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Posted April 9, 2019

WEX GPS Tracking Insurance Premiums

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GPS vehicle tracking is no longer a “nice to have” feature for company vehicles. Today’s tracking technologies have never been more affordable and easy to install. Small businesses shouldn’t wait to have five vehicles or more before implementing a tracking system. Just take a look at the benefits GPS tracking confers, as outlined by Verizon Connect:  

  • Reduce unauthorized vehicle use 
  • Control and reduce fuel costs 
  • Reduce labor costs 
  • Easily organize, manage, and optimize route stops (job, deliveries, etc.) 
  • Provide visibility to back office dispatchers  
  • Improve vehicle security (or recovery of stolen vehicles) 
  • Automated reporting of mileage, engine hours, driving hours, or time at job site

Despite all this goodness, this list leaves out one crucial detail: tracking technologies reduce auto insurance premiums. Let that sink in.  

 

4 Reasons Why Insurance Companies Love GPS Tracking Systems 

The short answer: insurance companies love GPS tracking systems because they encourage safer driving. And many major insurers offer discounts of up to 15 percent on insurance costs to businesses that implement tracking solutions.  

Some insurers will even pay you to implement GPS tracking technology for your business fleet. If this leaves you scratching your head, consider these four reasons GPS tracking lowers commercial auto insurance rates, as suggested by GPS Heroes: 

 

1. Lower chance of claims due to vehicle theft

Most of us get how GPS tracking assist in remote asset recovery. Without GPS tracking it can take police weeks to hunt down stolen vehicles. In many cases, the vehicle is never recovered and the insurance company pays out a large claim. This is why so many insurers offer anti-theft device discounts.  

2. Improved driving behavior

Drivers who know they are being monitored by GPS tracking devices are safer drivers. Data on speeding, rapid acceleration, harsh braking, sharp cornering—you name it—is transmitted back to insurers. Using this data to coach your drivers on safer driving behaviors reduces insurance costs as well as fuel costs. According to Forbes, drivers insured through GPS vehicle tracking get into fewer accidents—a 20 percent reduction by some calculations.   

3. Discourages misuse of vehicles

GPS tracking systems discourage employees from using company vehicles for personal use. Insurers know that the more a vehicle is driven, the higher the chances of any type of accident. Again, this positive effect lowers insurance costs as well as fuel costs.  

4. Proper maintenance prevents accidents

A vehicle that suffers a tire blowout or other mechanical malfunction is more likely to cause an accident. GPS tracking systems not only notify you when your employees are engaged in unsafe driving or using business cars and trucks on off hours, but send out real-time alerts. Your phone pings with a message telling you it’s time to perform vehicle maintenance like oil changes and tire rotations. What’s not for a fleet manager as well as an auto insurer to love? 

 

Will My Insurer Offer a Discount for Installing a GPS Tracking System? 

As the Magic 8-Ball says: Signs point to yes. According to Forbes, “21st Century Insurance gives 15 percent off its comprehensive coverage premium for theft recovery devices like GPS trackers. Nationwide offers anti-theft discounts based on the state you live in and based on the type of device you install. Geico says customers can get up to a 25 percent discount.”  

GPS vehicle tracking is worth your while. Ask your current provider if they will recognize a discount on your insurance premium if you invest in tracking technology for your business vehicles.  

 

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