As my regular readers know, I’ve switched my family’s car coverage to InsureMy, a progressive provider working in Alberta and Ontario that’s pioneering the use of technology and telematics in the vehicle insurance industry. While browsing their website, I recently came across some interesting information about commercial vehicles and decided to dedicate an article to the topic of fleet insurance.
Telematics is Ideal for Fleet Owners
Telematics is a relatively new phenomenon, one that a lot of people aren’t yet familiar with. To clarify: telematics devices are electronic instruments installed in vehicles that track a whole host of data about how the vehicle is used. Specific to fleet insurance, telematics devices can keep tabs on:
- How frequently a vehicle is used, and how much time it spends out of use
- The average length and duration of trips
- Environmental impact analysis, including vehicle efficiency, performance and fuel consumption rates
- Driver habits, including speed, handling and braking
Insurance companies can use this data to assess risk and deliver custom rate reductions to clients with positive risk profiles. This information can also be a major benefit to owners of commercial fleets, as it can be used to generate insights that can help improve operational efficiency and incentivize positive employee behaviour.
Applying Telematics to Fleet Insurance
Specific to commercial fleets, telematics also offer another key benefit: the ability to track vehicle locations in real time, which helps companies provide better service to their customers and plan more efficient routes. Telematics also captures data that can help companies with insurance claims in the event of an accident.
In addition, safety initiatives are greatly improved by applying telematics to commercial fleets, since these technologies are capable of generating driver-specific reports at specified intervals. These reports help fleet owners be proactive about incident and expense prevention while providing them with powerful educational tools for implementing good company-wide driving and vehicle maintenance habits.
Telematics also support more precise expense management. They can track the precise number of kilometres that have been driven since the vehicle’s last oil change, eliminating the discrepancies that can occur when such readings are kept manually. They can also help diagnose performance inefficiencies that signal potential mechanical or systemic problems, helping companies be more proactive about maintenance and then be able to address issues before they become expensive problems.
One other important way in which telematics can provide major benefits to commercial fleet managers is through fraud prevention. Some businesses, such as personal or commercial vehicle rental companies, rely on mileage tracking to generate pricing, while others may offer to reimburse employees or contractors for their mileage or time behind the wheel. In both cases, inaccurate reporting can lead to fraudulent claims that damage the business’s bottom line.
Telematics eliminates these situations by creating direct reports tracking the amount of time spent driving, the distance and mileage driven, and the specifics of vehicle usage during the tracking period. For fleet managers, guesswork and dishonesty are completely eliminated from the equation.
Fleet Insurance: Telematics and Green Driving
Green driving leads to cost savings, in addition to reductions in environmental impact. Telematics also help support green driving by encouraging cleaner and more conservative habits that reduce fuel consumption and keep vehicles running more efficiently.
There are four major pillars to green driving:
- Reduce idling
- Keep tires properly inflated
- Keep the vehicle well-maintained
- Take efficient routes
Through advanced route planning and critical performance data tracking capabilities, telematics support all four of these keys to green driving without adding a penny to operating expenses.
Learn More About Fleet Insurance and Telematics
InsureMy works in Alberta and Ontario, providing progressive products including telematics and time-based fleet insurance policies for commercial clients. Telematics offer powerful benefits for businesses — advantages that reduce costs while improving safety and service standards.