Car insurance companies appreciate anything that reduces the size of a claim, and GPS trackers can do just that. In commercial vehicles, they promote safer and more responsible driving, significantly reducing the risk of costly claims as a result.
Insurance Benefits of GPS Trackers for Companies
Adding GPS trackers to your fleet provides numerous benefits. The initial cost might be a little off-putting, but in the long-term, it will pay for itself.
The actual discounts vary from insurer to insurer, but you could save around 15% on average. Insurance companies love these devices, and businesses should love them as well, as they provide the following benefits:
Monitored drivers are safer drivers. They take fewer risks and are less prone to speeding, hard braking, and dangerous cornering.
The difference is quite substantial, as well. Research suggests that monitored drivers are 20% less likely to be involved in an accident. When you account for an entire fleet and dozens of drivers, the savings could be massive. It’s not just the insurance company, either. You’ll also avoid premium hikes and the stress associated with major car accidents.
Reduced Risk of Theft
A vehicle is stolen every 42 seconds in the United States, accounting for over $6.3 billion in damage. Over 40% of these vehicles are never recovered and those rates are increasing. Criminals are getting smarter, as many vehicles are driven straight to chop shops where they are altered and then re-sold locally or nationally.
Reduced Fuel Use
Speeding and other dangerous driving habits increases fuel usage, which means you’re paying more when drivers are being less cautious. Estimates suggest that every 5 miles over 60 MPH costs $0.24 extra per gallon. It’s relatively minor, but when you have many drivers covering vast distances, it adds up!
Promotes Proper Maintenance
GPS trackers can be programmed to send alerts when it’s time for an oil change or other basic maintenance. You can keep those vehicles in tip-top shape and prevent blowouts and other issues.
Worried that your employees are using company vehicles for personal use? A GPS tracker will highlight such issues and prevent them from occurring in the first place. If your employees know they are being tracked, they’re less likely to use it for personal reasons.
What About Individuals?
GPS trackers don’t just benefit business owners and commercial fleets, as this technology has been adopted by personal car insurance companies as well.
Insurers like Geico, Allstate, and Progressive have safe driving programs that use telematics to track your habits and location. These devices connect to your onboard diagnostic port, which is installed on all new vehicles made after 1996. It tracks every mile that you drive and monitors everything from your braking habits and speed, to the time of day you’re driving and the number of miles you cover.
To promote the use of these devices, most insurers offer instant discounts when you apply. Depending on your driving habits over the proceeding months, as well as the type of car you drive, your location, and your insurer, you could save up to 50% on your premiums.