When a business is trying to budget how much they should be spending on insurance, the costs can add up quickly. If there were a way to be in control of more of the factors that calculate that cost, there’s no telling how much businesses could be saving. Thankfully, with the help of fleet telematics, businesses can take that control and lower their costs drastically.
Here are four ways that using fleet telematics can change commercial insurance rates for the better.
1. Risk Models Will Change
When you implement telematics, you can change the way that you calculated risk in the past. Insurance company risk models were restricted by the limited data available about drivers that could be accessed without expensive background checks. Businesses that wanted to insure their drivers struggled to know how risky their drivers’ behaviors were.
With telematics, drivers’ behavior can be measured and viewed in real time. You can see how your drivers perform, even if they’ve got a great driving record. If you have great drivers, usage-based insurance can save you thousands or more every year.
By watching speeding rates, they can measure your drivers’ level of risk-taking. If there’s a lot of rapid acceleration and hard braking, they’ll know whether or not this driver is an insurance risk.
If you’re trying to pay lower premiums and you know you have safe drivers, telematics can help you save. You’ll save money on insurance by controlling bad driving habits, plus reduce the risk of accidents..
2. Reshape Your Safety Initiatives
Every company has a set of safety initiatives that they try to implement in order to lower the risks that they take. The idea of improving safety to lower your driving risks is a smart concept, but with telematics, you can take things to the next level.
Telematics puts an exact price on how much you save when you improve your fleet safety. You can take the safety regulations that you abide by one step further. Plus, you can hone and shape them so that they match the way that your drivers react.
When insurance firms partner with telematics providers, they’re helping to reduce costs for businesses. By working together, commercial insurance can be more accessible. Thus, less crippling for small businesses while organized to the needs of larger enterprises.
Businesses of every size understand the need for safety beyond figures on their insurance contract. Telematics can help them to make the most of their policy and maintain the safety of their staff and everyone else on the road.
3. Cost Savings
One of the reasons that consumers will avoid dealing with telematics is that adoption of new technology is expensive. When you need to manage a tight budget, implementing and training on new technology can be an investment that’s too hard to make.
Our NO-COST telematics insurance program saves you money with discounts, free telematics devices and no monthly fees.
While this technology could make significant reductions to cost in the end, another bill today might be enough of a turn-off.
Fleet managers and businesses need to understand the cost savings down the road. By managing fuel, labor, and maintenance of their fleet, they could be saving thousands every week. While telematics software might be intimidating, the right training can show what kind of ROI a business can expect.
4. It Helps Businesses Stay Competitive
The use of telematics is nearing a tipping point. With implementation somewhere close to half of all commercial vehicles, once its usage goes over the halfway point, it’ll be a necessity for companies. If two companies are otherwise equal, it’s the one using telematics that will be poised to take a larger bite out of the market.
With adoption growing steadily each year, there are no signs of it slowing down. As telematics becomes a commonplace practice, the hurdles to its adoption will be quickly eliminated.
We saw how the use of desktop computers changed industries around the country. It’s not far-fetched to consider the adoption of telematics as another similar technological wave that can have just as much of an impact.
An office without computers seems unimaginable at this point. Soon, fleet telematics will be a natural component of running any kind of delivery or distribution fleet. The information and data that they can provide might even make it hard to go back to a time without telematics.
Manual fleet management is challenging no matter how big or small an operation is. With the help of fleet telematics, cost, speed, and efficiency can be managed to optimize customer experiences. When customers are happy and insurance rates can go down, there could be savings and discounts that businesses will only learn about after implementing this technology.
A Fleet Telematics Program Is A Great Advantage For A Business
The way that fleet telematics can revolutionize how much companies pay for commercial insurance could change the way that they do business. Instead of seeing insurance as an irritant, it can now be directly connected to needs and managed down to the dollar.
"Our clients have the security knowing they are paying the RIGHT price for the RIGHT insurance coverage. You will be confident that you made the RIGHT decisions for your insurance policies."
Richie Buchanan is owner of ISU Insurance and Investment Group. Richie is married to Susan and is the father of Jackson (5) and Evie (3). He started in insurance in 2001. Since then he has helped 1000's of clients just like you find the right price and coverage.