Top 5 Ways GPS Trackers Lower Insurance Premiums - ZenduIT
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Top 5 Ways GPS Trackers Lower Insurance Premiums

February 16, 2023

When it comes to insuring commercial vehicle fleets, one of the key factors that insurance companies take into consideration is the level of risk associated with the fleet. Risks such as accidents, theft, and other incidents can result in costly claims, which in turn can drive up insurance premiums for fleet owners. But thanks to GPS trackers, fleet managers now have a powerful tool at their disposal that can help to mitigate these risks and reduce insurance costs.

GPS tracking has emerged as a popular solution among businesses with large vehicle fleets. By providing real-time monitoring of vehicles and drivers, GPS trackers allow fleet managers to stay on top of their operations and take proactive steps to prevent accidents and theft. As a result, insurance providers are increasingly offering discounts of 25-35% or more for businesses that have implemented GPS tracking across their fleet.

In the following article, we will take a closer look at the top 5 ways in which GPS tracking can help to decrease insurance premiums for fleet companies. From improved safety to reduced theft and more accurate billing, there are a variety of benefits that GPS tracking can provide for fleet managers looking to lower their insurance costs.

1. Reduces the risk of vehicle theft-related claims

GPS trackers can help prevent vehicle theft-related insurance claims by making it easier to recover stolen vehicles. If a tracked vehicle is reported stolen, the owner and law enforcement are able to pinpoint its exact location using real-time tracking data. This ensures that the vehicle can be recovered quickly, reducing the chances of costly repairs or replacements. 

GPS trackers also provide an added layer of security, as they are designed to alert owners when their vehicles move without permission. As such, owners can take action before their vehicle is out of reach and a claim must be filed.

In addition, GPS tracking devices provide a valuable source of data for insurers during the claims process. Insurers have access to historical data from the tracker which provides detailed information about the vehicle’s movements, such as its speed and location history. This helps insurers verify ownership and track the whereabouts of a stolen vehicle in real-time, reducing fraudulent claims and ensuring an accurate outcome for all parties involved. 

As such, GPS tracking devices can help reduce both the risk of theft-related insurance claims and the cost associated with them.

2. Improve Driver Behaviour

Studies have shown that a significant percentage of drivers admit to regularly breaking the speed limit. Adopting GPS tracking technology can encourage drivers to adopt safer habits on the road. 

GPS trackers can be used to monitor driver behaviour in a variety of ways. For example, they can detect speeding, sudden acceleration and braking, or even unauthorized stops or routes. A GPS tracker can measure how many miles are driven each day and alert employers if drivers are taking longer routes than necessary.

Additionally, a GPS tracker can help ensure that drivers adhere to the Hours of Service (HOS) regulations set by the Federal Motor Carrier Safety Administration (FMCSA). By tracking driver activity, companies can save money on fuel costs while simultaneously improving safety standards for their fleet vehicles.

In addition to increasing safety and lowering operating costs, GPS trackers can also help improve employee performance. With real-time data about employee driving habits, management can identify areas for improvement and reward drivers for their good behaviour.

This encourages employees to make safer driving decisions, which can lead to lower insurance costs and fewer accidents. Additionally, GPS tracking systems enable employers to monitor the maintenance of their vehicles, ensuring that they are properly cared for and serviced regularly.

Using a GPS tracker is an effective way to improve driver behaviour and safety in any fleet setting. With increased visibility into driver activity and real-time data on road conditions, companies can prevent costly errors while keeping their employees safe. 

GPS tracking solutions have been designed to be flexible and easy-to-use, allowing companies of all sizes to maximize their benefits, including improved efficiency, cost savings, enhanced security, better employee performance, and overall improved safety for everyone on the road. 

3. Prevents Fleet Vehicle Misuse

GPS trackers are an effective tool in preventing commercial vehicle misuse. According to a survey conducted by Geotab, a global leader in telematics technology, 35% of fleet managers reported that GPS tracking has helped them reduce unauthorized vehicle use, such as personal errands or off-hours driving. 

