How Can GPS Tracking Devices Lower Fleet Insurance Costs?

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Surveys suggest that vehicles fitted with GPS tracking devices tend to get discounts in their insurance premiums. These discounts can range from 5% to 25% depending on various factors. Such discounts can make a big difference when you operate a fleet of vehicles. Insurance companies prefer having clients who can demonstrate a history of managing risks using the right policies.

Find out how GPS trackers can lower your insurance premiums and help your business save more.

Factors that Affect Your Fleet Insurance Premiums

When it comes to companies that operate a fleet, insurers consider various factors to calculate insurance premiums. Besides, the calculation varies between different insurance carriers. The most common factors that affect premiums include: 

  • Location: Fleets operating in urban areas generally pay higher premiums than those operating in suburbs. Besides, having secured storage for your vehicles when not in use helps lower premiums.
  • Ownership: When you rent or lease fleet vehicles, it increases risks. This leads to an increase in premiums.
  • Vehicle Type: If your fleet comprises vehicles having high safety ratings, you can expect to have your premiums lowered. Thus, vehicle make and model also affect insurance costs. The vehicle’s value is also an important factor.
  • Driving Behavior: Implementing policies promoting safe driving habits is seen by insurance companies as a positive signal. When your company has a history of very few claims and hiring safe drivers, it can further help you attract lower premiums.

Deploying other types of advanced technologies to deter theft and vandalism can also help you make a positive impact on your insurance company.

How Do GPS Tracking Devices Influence Insurers?

Deploying GPS tracking systems not only helps improve your fleet’s efficiency, it can also make a positive impact on your insurance premiums. Here are two different ways that GPS tracking systems are seen positively by insurance companies:

Improving Driving Behavior

When drivers know their driving actions are getting monitored, they are more likely to follow safer driving habits. Your insurance company can also access the telematics data on your fleet. This can include data related to:

  • Rapid acceleration
  • Speeding
  • Harsh braking
  • Sharp cornering

This data can be used to create training programs for your drivers to promote safer driving habits. It is reported that drivers operating GPS-tracked vehicles have lesser chances of getting into accidents. Thus, GPS integration can play a crucial role in improving driver and vehicle safety and reducing insurance costs.

Discouraging Vehicle Misuse

Another way GPS vehicle tracking device integration can affect insurance premiums is by discouraging employees from misusing company vehicles. Again, when your drivers know the location and miles of their vehicle are being monitored in real-time, they are less likely to use them for personal purposes. 

Since this decreases unnecessary vehicle mileage, the amount of time your vehicle spends on the road gets reduced. This leads to reduced chances of accidents. Insurance companies prefer servicing companies that take steps to lower all possible risks.

Vehicle Insurance Discounts

Most insurers value GPS fleet tracking systems implementation by their clients and are ready to provide discounts. It is recommended to enquire with your existing insurance provider about their policies for GPS tracking integration into fleet operations.

Conclusion

There are many ways that GPS tracking integration can help you make your fleet operations safer. It is a big step towards managing risk by eliminating unsafe driving habits and unauthorized vehicle usage. Once you implement the system, you can create a history of enforcing safety. Besides, the tracking data can be used to fight off any inaccurate claims.

GPS trackers also make it easier to track and recover stolen fleet vehicles. Embracing the technology not only reduces your insurance premiums but also reduces your fuel consumption and costs. Thus, implementing GPS tracking systems benefits your business in different ways.


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