A GPS vehicle tracking system (like WEX Telematics) 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 offers:
- 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
This list leaves out one important detail: tracking technologies reduce auto insurance premiums.
4 Reasons Why Insurance Companies Love GPS Tracking
Insurance companies love GPS tracking because they encourage safer driving. Many major insurers offer discounts up to 15 percent on insurance costs to businesses that implement tracking solutions.
Some insurers may 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 helps with 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’re 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 discourages 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 not only notifies you when your employees are engaged in unsafe driving or using business cars and trucks on off hours, it sends 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.