Did you know that unwarranted lawsuits, damage from crashes, and costs that come with transporting goods has spiked significantly?
This has caused commercial transportation insurance to rise, making this subject the biggest concern for fleet leaders. According to the American Transportation Research Institute, increasing insurance costs is the fifth largest issue truckers face.
Due to an increase in claims being filed, most insurance carriers have increased their premium rates. Increasing insurance premiums has gradually turned into a trend over the years.
Are There Any Fleet Risks?
Trucking companies need to implement some smart risk management strategies to prevent costly maintenance, safety issues, and repairs. Keep in mind that each cargo type entails some unique risk exposure.
One mistake can lead to numerous problems such as incomplete shipments and a tarnished reputation.
Wondering what the solution can be? If you’re a savvy fleet manager, you need to go beyond some standard measures that can improve safety outcomes. Here’s how technology comes in to play.
How to Lower Insurance Rates with the Help of Technology
With recent regulations like ELDs (electronic logging device) in effect, trucking businesses need to change their practices.
The trucking business needs to look for tools that can help them improve driver safety, driver training, and the driving experience. Also, a tool that enables truckers to use video capabilities on the road would be beneficial. These tools are a great way to mitigate risks associated with reckless driving.
When truckers provide sufficient data to insurance carriers regarding the precautions they’ve taken to reduce the risk of accidents, the insurers can take those precautions into consideration when determining rates. This can result in a lower premium price because the insurer will deem you as less risk.
For instance, many trucking companies have invested in a “driver and road facing video camera” -a safety device used to reduce distracted driving. Drivers can not only use the available technology, but can also join safety awareness programs to improve driving practices.
As a result, it can decrease the claim losses by providing evidence of before and after instances of an accident. The fleet owners, legal counsel, carriers, and insurance advisors can use the relevant information related to the incident when necessary.
However, truckers or trucking companies must use the technology to gather data and analyze it to identify areas that require improvements. It becomes even more crucial for securing the right premium rates.
How does Technology Affect Premium Rates?
Keep in mind that demonstrating continuous vigilance and improvement in fleet functions is one way to convince your carrier that you’re making an effort to improve safety measures. It increases your chances of getting lower insurance rates.