GPS tracking also provides real-time location data, allowing fleet managers to monitor driver behaviour and ensure that vehicles are being used for their intended purpose. This can lead to increased productivity and cost savings, as well as improved safety on the road. In addition, GPS tracking can help recover stolen vehicles quickly, reducing the financial impact of theft on businesses.

With the benefits of GPS tracking, it’s no wonder that more and more commercial fleets are adopting this technology to prevent misuse and improve their operations.

The use of GPS trackers can potentially lead to improved insurance premiums for commercial vehicle owners. Insurance companies often consider factors such as vehicle usage and driver behaviour when determining insurance premiums. 

By using GPS tracking technology to monitor and prevent commercial vehicle misuse, fleet managers can demonstrate to insurance providers that they are taking steps to reduce risk and improve safety on the road. This can result in lower insurance premiums and reduced overall insurance costs for businesses. 

According to Work Truck Magazine, the reality is that around 80% of car-truck collisions are caused by the car. However, because of the truck’s larger size and greater potential for damage, truck drivers are frequently and unjustly blamed. This highlights the crucial importance of technology-based evidence that can clear the truck companies of any wrongdoing.

4. Promotes proactive maintenance schedules

GPS trackers are essential tools for successfully managing modern fleets. Advanced telematics technology can be used to create proactive maintenance schedules tailored specifically for each vehicle in the fleet. These schedules can be based on the actual usage of each vehicle, making them more accurate than traditional set-interval maintenance plans.

This proactive approach to maintenance can significantly reduce downtime, improve vehicle performance, and extend the lifespan of vehicles, ultimately leading to reduced maintenance costs. 

Additionally, by reducing the likelihood of breakdowns or accidents caused by poor vehicle maintenance, proactive maintenance can lead to improved safety on the road. According to a study by Verizon Connect, a provider of fleet management solutions, proactive maintenance can help reduce vehicle breakdowns by up to 90% and cut maintenance costs by up to 14%.

In turn, these improvements can lead to lower insurance premiums, as insurance providers often consider vehicle maintenance and safety practices when determining premiums.

In fact, according to a survey by HUB International, a global insurance brokerage, 60% of fleet managers reported that proactive maintenance practices have resulted in lower insurance premiums for their business.

Therefore, GPS trackers not only promote proactive maintenance schedules, but also help businesses reduce costs and improve safety on the road, ultimately leading to lower insurance premiums.

5. Lowering Accident Risk

GPS tracking can help lower accident risk in commercial fleets by promoting safer driving habits and providing real-time visibility into driver behaviour. By monitoring vehicle speed, acceleration, and braking, fleet managers can identify and address potentially unsafe driving practices, such as speeding or hard braking, before they lead to accidents. 

According to a study by the National Highway Traffic Safety Administration (NHTSA), speeding is a factor in 26% of all fatal crashes in the United States. By using GPS tracking to monitor and discourage speeding, fleet managers can significantly reduce the risk of accidents and improve overall safety on the road.

Moreover, GPS tracking can also impact fleet insurance by reducing the number and severity of accidents. Insurance companies often consider driver behaviour and safety practices when determining insurance premiums, and businesses with safer driving records may be eligible for lower premiums.

According to a study by Verizon, businesses that use GPS tracking technology to improve driver safety and reduce accidents may be eligible for up to 15% lower insurance premiums.

In addition to reducing accident risk, GPS tracking can also help businesses recover stolen vehicles quickly, minimizing the financial impact of theft on their operations. By using GPS tracking to monitor vehicle location and movement, fleet managers can quickly identify and recover stolen vehicles, reducing the risk of financial losses and insurance claims.

The advantages of GPS trackers as a safety measure are numerous and far-reaching. They enable drivers to be updated on their routes in real time, have access to detailed reports on vehicle activity, receive alerts for dangerous or unfamiliar areas, and monitor fleet performance remotely.

All of which can help reduce accident risk by providing drivers with the necessary information they need to make informed decisions and stay safe on the road. 

