Does GPS Tracker Reduce Car Insurance?
For any company which operates fleets of cars, GPS fleet tracking is absolutely essential. There is an array of benefits which this kind of technology can offer such a business. For example through the use of GPS fleet tracking we can better manage our drivers and we can increase their safety too. Beyond this we can give customers a better and faster service. One great benefit which businesses can count on when they install GPS tracking on their vehicles, is that it can greatly reduce car insurance premiums. This of course is a big cost to a business which operates a large fleet, and here is why the insurance will be reduced with this technology.
GPS Tracking Lowers Vehicle Theft Claims
There are two great purposes which a car GPS tracker will serve when it comes to vehicle theft. The first is that this kind of tracker actually acts as a deterrent to would-be car thieves; the second is that vehicles can be tracked, located and recovered quickly thanks to the technology. For this reason insurance companies are happy to give you a discount if you are using a GPS tracker on your vehicles.
GPS Tracking Improves Driver Behavior
Most accidents occur on the road because of poor driver behavior. Using your fleet tracking software however you will be able to see a huge amount of data which shows how your drivers are managing the vehicle. This includes how harshly they brake, how they accelerate and even how sharp they corner. Because you can better manage your drivers, it is much more likely that they will drive smarter on the road. Additionally if drivers know that the are being watched, they generally drive better on the road, reducing the chance of accidents.
Better Vehicle Maintenance
GPS fleet tracking software gives you real time insights into the condition of the vehicle and that is essential for helping you keep up with maintenance. In the eyes of the insurer, a well maintained vehicle is likely to perform better on the road. This increased level of performance helps to significantly reduce the chance of accidents. This of course is a positive factor for companies, who can ensure that their vehicles are always well maintained. For the insurer, they consider your vehicles to be safer and as such as they will be more likely to offer a reduction on your car insurance costs.
No Misuse of Vehicles
Another great feature of GPS is that your employees will be far less likely to use the vehicle on their personal time, as of course they will be tracked. Insurers know that the more a vehicle is used, the higher the chance of an accident. Given that the tracker will dissuade drivers from misusing the vehicle, insurance companies feel more confident that the vehicle will be safer.
Of all the benefits of GPS fleet tracking, cost saving is one of the greatest to a business, and this reduction in insurance costs is a great example of that.