Fleet Managers are turning to telematics to save on insurance costs
Telematics has emerged as an increasingly valuable tool for fleet managers looking to save on commercial vehicle insurance. Insurance providers using this form of technology can paint a more accurate picture of driver habits and offer customers usage-based insurance (UBI) plans that cost less than traditional ones.
According to a recent report from LexisNexis, the UBI industry has made significant progress in the past few years. Nearly 72 percent of fleet managers stated they were more likely to enroll in a UBI plan under a three-month trial. The study also showed that these managers are receptive to the idea of mobile UBI solutions, since 73 percent of small fleet drivers have smartphones. MarketsAndMarkets, a global research and consulting company, predicts that the telematics industry will grow from $17 billion this year to $39 billion in 2019.
Research has indicated that telematics can provide a wide range of benefits to commercial fleets. The technology’s ability to efficiently manage vehicles and drivers, along with its potential for insurance savings are compelling numerous companies to start implementing telematics solutions. In addition, several commercial auto manufacturers are exploring the possibility of adding telematics to their vehicles in order to provide enhanced safety and connectivity features.
Telematics can be used for a variety of purposes, such as notifying drivers of congested areas and red lights ahead. Equipped with this information, drivers can conveniently alter their routes through less congested areas and reduce fuel consumption costs. Areas of less traffic often experience fewer accidents, which translates into lower insurance premiums and less money spent on deductibles, impromptu car rentals, and downtime.
In a challenging economy where profit margins are slim, and there is less opportunity to raise fees or prices, telematics provides fleet companies with a tool designed to help them stay competitive. A great of drivers desire more safety and connectivity features, which makes telematics an attractive solution for fleet managers and consumers alike.
For More Information:
- Learn More About USAT Vehicle Networking
- For Help with Vehicle Telemetry Projects Contact a USAT Rep
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