Real-time GPS tracking and Field Service Management (FSM) software are no longer tools that are only available and for large fleets. These solutions have become more readily available and more cost-effective for fleets of any size. While there are many advantages to implementing these telematics tools, one notable advantage is reducing insurance costs for policyholders.
While insurance is a necessary line item in every budget, no one wants to spend more than they have to. Utilizing FSM software and GPS will help reduce delivery driver insurance costs and get the most from telematics solutions. Five ways FSM software and GPS can reduce insurance costs
- Reduces theft
According to the National Highway Traffic Safety Administration (NHTSA), more than 770,000 drivers have their vehicles stolen each year. With GPS tracking becoming a more popular tool, it is easy to understand how it can help to reduce theft by improving recovery.
If a vehicle or another asset is stolen, having GPS tracking can help locate and recover it, thus preventing large claims that the insurance would have to payout. When insureds have this tool, insurance companies can offer anti-theft device discounts, which will reduce the overall insurance cost.
- Reduces unauthorized or misuse of vehicles
Prior to tracking vehicles using GPS, it was much more difficult to identify and prove the use of company vehicles for personal use. When employees utilize company vehicles, they are active on the road for more time and over further distances, which increases the likelihood of accidents, not to mention the increased fuel and maintenance costs. Knowing that vehicles are only being used for company business assures the insurance companies that those additional miles won’t be driven, resulting in improved insurance rates.
- Encourages safer driving behaviors
Monitored drivers are safer drivers. It is just that simple. Utilizing FSM software and GPS, problematic driving behaviors are recognized and recorded. Behaviors such as speeding, hard stops, or aggressive acceleration trigger alerts. Managers can coach drivers about these behaviors and reduce the occurrence. Safer driving behaviors reduce the risk of accidents and citations, both of which garner savings in your insurance costs.
- Ensures timely preventive maintenance
Vehicles that are well maintained are also safer vehicles. By utilizing telematics and GPS monitoring, real-time alerts are sent to notify managers of maintenance issues or alert them that preventive maintenance is due. A maintained vehicle is less likely to blow a tire or have a mechanical failure that results in an accident.
- Records the video
Perhaps one of the most exciting additions to the FSM tools is the dual-facing dashcam. The dashcam records accidents along with the moments before and after. This is so valuable in cases where the fault is in question. It provides indisputable evidence of the events as they happened and records the driver’s attempts to avoid the accident. This evidence can be used in lawsuits and claims and can help determine fault. Reducing accidents where you are at fault will absolutely keep insurance costs down.
Using fleet management software and GPS can provide multiple benefits. Along with improving safety, reducing fuel costs, optimizing driver schedules, and improving pay practices, they can also reduce a fleet’s insurance costs. Efforts that improve overall safety and reduce the risk of accidents can translate to real savings.