RIsing Cost of FlEet Insurnace

Rising Costs of Fleet Insurance Premiums: The Role of Telematics

In an ever-changing business landscape, managing risk is crucial for all companies aiming to maintain a profitable and stable future. One area of risk management that presents challenges is auto exposure. Businesses often feel they lack control over the constant risks associated with their commercial fleet insurance and company fleet insurance.

The cost of doing business has significantly increased within the past decade, specifically fleet insurance costs, causing increased financial burdens on companies. According to industry reports, the average cost of commercial auto insurance has increased by 25% in the last ten years. Most fleet insurance policies provide broad coverage options. This rise is due to various factors, including the increased cost of claims from “nuclear verdicts,” where juries award large sums of money, typically tens or hundreds of millions of dollars, ultimately increasing liability for insurers and premiums for all businesses.

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One way to combat the rising fleet insurance cost is through the implementation of telematics and comprehensive training. Liability insurance plays a critical role in covering bodily injury and property damage claims resulting from accidents for which the business is at fault. Telematics refers to the use of technology to send, receive, and store information related to remote objects, such as business vehicles. It combines GPS technology, onboard diagnostics, and black box technology to record and transmit data about a vehicle’s location, speed, driving behavior, and other metrics. This data can be analyzed for various purposes, such as improving safety, optimizing commercial vehicles management, and more, ultimately reducing your risk and premiums for fleet insurance.

In addition to telematics, continuously monitoring drivers’ Motor Vehicle Records (MVRs), rather than just once a year, can make a significant impact. Distracted driving is a significant concern, and telematics can help reduce it by providing insights into driving behaviors. Continuous MVR monitoring helps identify high-risk drivers promptly and allows for immediate corrective actions, reducing the likelihood of incidents with your fleet vehicles. Fleet insurance policies cover various types of vehicles and offer flexibility in managing vehicle lists compared to traditional personal insurance policies.

The key to successful risk management is monitoring your insights and proactively preventing risks. Choosing the right insurance provider is crucial, as they can help reduce costs by utilizing data from fleet management software. At Tower Street Insurance, we offer comprehensive insurance premium solutions to these challenges. Our team of fleet insurance safety specialists helps deploy and implement fleet safety plans. By working closely with businesses, we enable them to take control of their previously uncontrollable auto exposure risks. The scope of fleet insurance cover includes essential protections like liability for bodily injury and property damage, as well as optional protections like roadside assistance and collision coverage.

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If you have questions or feel your insurance policies or risk management services do not offer the necessary coverage, please reach out to discuss how we can help. We understand policies are complex, which is why it is important for us to learn about your business and tailor a solution that meets your needs.

Get a Free Quote or call us with questions to see how we can help you proactively prevent risk.

You can email us at admin@towerstreetinsurance.com or call us at 469-788-8888.