GPS Tracking Insurance Discounts
We get asked all the time if installing GPS fleet tracking will reduce a company’s insurance premium. The short answer is generally “yes”. In some cases by as much as 15% or more.
Insurance companies are motivated to reduce risk and GPS tracking devices are all about reducing risk. Thefts and accidents lead to higher insurance rates. A live GPS vehicle tracking system, such as ClearPathGPS, will help you address both of these risks.
Quick Recovery of a Stolen Vehicle
With GPS vehicle tracking devices, if your truck is stolen, you simply go online and see where it is. Even if the thief is still driving the vehicle you can literally watch them travel down the road and help the police make a quick recovery.
With Geofences and Alerts, if a vehicle is stolen from your yard after hours, the system can send an alert to your phone letting you know one of your vehicles is moving when it shouldn’t be. The tracking devices are small and installed covertly with no external antennas. A thief won’t even know the tracking device is there, so won’t have any warning that they are being tracked. Companies such as AAA, USAA, Travelers and Liberty Mutual will offer GPS tracking insurance discounts based on their theft recovery capabilities.
Encourages Safe Driving
In 2010 Commercial Vehicle Crashes resulted in $257.7 billion dollars in costs, and the average non-fatal vehicle crash with injuries cost employers $61,600. Reducing excessive speeding and unauthorized use of company vehicles reduces this risk significantly.
People are more conscientious about their driving when they know they are being monitored. We call this the “halo” effect. When a company tells drivers they are being tracked, you can expect 80% of the bad behaviors to disappear almost immediately.
However, an ongoing program of driving behavior review and coaching are important to maintaining the benefits from a GPS tracking system. For many insurance companies, showing that you are using the data to coach bad behavior and improve safety are an important part in maintaining the discounts. You should always check with your broker about programs and GPS tracking insurance discounts available to you under your policy.
While GPS tracking will help you save significant money on fuel, maintenance and efficiency, the GPS tracking insurance discounts you receive can be a nice added bonus to your business and help reward you for reducing everyone’s risk.