GPS Tracking Reduces Insurance Costs for Fleet Vehicles | Rocky

Auto Theft GPS Fleet Tracking GPS Tracking DevicesPublished March 14,2011 at 10:00 am No Comments

As small businesses face rising operation costs due to rising fuel and materials prices,many have turned to GPS tracking to help them keep fleet vehicle expenditures under control. In addition to fuel savings and theft prevention,the tracking capabilities can also significantly reduce the cost of insuring company vehicles.

In the past,insurance companies often charged exorbitant fees to insure fleet vehicles for a couple of reasons. First,they often had to include young and inexperienced drivers on the policy and could not guarantee that those drivers wouldn’t end up damaging the vehicle.

Seconds,theft of heavy machinery and other expensive fleet vehicles was nearly impossible to track and recovery efforts rarely succeeded. Due to the expense of the vehicles involved and the uncertainty about who would be behind the wheel,insurance companies covered all their bases by jacking up insurance costs. But all that is slowly changing.
Small businesses that incorporate GPS tracking into their fleet vehicles can effectively counter both of the reasons for high insurance costs. The units help managers monitor driver behavior and allow them to institute safe driving initiatives to save on fuel,reduce the risk of accidents,and eliminate unauthorized vehicle usage. In addition,they dramatically increase the chances of theft recovery,making it possible for companies to point law enforcement officers directly to the stolen vehicle immediately upon discovering the theft.

Because most devices used in fleet vehicles are small enough to be easily concealed,thieves often aren’t even aware of their presence until it’s too late,making it unlikely that tampering will hamper their effectiveness. In addition,some models can be hardwired into the vehicle,making it even less likely that they can be deactivated.

Many insurance providers have responded to the new technological capabilities by relaxing their assessment of risk for fleet vehicles. When they know that managers will be monitoring driver behavior and that they can significantly reduce the incidence of theft,they become much more willing to lower insurance premiums. For small businesses,the reduction in cost can make a big difference on their bottom line.
As GPS tracking becomes more widely used,businesses will realize even more benefits,including fuel cost reductions,increased employee productivity,and greener business operations as a result of using less fuel and reducing vehicle idling. In the meantime,however,lower insurance costs are a great place to start.

Article Written by Greg Bartlett

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