Talking Telematics For Motor Fleets
All insurance costs are based on risk. If the risk can be accurately assessed, then policy premiums can be set at the right price for customers, so why aren’t fleets utilising telematics in the same way as the privately owned car sector? Maybe it’s because the price isn’t yet right.
A device can be fitted to a motor vehicle that gathers and records data that ultimately reflects how well the vehicle is being driven. The point of the device, in the privately owned sector, is to provide customers with insurance premiums based on the way they actually drive.
Typically the device will record location, acceleration, breaking, cornering and how long the vehicle is being driven for. While this is obviously useful as an indicator of driving style, these criteria don’t cut the mustard in the commercial sector, where risk management and accountability in the face of an accident is essential.
Taking The Technology Further
As well as using telematics, fleet drivers would do well to install other gadgets that can reduce accident rates and improve driver performance. Special HGV lenses to reduce blind spots are one such example as are on-board cameras.
The problem is that the initial outlay on such equipment may not reap the financial rewards that fleet managers are looking for. It takes a commitment from fleet owners and insurers to ensure that the same devices are fitted as standard in every fleet vehicle, and while this may improve performance immediately the frequency of savings are likely to take time before they are embedded in the price of policies.