Does your insurance carrier know your company is using a GPS tracking system? If they do are they giving you a discount on your annual premium?
If you said no to that question, you need to shop that policy around… immediately. Companies like Travelers, Liberty Mutual, Zurich and The Hartford, just to name a few, are all offering discounts if you are managing your fleet with GPS tracking and telematics. Liberty Mutual for instance is offering a 15% discount with their program, and from there the savings will continue based on your experience.
Standard vs. Experience Discounts
Please keep in mind we are not an insurance company or agents and each state in the United States allows insurance companies to offer discounts differently. So please consult your agent for your company’s most up-to-date available discounts in your state. Insurance carriers, generally speaking, are able to offer two forms of discounts, Standard and Experience discounts. Standard discounts are the ones to get your business; the initial 15% that Liberty Mutual offers is a good example of that.
From that point forward a company can earn more discounts through experience, keeping your accident rate very low and not filing claims of any kind are a few ways to get an experienced discount. Incorporating and maintain a regular safety program is another. To help keep your claims low a good telematics system can really help, if you are operating at full capacity and are able to manage your fleet with safety in mind you can keep a lid on your accident rate and claims. Speeding can be eliminated, unnecessary use of company vehicles (which can be a huge problem) can be eliminated and insurance companies love this.
How Insurance Programs Work
The insurance carriers may not mandate that all of your fleet have tracking units but they will require that the majority of them do. For instance they may simply require that three fourths or two thirds of the fleet have a GPS device tracking its movement and use. But the savings with all factors combined will easily give a positive return on investment, which makes the use of tracking system a no brainer. So do your company a favor and outfit the fleet.
Most carriers will have a minimum size fleet requirement for their program discounts but usually it’s a starting point of 9 to 11 vehicles. If your fleet is large enough they may even mandate that a tracking system is used. Liability on the larger fleets, over 100 to 150 vehicles is very big and this would dictate a management system just to be offered initial coverage.
How Can You Start to Save
If your company is interested in learning how you can begin saving time and money with a telematics system please feel free to contact Driver Watch Systems. Our team will be more than happy to discuss all options available to you. So that you are not forced into a system that won’t help your specific company’s needs we offer more than one manufacturer. Every company is different with different requirements, so don’t be pigeonholed into anything that won’t help your company. Talk to us today for a custom savings guide and a quote for your fleet.
Sources: BusinessFleet.com
