up to 20 percent less likely to get into an accident.
Additionally, many insurance providers offer discounts on vehicles equipped with GPS because it demonstrates the business’s commitment to safety and good fleet management. This is because the technology can help prevent theft, improve driver behavior, discourage vehicle misuse, and promote proactive maintenance schedules.
While these benefits of GPS tracking are important, it is also crucial to remember that a number of other factors determine insurance premiums. For example, a fleet primarily driven in large urban centers may pay higher premiums than those mainly used on rural roads. Also, the make and model of each vehicle can affect insurance premiums as well as any safety features that might be installed in them.
In addition to saving on fuel costs, a GPS vehicle tracking system can reduce the risk of unauthorized use by deterring thieves from targeting your company vehicles. Since stealing a car or truck that can be tracked is much harder, people are less likely to steal them and will usually move on to an easier target.
Another way to save on fuel is by reducing long idle times. Our customer Brazos Logistics was able to cut its vehicle idling by up to 33% after implementing a GPS system that alerted them to when their drivers were napping or eating while parked on the side of the road. This type of idling results in unnecessary fuel consumption, engine wear and tear, and missed shipment deadlines.
Finally, a GPS system can also improve DOT compliance and maintenance by helping companies keep track of driver logs, inspection records, and CSA scores. In many cases, these factors are used to calculate a fleet’s CSA score, which can affect the cost of its insurance premiums. With a GPS tracking system, businesses can easily record and store all of this information to show the insurer that they are keeping their trucks in good condition, which will lead to lower insurance premiums.
4. Improve Vehicle Maintenance
Using GPS to monitor driver behavior helps you reduce insurance costs by reducing unauthorized use. For example, before tracking systems were available, drivers often took company vehicles out for non-business-related errands such as going shopping or picking up lunch during a work break. These activities can increase vehicle wear and tear and increase mileage, which drives up premiums. GPS tracking systems monitor driving behavior such as speeding, rapid acceleration, and harsh braking. They also track driver routes and make it easy for managers to identify risky drivers, encourage safe driving, and save on insurance.
In addition to reducing unauthorized usage, fleet tracking technology can help prevent theft. Many insurers provide fleet insurance discounts for businesses that install GPS tracking devices in their vehicles. When drivers know that their movements are being monitored, they are less likely to take vehicles out for personal reasons or engage in other dangerous behaviors such as running red lights and swerving.
Tracking systems can also improve vehicle maintenance by providing managers with detailed reporting on when fleet vehicles will require routine maintenance. This information will allow managers to schedule maintenance before a breakdown occurs, which is another factor that can lower insurance premiums.
GPS trackers accurately record mileage for each vehicle and fleet, making verifying mileage claims easy for insurance providers. Insurance agents are more likely to be willing to negotiate when you can provide data-backed verification of your claims. GPS tracking systems can also monitor driver logs, compliance reports, and maintenance details to show your commitment to safety and responsible fleet management.
In addition to saving money on premiums, GPS tracking for company vehicles can also reduce other operational expenses, such as fuel costs and maintenance costs. Implementing a telematics solution can streamline operations and reduce employee time spent on administrative tasks. In the long run, this will translate into higher productivity and reduced operating costs for your business. Contact us today to learn more about how tracking systems can improve your operations and bottom line. Our team is ready to answer any questions you may have about our industry-leading products.
