Insurance is often considered a necessary evil. As much as you might hate the amount you spend on it, the costs of operating without insurance are much higher.
Though you can’t stop paying for car insurance, you may be able to improve the price. Telematics is the best way to lower your insurance costs and maintain your fleet’s budget.
Using telematics to lower car insurance costs
Insurance companies consider several factors when setting your premiums. As you’ll see below, you can use fleet telematics to improve these factors among your drivers. You can negotiate a better rate and avoid preventable increases in the future.
Improve driver safety
Insurance companies want to keep their costs as low as possible. To do so, they reward drivers who use safe driving to minimize their chances of getting in expensive accidents. Since drivers who speed, drive aggressively, or break road laws are more likely to get in crashes, they get higher premiums.
But how do insurance companies know who’s a bad driver?
They evaluate driving records. Anyone who has received a ticket or been in an accident is considered to be a greater risk. Every additional violation adds more to their premiums. Eventually, your insurance provider may refuse to cover these drivers, leaving you in an even bigger mess.
Telematics can help you track and identify the risky behaviors that may lead to higher premiums. As you understand more about these issues, you can address them specifically and effectively. Your drivers will operate more safely and keep your insurance costs at a price you can afford.
When one of your fleet drivers causes an accident, your insurance rate will likely go up. Accidents that aren’t your fault don’t have the same affect — if you can prove it. If you can’t show that the other driver was at fault, however, you may still get the blame.
Telematics offers two valuable tools that can protect you from this scenario. Many solutions include dash cameras that record everything that happens, including the accident. This footage can support your side of the story and prevent unfair price hikes.
Protect your drivers and your bottom line with fleet GPS installs today!