A 40% discount on your commercial vehicle insurance; if you’ve looked into the benefits of telematics this is possibly one that stood out to you.
However, you may be thinking it sounds more like hype than substance – are these insurance premium discounts legitimate and, if so, how exactly can you take advantage of them?
The lowdown on lowering insurance costs
The good news is that using telematics can open the door to discounts from a range of commercial insurance providers. Two of the country’s largest insurance companies, Liberty Mutual and Travelers, partner with Telogis to offer a telematics-based insurance programs that, in some instances, reduces a fleet’s insurance premiums by 40%.
More than just discounted premiums
It’s important to remember that reducing your fleet’s insurance costs involves more than just getting a reduced premium from your insurance company. In fact, some of the biggest savings can be realized through the positive impact of Telogis telematics on your driver’s behavior and the security of your assets.
By reducing accidents and improving the recovery of stolen vehicles, you can minimize claims made, excesses paid and the dent on your ‘no-claims’ discount. A good safety record also makes it easier for your fleet to negotiate new policies or additional discounts.
- Reducing accidents – The actual cost of fleet accidents can be horrifying and it extends well past just the basic damage to the vehicle. Telogis safety initiatives for drivers, including in-cab alerts and a personal coaching tool, help to minimize dangerous driving such as speeding, distractions, HOS non-compliance or harsh braking, all leading causes of vehicular accidents.
- Faster recovery of stolen assets – With built-in GPS tracking, yard managers can receive instant alerts for unauthorized use, ignition on outside of working hours and then provide the authorities with the real-time location of the stolen asset. Fleets have saved thousands by avoiding making insurance claims and eliminated downtime due to missing equipment.
- Safer driving. Less infringements. – Bad driving is not just bad for a driver’s health – it hurts the pocket too. Tickets for speeding or careless driving can quickly add up and, in some cases, void your insurance policy.
With Telogis tools you can proactively improve the safety of your drivers and help them to practice safer driving habits around the clock.
I’m keen – How does my fleet apply for discounted insurance?
So if it’s time for your fleet to start saving on commercial insurance then here’s some information to get you started on the right track.
What fleets are eligible?
Check with a participating insurance company for confirmation but generally most small to medium business fleets, such as Ford Telematics customers, are eligible to join a telematics-based insurance program. If you prefer contact us directly for assistance.
Please note that it is not available in all states and your fleet may already be receiving the maximum discount, in which case it’s worth reviewing the savings gained from improving driver safety (see above). By reducing your annual accident count by even one accident you can save your fleet more than $60,000 per year*.
How do I get started?
Either speak with your insurance agent, or have us arrange someone to talk with your agent to determine eligibility.
Will I need to switch insurance companies?
If you decide to join one of the available telematics insurance programs then yes, you will need to change insurance providers.
After joining the program, what do I need to do to stay eligible?
The better your safety score, the better the discounts. This means using the tools Telogis provide you with to minimize incidents of dangerous driving including speeding, hard braking, harsh acceleration or tailgating. Both Liberty Mutual and Travelers accept the Telogis safety scorecard as an approved driver management tool for working out your fleet’s overall safety score and ultimately how much you benefit from the discounts offered.
How is the discount calculated?
Using the safe driving data collected by Telogis, your insurance company will calculate your safety score to work out your discount percentage. This discount is applied to the standard premium to determine the reduced final amount you pay. Of course, as we discussed above, the savings of implementing a telematics insurance program extend beyond just a reduced premium.
Ready to realize the savings? Switch on to telematics-based insurance
While change can be challenging to implement, the longer you delay making the switch the more it is costing your fleet. Start today by getting in touch with us, or your insurance agent, and see if your fleet is eligible to enjoy the benefits of a telematics-based insurance safety program. Start today!
*NSC, Facts, 2010. There are a range of both direct and indirect costs associated with every accident including This includes repair costs, subrogation recovery, property damage, personal injury, liability costs, replacement rentals and downtime. There may be additional costs such as lawsuits that are not included here.