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How telematics technology can drive down your fleet’s insurance costs

How telematics technology can drive down your fleet’s insurance costs

One area that is often not well known is how telematics technology has the potential to lower your fleet’s insurance premiums and excess as well as your insurance levies.

Insurance companies are consistently looking to telematics technology to provide customers with a more accurate insurance cost based on real driver behaviour. By installing EROAD in your vehicles, you can potentially reduce your insurance premiums and excess by participating in targeted insurance programs.

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Simply monitoring your fleet and driver performance is not enough to impact your insurance rates. But, when used as part of a wider fleet safety program to track performance and coach drivers to be safer, it can often contribute to lower insurance premiums given you can provide a solid record of performance.

In addition, EROAD also offers anti-theft functionalities with its ‘Asset Tracker’, an ultra-small, waterproof, satellite-ready tracking device which accurately tracks and monitors mobile assets, wherever they are located, and provides a daily location update.

As a result, your trucks are better insured against theft, especially as these types of anti-theft tracking devices are able to pin-point the exact location of the stolen vehicle.

Telematics systems have also become increasingly popular for companies with non-powered or lower value equipment, which may not be cost effective to cover through insurance.

In effect, it’s a form of self-insurance if the loss of that equipment, from such things as theft, would result in financial and operational costs that need to be offset or minimised.

*Not all insurance companies offer discounts for utilising vehicle tracking systems. However, many will consider your use of telematics technology when setting their premiums.

Case study: Wholesale food distributor, Bidfoods uses EROAD to help manage its 640-strong fleet. It sits in the top 25 percent of companies using EROAD’s system which has resulted in Bidfoods qualifying to have its excess waived in certain cases under its insurance company’s driver programme.

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