Business fleets are looking to reduce insurance costs by using telematics / vehicle tracking. Technology is being deployed more and more frequently as a tool in the truck insurance market for generating more accurate and timely data concerning the risk profiles of carriers. But now more fleets are also recognising technology as a way to lower their insurance premiums.
Surveys conducted by LexisNexis Risk Solutions have backed this up as it determined that consumers and fleet managers alike are more willing to adopt usage-based insurance (UBI) programs linked to vehicle data generated by telematics systems.
Not surprisingly, price and savings are the top factors driving the fleet managers to engage in UBI programs – all despite what LexisNexis called “significantly” less insurer marketing for UBI, such programs maintaining a relatively strong “awareness factor” of around 25% of the fleet managers polled.
The LexisNexis study also found that smartphones, which present a low cost entry to adopting an UBI program, are appealing since most costs are paid for by employers, while employee barriers related to data cost and usage related to their personal smartphones is relatively small. In addition, it revealed that Commercial fleet managers are also receptive to UBI programmes that incorporate mobile technology as 73% of small fleet drivers have smartphones.
Unsurprisingly the current trend to install cameras into vehicles recording the driven journey as well as the tracking (speed of vehicle, driver behaviour etc) has increased the trend and insurers are becoming more and more open to discounts and lower premiums. Visual incident evidence can be available to the insurer almost immediately reducing the cost and risk to the insurer and most of them are happy to pass that on. It is always worth speaking to your insurance agent to check!
Image source: www.fleetowner.com