4 Ways GPS Tracking Lowers Insurance
11 Mar 2013
Fleet services companies are constantly on the lookout for new and ingenious ways to save money. You’ve already learned that GPS tracking can help you save money on fuel costs, maximize productivity on the road, and even help cut back on labor expenses by providing drivers with the most efficient routes. But, did you know that you can also use GPS tracking system to lower your insurance costs?
Whether you’re in charge of a giant fleet of trucks that are on the road all hours of the day and night or part of a two-car family looking for ways to build a better budget, you can use GPS tools to help you shave major dollars from your car insurance each and every month. Here are four great ways you can use GPS tracking to lower your insurance costs.
1) Improve driving behavior. Whether you’re an employee or teen driver, there’s nothing quite as effective as knowing that you’re being monitored to cause you to slow down, look both ways, and take extra precaution for your safety as well as the safety of others. Even though these moves aren’t necessarily for safety’s sake, they are effective enough. Namely, because they force drivers to drive safely for fear of paying more money or losing privileges like driving in the first place.
2) Discourage employee vehicle misuse. This one pertains primarily to employees who may be tempted to go off the grid with their trucks over the weekend. The more you, as a fleet operator, can reduce these “moonlighting” costs, the lower your insurance is destined to be.
3) Ensure proper vehicle maintenance. There’s nothing quite like a blinking light on your GPS device (depending on which tracking device you’ve purchased) to ensure that proper maintenance. Most modern GPS systems are about so much more than getting from point A to point B. But, if you’re keeping up with regular oil changes, tire rotations, etc., your fleet of vehicles are going to last much longer, saving you a ton of money in replacing company vehicles. A better maintained car is also less likely to be the cause of accidents and that keeps insurance companies happy too.
4) Discourage theft. Not only does a GPS tracking device discourage theft, but it also provides for a speedy recovery of the vehicle if a theft does take place. This means you are able to get back on the road with your vehicle sooner rather than later. For the purpose of insurance costs, it means they’re less likely to have to pay to replace a stolen vehicle — and that’s something they smile favorably upon by offering lower monthly premiums.
At the end of the day, insurance companies are in business to make money. When you use things like a GPS tracking system for fleet tracking and fleet management that can save them money, they are often happy to pass those savings along to you by way of thanks.
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