Will GPS Fleet Tracking Reduce My Insurance Premiums?
16 Dec 2024As a fleet manager, you’re always looking to support your bottom line. This means keeping
costs down while increasing revenue as much as possible. So you know how much insurance
premiums can eat into your bottom line.
While insurance is an unavoidable cost, there are steps you can take to reduce premiums and
save money. One of the easiest ways to reduce insurance premiums to install GPS tracking
devices across your fleet.
Yes, that’s right. You can pay less for the same coverage by simply installing GPS fleet tracking.
Why Do Insurance Companies Offer Reduced Premiums for GPS Fleet Tracking?
The simple answer is that insurance companies know that there’s a smaller risk they’ll have to
pay out if your fleet uses GPS fleet tracking.
This is because GPS fleet tracking increases safety, reduces driver accidents, reduces the
chances of missed maintenance checkups, provides valuable information for liability claims, and
increases the chance of vehicle recovery after theft.
Companies that use GPS fleet trackers are at lower risk, therefore, they pay less for the same
coverage.
How Are Insurance Premiums Calculated?
Fleet insurance is calculated based on the following factors:
● Location: Insurance premiums may vary depending on what state your drivers work in
and whether they drive in the city or out in the country. For example, insurance
premiums are higher for city drivers than for rural drivers.
● Ownership: Companies that own vehicles rather than lease or rent them usually pay
lower premiums. There are additional risks when insuring rented or leased vehicles.
● Driving habits: A history of drivers with good driving habits and on-the-road behavior
can help reduce insurance premiums, while risky drivers who have gotten into accidents
can increase them.
● Anti-theft devices: If your vehicles have alarms, locks, and other anti-theft devices, you
can expect lower premiums because there’s a smaller chance these vehicles will be
stolen or broken into.
● Vehicle types: The kinds of vehicles in your fleet will also affect insurance costs. The
value of the vehicle along with the safety rating of the vehicle will affect how much you
pay for insurance.
How GPS Trackers Can Help
● Theft recovery: GPS trackers increase the chance that a vehicle will be recovered after
it’s stolen, giving it a smaller risk of theft.
● Driving habits: GPS trackers allow fleet managers to monitor driver behavior and
address any risky behaviors as they arise. Also, if there’s an incident, your company can
provide exact data on how the driver was behaving on the road at the time of the
accident.
● Establish fault: With the data from GPS trackers, you can easily establish fault at the
moment of the accident. So if your drivers are practicing good driving habits, it will
usually be other drivers who are at fault.
● Maintenance: GPS trackers can alert you when vehicles are due for maintenance, so
you never miss a checkup again.
LiveViewGPS has a large collection of GPS tracking solutions for fleets, individuals, teen and
elderly tracking and more. Visit us online at https://www.liveviewgps.com
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