Most insurance companies reduce premiums if you install fleet GPS tracking. This is accepted as a given, but not many clients understand the reasons why. GPS tracking offers reassurance to many parties involved in your business, including your insurance carrier. Here are five reasons why insurance companies reduce premium costs when you install tracking:
- Better driving habits: Employees are much less likely to speed, run red lights or indulge in other reckless driving behavior when they know GPS tracking is activated. Our systems also include speeding alerts, so if an employee is a risk, you will know immediately and take precautions. Insurance companies are aware of this, too, so they lower premiums based on a reduced possibility of traffic violations and accidents.
- Less misuse: In the days before GPS, employees may have taken a company vehicle out for non-business purposes—even a day trip or weekend camping. This increased the possibility of vehicle damage and liability against an employer. Even if an employee was on a non-business errand, you could be held liable if they used a fleet vehicle. When employees know they are being monitored, they are less likely to misuse vehicles and increase the number of insurance claims.
- Quick problem solving: GPS tracking can indicate breakdowns, accidents and even incidents like a tire blowing out. These incidents are likely to cause accidents and injury, which again fall on you for liability. When you can send roadside assistance quickly, that reduces the possibility. Also, GPS tracking systems may come with maintenance alerts that let you know when a car needs repair. Sometimes the best way to prevent insurance claims is through good maintenance and emergency management. GPS helps with both of those goals.
- Less theft: When a vehicle equipped with fleet tracking is stolen, the police can find it quickly. Normally, this takes weeks, and once located, there is not much left of the stolen vehicle. A quick recovery reduces the possibility of a loss claim, and that is always less expensive than a repair order. If you transport cargo or equipment, the improved chances of recovery reduce claims on those losses, too. You can even request a system that shuts down a car remotely once you realize it was stolen. That definitely stops a thief in their tracks!
- Reduces chances of driver injury: There is always the possibility of bad events that are not an employee’s fault. An employee may be forced to drive an armed criminal, or slip into a ditch on an icy day and sustain a concussion. Bad accidents can also render an employee unconscious. Not only can you be held liable for injuries caused by an employee, you may face legal repercussions if an employee is injured on the job and you fail to help them. GPS tracking helps you detect unsavory circumstances so you can call for medical or law enforcement intervention.
GPS Technologies is a specialist in fleet GPS tracking. Call today to schedule a consultation and start enjoying reduced insurance premiums as soon as possible.