Did you know that litigation of truck accidents has increased significantly?
Whether you have a transportation company or a trucking fleet, managing insurance may be a daunting task. We say this because legal settlements are on the rise and premiums are increasing. Plus, the equipment has become more costly. The new legislation has drastically changed the way people measure and understand safety.
With the insurance landscape shifting, drivers are opting for new technologies to keep themselves safe and lower their insurance. Technology plays a key role in enabling technology adapters to decrease risks in the driver’s seat. Also, many auto insurance companies offer discounts to their policyholders for installing vehicle safety devices or demonstrating safe driving.
Increased Premiums on Trucking Insurance
According to a recent report by the American Transportation Research Institute, the average cost per mile for trucking insurance has risen from $0.064 to $0.075. In the last two years, the cost of trucking insurance premium increased 12 percent on average, according to the Wall Street Journal.
This has made improving safety while driving vitally important for the truck drivers to lower insurance costs.
Here are some ways carriers limit their future trucking insurance cost and stay insurable.
How Technology Helps Carriers Lower Trucking Insurance Cost
Use of ELD Data
Progressive Insurance typically offers a notable discount to its carriers that use the Smart Haul program to share log data electronically. Progressive assesses a carrier’s ELD data record on a yearly basis to form a determination.
The company compares the driving habits of individuals to commercial heavy truck drivers to determine savings on premium based on the recent driving records. The new qualifying drivers can save three percent through Smart Haul Program and if the carrier shows the best driving skills, the savings can be more than 15 percent.
Dashboard cams on trucks have become table stakes as they positively reduce premiums. In many cases, these cams can eliminate the chances of an accident claim, which was a difficult battle in the previous years. Even if it is the case of a clear head-on collision, dash cams simplify finding or determining who was at fault. A video review often exonerates a driver on the incident spot.
Policy Holder’s Up-To-Date Risk Assessment
Many insurance companies and insurers have display interest in embedding technology to obtain accurate risk assessments from the policyholders. They appreciate it when trucking fleets use a closed loop-hole approach to avoid risks.
Mentor, for instance, is an eDriving risk management insurance program that includes mobile technology, FICO Safety Scores, and online driver training in its prominent features. It helps drivers gauge and measures behavioral improvements to monitor and change risky driving habits.
Insurance companies like Zurich strongly consider their fleet’s commitment to follow the risk reduction program an important aspect when underwriting insurance policies.
All in all, any technology that helps drivers or fleets reduces the risk for accidents or crashes can improve driving and decreases insurance cost.