When you're in business, there are two ways to make more money — increase revenue or reduce expenses. In a down economy or when new business is in short supply, cutting back on expenses is a logical choice for fleets looking to stay competitive.
One significant operating cost for fleets is insurance; and as your fleet expands, those costs only increase. How can you pay less for insurance while not reducing your coverage? The answer lies in GPS fleet tracking.
There are two primary ways that GPS fleet tracking can help cut your insurance costs — asset recovery and driver behavior.
GPS tracking increases recovery of stolen goods
Recovering a stolen fleet vehicle or trailer is difficult. Law enforcement often gives these cases low priority, so fleet operators write off their losses and file an insurance claim.
This isn't an optimal outcome for the insurance company (which has to pay for the loss) or the fleet operator, which is now faced with a potential premium increase.
But GPS tracking technology, such as that offered by Verizon Connect, has made it much easier and more straightforward to recover stolen equipment. The increased recovery rate of stolen goods enabled by GPS technology has led many insurance companies to offer sizeable discounts to fleet owners who use these systems, which can be classified as anti-theft devices. In fact, in some states it is actually compulsory for insurers to offer such discounts.
Those discounts can be significant. USAA Insurance, for instance, offers a 33% discount, while Liberty Mutual provides a 25% reduction, and AAA Insurance discounts rates by 18%.* With many fleets paying thousands of dollars a year in premiums, it's easy to see why so many install GPS systems.
In fact, most fleets that install a Verizon Connect GPS solution enjoy a positive ROI within 90 to 120 days.
* Figures correct at time of printing. Contact your insurance agent or company
for current discounts and conditions.
Improving driver behavior contributes to lower premiums
Fleet drivers spend a lot of time on the road, and thus are fairly confident in their driving abilities. Unfortunately, this confidence leads some drivers to liberally interpret posted speed limits. While they may feel sure they can handle the extra speed, and that they are making deliveries faster, speeding can have serious implications for the company as a whole.
For one thing, speeding drivers can increase your insurance premiums. Insurance companies are taking note of studies showing drivers with speeding offences are much more likely to be involved in accidents. One study conducted in California showed that drivers with one violation in a three-year period had a 50% higher chance of being in an accident than those with clean driving records, and that figure doubled for drivers with two or more tickets. Insurers are using this data to adjust their premiums, meaning drivers with speeding tickets are feeling the pinch. Multiply this by dozens of drivers over several years, and those premium increases can quickly add up.
Verizon Connect Fleet™ monitors and records vehicle speeds in real-time. The system can be set to alert you when drivers exceed posted speed limits by a given threshold. You can use this information to train your drivers to be more conscious of staying within the speed limit, or to offer incentives for good driving habits.
Some insurance companies may even accept a GPS audit of your fleet's sterling driving record and offer you a more competitive coverage package. Check with your insurance company for more information.
Saving money on insurance is easy with GPS fleet tracking. Do the math and work out how much you could potentially save, and then talk to a Verizon Connect sales consultant for more details on getting your fleet fitted with GPS tracking.