GPS Tracking Saves Money on Commercial Auto Insurance
29 Aug 2013Operating a business today is expensive. Everywhere you turn, there are new expenses to pay. Insurance is one expense that most small business owners hate paying month after month. That is, until you find yourself in need of it. But, what if you could do something small and insignificant that helped you save money on insurance and other operational expenses? You can! All you need to do to begin lowering the cost of insurance for your fleet vehicles, by anywhere between 5 and 30 percent, is to install GPS fleet tracking system on your vehicles. Here’s why it helps you save.
Improves Odds of Vehicle Recovery from Theft
Theft is a big risk for insurance companies. The installation of real time GPS tracking systems on all fleet vehicles greatly improves the odds of vehicle recoveries following thefts. This reduces the risks the insurance takes on when insuring your vehicles and, as a result, lowers the fee they charge you for that protection. Depending on the specific fleet tracking software you purchase, it is possible to create alerts whenever vehicles leave certain geographic boundaries or are active at certain times of the day so that you’re aware of potential thefts sooner rather than later too.
Encourages Safe Driving
People drive better when being monitored. Many insurance companies believe that safe drivers pose lower risks. As long as your drivers are showing good driving habits, receiving fewer tickets, and avoiding accidents, the insurance company is willing to reward your business by offering discounted costs for insurance coverage. Everyone wins in this scenario.
Maintenance Scheduling
Believe it or not, properly maintained fleet vehicles are less likely to break down and cause accidents on roadways. Proper fleet maintenance also helps to reduce fleet maintenance and operation costs. Proper tire inflation, for instance, leads to better traction on roads when the weather is bad. This reduces accidents and helps keep insurance claims for your business at a minimum. Insurance companies certainly believe in lowering their risks. As a result, they reward customers who practice preventative maintenance by offering significant insurance discounts and reductions. Most GPS tracking software also monitors and schedules maintenance for vehicles when needed. Business owners enjoy the double savings of fewer expense and replacement costs in addition to lower insurance costs.
Insurance companies are all about assessing risks and hedging their bets. Poor driving records lead to higher insurance rates because they represent bigger risks for the insurance company. GPS tracking software offers some degree of protection for the insurance companies on all three of these levels. Encouraging safety among drivers, increasing the likelihood of recovery after theft, and scheduling vehicle maintenance all lead to lower risks for the insurance company and bigger savings for your company. It’s a win-win situation on all sides. Perhaps it’s time for you to take GPS tracking for your business seriously.
Comments are closed.