GPS tracking businesses have many valuable features they can offer when selling a GPS solution. There are many ways organizations using GPS tracking can save money and be more productive, including optimized routing, efficient tracking of employee time, and clever uses of geofencing.
Another compelling reason a business might consider a GPS tracking system for their fleet is the immediate discount they can receive on their insurance premiums.
Insurance companies offer these discounts for a number of reasons. First, businesses that are tracking their vehicles are able to monitor their employees' speed and driving habits, reducing accidents and promoting safe driving. Also, the GPS tracking devices double as an anti-theft measure, since a tracked vehicle is easier to recover if stolen.
The line item discount
Many businesses can receive a substantial discount on the comprehensive coverage portion of their insurance premiums as soon as they start using a GPS tracking solution on their fleet. The discounts vary by state and insurance provider but have been reported to be between 10 and 33% (most typically around 15%). For many businesses, even a 10% savings on their premiums could represent a significant amount of money. To qualify for the discounts, businesses just have to show that they are actively tracking their vehicles. Typically, they also have to share driving behavior feedback with their drivers quarterly.
Safe driving keeps rates low
There is more to the savings than the standard rate adjustment. Accidents and traffic violations can raise insurance rates. Businesses are determined to keep these costs down. A GPS tracking system can help achieve that goal. Managers can receive alerts when their drivers are speeding and driving recklessly. Drivers can even receive a gentle automated warning when they are going over the proscribed speed limit. Using a GPS tracking system allows managers to keep tabs on their employees' driving habits, thus reducing the number of accidents and speeding tickets.
A tracked vehicle is recoverable
If a business's vehicle is stolen, the cost goes far beyond the sticker price of the vehicle. There is also a substantial opportunity cost. If the vehicle is stolen, it is not able to do the job for which the business bought it. Also, many business vehicles haul costly tools, equipment, and parts used in serving customers. When a vehicle is stolen, there's no telling how long it will take to recover. Sometimes, stolen vehicles are never recovered.
Rather than just writing off the losses and filing an insurance claim, GPS tracking lets businesses report the current location of a stolen vehicle to the police to aid in its recovery. Speedy recovery will help get the vehicle back into commission and prevent further losses. Without the GPS tracking, the insurance company would have to pay for the lost assets, and would probably raise the premiums on the business.
Admissible in court
GPS tracking can provide evidence of where a vehicle was and when. For example, if a company driver is accused of being involved in a hit-and-run, GPS data could prove that driver was never at the scene of the accident and that it is a frivolous lawsuit. This can save both the business and their insurance company thousands of dollars.
GPS businesses should encourage their prospective clients to ask their insurance providers how much they can save on their premiums if they were to start tracking their fleet. If you are interested in starting a GPS tracking business or in offering your clients, GPS tracking services, sign up for a free demo today.