Ultimately, GPS trackers are an invaluable tool for ensuring that vehicles are being operated safely and efficiently.

With their increasing popularity among both professional and personal drivers, it is clear that GPS tracking systems will continue to play an important role in promoting safer driving habits moving forward.

Does installing a GPS tracking system qualify for an insurance discount? 

Installing a GPS tracking system in a fleet can potentially qualify businesses for an insurance discount. Insurance companies often consider a variety of factors when determining premiums, including driver behaviour, vehicle usage, and maintenance practices.

GPS tracking technology can help businesses address these factors and demonstrate to insurance providers that they are taking steps to reduce risk and improve safety on the road.

Many insurance providers offer discounts to businesses that use GPS tracking technology to promote safer driving practices and reduce the risk of accidents. Businesses that use GPS tracking technology to improve driver safety and reduce accidents may be eligible for up to 15% lower insurance premiums.

A survey by HUB International, a global insurance brokerage, found that 60% of fleet managers reported that proactive maintenance practices, which can be facilitated by GPS tracking, have resulted in lower insurance premiums for their business.

However, it’s important to note that the use of GPS tracking technology is not a guarantee for insurance discounts, as premiums are ultimately determined by a variety of factors beyond just GPS tracking. Insurance providers may also consider other factors such as driving history, location, and type of vehicle when determining premiums.

Nonetheless, the use of GPS tracking technology can demonstrate a commitment to safety and responsible fleet management, which can ultimately lead to lower insurance costs for businesses.

If you’re considering installing a GPS tracking system in your vehicle, it’s worth checking with your insurer to see if they offer any sort of discount or incentive. You may also want to investigate other telematics devices that are available to monitor your driving and provide feedback on how to improve. 

In conclusion, installing a GPS tracking system in a fleet can potentially qualify businesses for an insurance discount by promoting safer driving practices, reducing accidents, and improving maintenance practices.

While the use of GPS tracking technology is not a guarantee for insurance discounts, it can help businesses reduce risk and demonstrate a commitment to safety and responsible fleet management, ultimately leading to potential cost savings.

What information is required to receive a GPS tracking discount from insurance companies?

Insurance companies may offer a GPS tracking discount to customers who meet certain criteria. To qualify for this discount, customers must provide the following information:

  • Vehicle Identification Number (VIN) and make/model of the vehicle being tracked
  • Type of GPS tracking device being used
  • Information regarding any additional safety features installed in the vehicle
  • Details about any voluntary usage reporting customers may be willing to provide
  • Information on any additional security measures that have been taken, such as an alarm system or anti theft device.

Discounts are designed to reward customers for taking proactive measures to increase the safety of their vehicle. In some cases, it can even result in significant cost savings on premiums over the long term. By providing this information, customers may qualify for a GPS tracking discount from their insurance company. 

Remember to always consult with your insurance provider for more information about GPS tracking discounts and any other available discounts that may be applicable to you. Knowing what is required ahead of time will help you take advantage of available savings and ensure that your vehicle is always secure.

Conclusion

GPS tracking technology is an invaluable tool for fleet companies looking to reduce their insurance premiums. By making use of a GPS-based system, businesses can decrease the risk of vehicle theft, improve driver behaviour, prevent vehicle misuse and promote proactive maintenance schedules – all of which are excellent ways to lower accident risk and reduce claims costs.

By implementing comprehensive GPS tracking solutions in its fleet vehicles, any business can enjoy huge savings on its insurance premiums. Investing in GPS tracking is a great way to protect your business and ensure that all of your vehicles are safe, secure, and well-maintained, now and well into the future. Contact us today to see how Zenduit can help you with a GPS tracking solution.

*Special Note: To find out if your fleet is eligible for these savings, it’s a good idea to reach out to your insurance provider and ask about the discounts available for telematics. Of course, the amount of savings you can expect will vary depending on the location and type of business you operate. However, if your fleet has a strong safety program and a track record of safe driving, implementing GPS tracking and a driver safety program could potentially lead to even greater savings.

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