Implementing a GPS tracking system is an uptick for business owners to monitor their fleets. The insurance company has keyed into this measure in calculating and setting insurance policies. In addition, the device is a way to save money for the insurance company and the vehicle owner.
As a result, insurance companies can easily track vehicles for theft and encourage safe driving and regular checkup. Thus, vehicle trackers are gaining height in recent years as many fleet owners and other vehicles benefit from the savings made on insurance. The vehicle gathers data such as speed, time, location, etc., and the tracker sends such info to the insurance company.
But do companies save money with vehicle trackers? Companies use previous records to assess risk and decision-making, making it easy for better drivers with good fleets to have subsidized commercial fleet insurance. They offer cost assistance that ends up in saving for vehicle owners. Here are reasons insurance companies embrace vehicle trackers and how you can save money embracing them too.
What is Vehicle Tracking?
Vehicle tracking is a system installed on vehicles to monitor basic information. These functions include driver performance, driver performance, mileage, dispatched, and facilities sent to the company. The tool has become a fleet tracking solution offered by Ram tracking and has several other functionalities depending on the company offering the service.
With the desire to increase your hourly production and avoid time waste, fleet tracking can come in handy. The key duty of vehicle tracking goes beyond data gathering; instead, it analyzes the data and seeks possible solutions. Knowing the downtime and setting your schedule to cover the gap can increase your profit and free up time for other jobs. The data collected from the vehicle fleet tracking system, like fuel consumption, driver behavior, and safety, will help make better business decisions. Insurance companies can detect how to maximize assets and save money from claims.
Improved Communication in Insurance
Ram tracking uses vehicle trackers to communicate with drivers on routes. The tool is connected to the vehicle’s communication system to send updates and new assignments to drivers. The message is sent as an SMS to the GPS mapping platform. With this, the driver can easily see the message and avoid improper routes. Plus, the text must not be from employees’ phones. In addition, the system makes your drivers as efficient as possible, encouraging smooth and easy running of the job. Proper communication between dispatch and drivers makes a huge profit for both teams.
The most prominent feature of a vehicle tracking system is its ability to deter theft. The tracker is programmed to send messages and notifications on suspicious behaviors. In addition, it reacts to the situation avoiding accidents and the cost of buying a new vehicle. Besides, the theft prevention feature sends alerts of suspicious behavior or unusual activities in the vehicle fleet. Many insurance companies use different fleet trackers with 4G networks and large coverage areas to remain on the market. Some trackers have features like SOS, emailing system, geofences, and a rule engine.
Enhance Maintenance Practices
The insurance company uses information from well-maintained vehicles to lower the premiums risk because they are safer and hardly break down. Most vehicles have operational issues because they lack regular maintenance and inspections leading to failures and accidents. The negligence causes a significant risk to drivers and insurance companies.
Vehicle tracking is a real-time alert machine that notifies the fleet owner of regular vehicle maintenance. The device telematics your maintenance schedule, giving you more awareness and reducing your fleet’s risk of breakdown or accidents. In addition, it saves you money from discounts and lower premiums.
Safer Driving Habits
The easiest way to monitor your driver’s behavior is by using vehicle tracking. The tracker keeps your driver and other road users safe by reducing accidents. Furthermore, it monitors your driver’s speed, mileage, braking and acceleration, idle time, and working hours. The data provides incentives to encourage the driver to behave when at the wheel. Some vehicle trackers have dash cams which footage used for a claim. This act can stop increasing premiums and costs.
In addition, fleet tracking encourages drivers to use more efficient routes to reduce wear and tear on the vehicle. This tracker provides real-time positioning for owners to track their fleet or trucks anytime. The information helps them change routes via traffic patterns, road conditions, tolls, and regulations. These activities are simple ways to save money and improve customer service. Insurance companies are aware of how creative and better this guidance is for the insured, which can reduce your premiums.
Insurance Cost-Saving Considerations
Insurance companies have specific considerations before insuring a fleet of vehicles and the policy type. These companies can use age, number, previous claims, accidents, and type of fleets before providing insurance. They may also consider a theft recovery GPS tracking system in your fleets.
As a result, fleets that are regularly tracked in real-time are substantially secure. This step helps the insurance company keep an eye on your fleet while reducing your premium. The quality data transmitted from the GPS telematic system is a win-win for both parties. In addition, some vehicle trackers can lock fleets, disable the starter, and other security features. Managing the fleet becomes easier for the insurance company and the business owner.
Should you let your insurance company monitor your fleet?
Insurance tracking is new, and most people have no idea of how it works. The lack of knowledge might make many nervous because the insurance company will be tracking their driving. However, many fleet owners have embraced insurance trackers because of their legitimacy and fairness. In addition, it also saves both parties money while helping you monitor your fleet drivers.
These companies encrypt their data to prevent it from hackers and ensure it is legally used for the proper purpose. However, if you’re skeptical of accepting the innovation, research the pros and cons of the device to insurance and the fleet owner.
A vehicle tracking system is not a way for insurance firms to spy on you. It can benefit both parties – you and the insurance company. So, consider getting a vehicle tracker for people looking forward to bringing down their insurance fees.