Many organizations have been getting more proactive in their approach to fleet management. Nearly 70% of fleets already use GPS tracking technology, but a recent survey of 300 fleet professionals revealed that almost one-third have gone a step further by implementing a full telematics suite. Of those in trucking, logistics and shipping, 42% have already implemented telematics.
To help you explore whether telematics could be right for your fleet, we explain what it is, how it can reduce your insurance costs, and its many other benefits, including driver safety and engagement.
What Is Telematics?
Telematics refers to the technologies that monitor vehicle location, condition and real-time safety metrics such as speed, braking and road position. Using data from GPS technology, accelerometer monitoring, video and imagery monitoring, and on-board diagnostics (OBD), telematics assesses and reports on vehicle movements and driving habits. Many telematics technologies use built-in AI to merge data insights, helping fleet managers identify and act on trends.
How Does Telematics Relate to Insurance?
When fleet managers use telematics to track and maintain vehicles and coach their drivers toward improved safety habits, they can vastly improve their safety performance and reduce related costs—including insurance-related spending.
One Hartford client with a 100-vehicle fleet reduced its accidents and claims by 76% in just one year by installing state-of-the-art AI video telematics devices that instantly alert drivers of safety risks such as distractions and close-following patterns. Another client with an 800-vehicle fleet reduced its loss payments by $2 million using the same technology.
By identifying and addressing unsafe driving behaviors, organizations can use telematics data to increase driver engagement and foster safer driving habits. Armed with this data, fleet managers may also be able to reduce their insurance premiums and other related costs. Insurance companies like The Hartford have even begun to help clients implement telematics to manage their fleets.
Why Is Telematics Useful?
The most forward-thinking fleet managers are using telematics to manage and maintain their vehicles and to train and protect their drivers. Below are some of the benefits of using telematics technology.
Rich Data Insights Improve Driver Engagement
Telematics programs are a useful tool to gather data on driver habits and vehicle safety. Fleet managers can use these insights to identify safety issues and design targeted driver coaching programs. When organizations actively evaluate driver safety and incentivize safer driving behaviors, they create a culture of safety. This leads to more engaged drivers and improves overall safety performance: Some research shows that highly engaged drivers are 65% safer on the road and 57% less distracted than unengaged drivers.
Improved Safety For All
Telematics encourages drivers to be more cautious and helps keep them alert. This reduces accident rates, injuries and fatalities—a benefit for everyone on the road. Plus, when drivers improve their safety performance, your insurance costs often go down thanks to fewer claims and lower losses.
More Engaged Drivers
Driver coaching and safety incentives can improve driver engagement, thereby boosting retention and reducing recruitment costs. Plus, when drivers develop safer habits on the roads, several other costs typically come down. These include expenses related to vehicle maintenance, fuel, insurance premiums, and losses.
More Sustainable Fleet Management
By reducing maintenance expenses, losses, and insurance claims, and premiums, fleet management becomes more financially sustainable. From an environmental perspective, it also helps reduce fuel consumption and fleet emissions.
Real-Time Vehicle Tracking
With telematics to track and monitor fleets in real time, fleet managers can more readily assist drivers with roadside issues, investigate accidents, and even recover stolen vehicles.
Compliance With Electronic Logging Device (ELD) Regulations
Most telematics solutions include ELD to help drivers avoid excessive fatigue, automatically taking care of compliance with relevant regulations.
Explore Adding Telematics to Your Fleet
A robust telematics program is quickly becoming the standard for modern fleet management. Risk mitigation experts at The Hartford are ready to help you assess your telematics program and get preferred pricing on the latest technologies. We collaborate with top telematics providers to cater to your specific needs, and our dedicated team can provide tailored recommendations.