Your Business Fleet: Can GPS Technology Lower Your Costs?

Business insurance providers often offer discounts for safe, secure operating facilities. Facility safety doesn’t stop at the door, however. Today’s business owners are outfitting their commercial fleets with safety technology. This leads to their saving money on their insurance plans in the process.

How Does GPS Tracking Lower Policy Costs?

Insurance companies usually love GPS tracking systems. GPS tracking systems reduce vehicle thefts. Without GPS tracking, it can take police departments weeks to locate stolen vehicles. In most cases, the authorities never find these vehicles. This might result in the commercial auto insurance company paying a large claim.

GPS systems usually make it easier to recover a vehicle. This can save your policy provider money. If your business insurance provider knows you’re covering a recoverable fleet, they might be generous with policy pricing.

The Benefits of Economical Driving

GPS systems reduce fleet fuel usage, too. Each mile per hour above 50 mph, reportedly, boosts fuel consumption by roughly 1.5 percent. GPS tracking systems report vehicle activity immediately, alerting fleet managers of over-consumption.

While this feature provides immediate economical benefits, insurance providers are becoming more lenient to cost-efficient fleet owners. Many insurers now consider fuel maintenance and employer overtime when issuing policies. If your premises is productive and economical, they might decide to offer it better rates.

Safety First

GPS tracking also improves driver behavior. Many accidents—and, subsequently, insurance claims—are caused by reckless driving. If your fleets drivers know that GPS systems are monitoring them, they’ll be less likely to speed. They’ll be less likely to create costly claims.

This attitude carries over into general use safety. The more you use a vehicle, the higher the chance of an accident. Your business insurance provider knows this. They appreciate a business capable of using a fleet sparingly. Even if you require constant support, you can still display a tactical understanding of fuel economy, safety and driving risks.

Maintenance is a Factor, Too

Modern GPS tracking services can notify fleet owners of regular maintenance needs, including:

  • Oil changes
  • Tire rotations
  • Engine maintenance
Understandably, an ounce of prevention provides a ton of safety. Once more: Lower risks equate to lower fleet insurance costs. By implementing a GPS system, you can often reduce your fleet’s insurance premium.

 

If you have any questions, contact your provider. The ins and outs of commercial fleet insurance can seem complex, but they’re intuitive once you prioritize safety. Put your fleet, your business and your employees first.