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Why Insurance Telematics is The Future Of Fleet Insurance

  • Post category:TELEMATICS

A large fleet entails large expenses. This expense is compounded by the fact that the personnel, as well as the vehicles, need to be insured. But alas, no matter how ‘safe’ a prospect your fleet might be, the insurance premiums remain the same for everybody. Or, do they? 

The future of Fleet Insurance

Insurance costs have risen steeply in the past few years. This has put fleet operators under pressure. A novel Telematics based fleet insurance system can help fleet operators reduce costs.

With the use of telematics technology, fleet management can be simplified. And, with the integration of insurance providers with telematics, the cost of insurance premiums too can be reduced. This helps fleet operators save a lot of money and brings in more business to the insurance providers at reduced risk. 

What Telematics offers

Insurers need different means to assess risk and Telematics solutions are just the right tools. Tangible benefits can be clearly evidenced from in-vehicle technology that monitors and reports on driver behavior in the use of the vehicle. Driving patterns data such as harsh braking/acceleration/cornering/speeding/lane changing, etc will allow both fleet managers as well as insurance providers to assess risk engineering policies which in turn allows for a reduction in the cost of risk for the motor fleet. 

Usage-Based Insurance 

In usage-based fleet insurance, mileage and driving behaviors are tracked through Telematics systems. Tracking is achieved by in-vehicle telematics technology that is available in a vehicle. It can also be available through mobile applications. A driver’s behavior is monitored directly, allowing insurers to more closely align driving behaviors with premium rates.

Telematics devices measure a number of points that are valuable to insurance providers. Through a telematics device, information like kilometers driven, routes taken, time of the trip, driver behavior such as sudden acceleration, hard braking, cornering, speeding, etc can be monitored. This data enables the insurance provider to assess the risk a particular truck poses and arrive at the insurance rate for it accordingly. Vehicles with drivers having a good driving score can avail insurance at a lower premium. A ‘safe’ driver can be charged a lower premium whereas a ‘risky’ driver can be charged a higher premium. Usage-based insurance has the advantage of utilizing individual and current driving behaviors, rather than relying on aggregated statistics making premium pricing more individualized and precise.

Advantages of Usage-Based Insurance

Telematics-driven usage-based insurance schemes offer many advantages to insurers and fleet operators alike. Linking insurance premiums to fleet performance allows insurers to more accurately price premiums. This increases affordability and reduces costs. It also gives consumers the ability to control their premium costs by offering incentives to drivers to reduce kilometers driven and adopt safer driving habits. Safe and efficient driving further reduces costs and increases the profit margin.

The use of telematics helps insurers to more accurately estimate accident damages, identify the perpetrators and reduce fraud cases by analyzing the data. Video Telematics plays an important role in monitoring real-time driver behavior. The video footage along with incident insights are uploaded to the dashboard, which allows insurers to ascertain the exact cause of an incident by providing crucial data to understand.

Why Tangerine 

Tangerine’s Next-Gen Commercial Truck Insurance with Video Telematics provides specific coverage and risk management options to businesses operating fleets of all sizes at a reduced insurance premium. By integrating Tangerine’s video-based insurance telematics solutions into your fleets, we not only protect your trucks and drivers but also reduce costs, increase efficiency, improve your overall operations, and provide the coverage you need at the best rate.

Tangerine’s niche expertise provides the products you need and the service you deserve to get back on the road faster. We understand your needs and share your concerns, we have the program that fits your requirements so your drivers can drive with confidence

  • Lower Insurance Premiums
  • Reduce Accident Related Costs
  • Improve Safety Scores
  • Reduce Unplanned Maintenance
  • Protect Drivers Against Frauds and Complaints
  • Improved Operational Efficiency