Car Tracking Device Software: Can It Lower Your Insurance?
Vehicle Tracking / Friday 13th April
Cars and other vehicles are often expensive to run even if you only have one for private use. So, if managing a fleet, it’s important to control expenses. This includes costs such as fuel consumption, driver hours and maintenance. Fleet managers can often forget that insurance also plays a part in maximising their profit margins, and there are various ways to keep premiums to a minimum. One of these is by installing a car tracking device into each vehicle in the fleet.
What Is a Car Tracking Device?
Vehicle tracking is possible through the power and intelligence of GPS live technology. The Global Positioning System is created from a constellation of 24 satellites orbiting the Earth. Each one of these transmits radio signals which can be received by a GPS tracking device. This is anything from a mobile phone to a satnav. By connecting with several satellites, the tracker measures how long the signals take to reach the receiver, forming an accurate position in real-time. This clever technology has been used to evolve fleet management software like never before with businesses using the data to improve their operations while reducing costs. While many choose to make an initial investment to install the system as well as pay monthly fees with some packages, the ROI they receive is what makes installing the technology so worthwhile.
Cost-cutting benefits include:
- Reducing insurance premiums
- Monitoring the excessive consumption of fuel and addressing behaviours which may be causing this such as harsh braking and long engine idling times
- Saving time with automation of administrative tasks, including the collection of driver hours with tacho integration technology
- Ideal monitoring of vehicle conditions to schedule timely repairs, reducing breakdown costs and limiting business interruptions
- Keeping on top of annual maintenance schedules for your fleet to minimise downtime
- Enhancing the productivity of your fleet with better journey planning, live traffic and reduced journey times
- Increase the security of a vehicle and improve the chances of recovery should it be stolen
- Accurate billing of customers with evidence of pick up and drop off times
- Reducing fraudulent overtime claims and increase the accuracy of reclaiming costs of fuel consumed (where employees are using their own vehicles, for example)
- Enhance mobility within a fleet to improve cost-efficiency, including fleet managers who can supervise easily while on the move
Implementing such processes has been advanced by using hardwired trackers to integrate with other systems in the car such as fuel sensors. Connecting with car aerials has also allowed for wider coverage and real-time tracking so that you never have to spend time trying to trace a driver’s location again. This has also proved valuable in providing a first class customer experience in which they can track a vehicle for themselves. For example, customers can now see when their taxi may be arriving through a vehicle tracking app or even check how many stops away a delivery driver is with their parcel.
How Can a Vehicle Tracking System Reduce Insurance Costs?
So, how and why do insurance companies look favourably upon those who invest in business vehicle tracking for their fleet. One of the largest risks of cars is their ability to be stolen. However, by installing a car tracking device into a vehicle, it not only improves the chances of locating and recovering the vehicle should it be stolen but also act as a deterrent too. This means it lowers the risk for insurers in having to pay out large amounts to replace an entire vehicle. Some brands of tracking device include anti-tamper and unauthorised use software as well as triggering alerts as soon as an engine is started without the use of a key. This will activate the vehicle tracking device to send out a signal to the owner, a monitoring facility or even the police. Geo-fencing can also help with this by forming virtual zones which you want your vehicle to stay within.
Increasing the security of your vehicle by installing a GPS tracker for car and other vehicles will help you find cheaper insurance. However, before investing in any system or new device for your fleet, it’s important to speak with your insurer to see what their policy is, as well as terms and conditions which may affect your choice of tracker.
4 things to check with your insurance provider:
- How does the vehicle tracker need to be installed? An insurer may require professional installation of the device in order to activate discounts on your premium. Professional installation is usually required with hardwired devices, and you can check with the manufacturer if pro-installation comes included in your package. However, if choosing portable devices for your tracking such as plug and play products or those integrated with satnav screens, self-installation is usually easy to do. Therefore, it’s important to check with your insurance provider if this will negate any chance of receiving a discount.
- Do they offer telematics insurance? This involves the insurer providing small tracking devices which build up a history of data about the vehicle’s behaviour, status and movements, including braking, accelerating and swerving. Essentially, it allows insurers to monitor driver behaviour and hopefully reduce premiums. This may be more suitable for those drivers who are using their own cars.
- Which brands do they recognise? Always check with your insurance provider which GPS tracker manufacturers they recognise and trust before investing. If you don’t use devices from a reputable brand, your insurer may not apply discounts.
- What else can help lower your premiums? You may find there are other devices which can help reduce your insurance costs which can be integrated with certain fleet management systems. For example, a car dash cam can decrease premiums considerably, with insurers able to easily establish who’s liable for an accident. You can choose trackers which come with camera technology which also gives lone drivers peace of mind as well as providing managers with visual access to a vehicle if needed.
One of the factors which may also increase insurance premiums is accidents and claims. Many car tracking device UK systems also focus on improving driver safety and the ability of fleet managers to address inappropriate behaviour. This includes speeding, harsh steering and harsh braking. Implementing tracking systems can act as a deterrent to such behaviour, but also gives managers peace of mind they’ll receive alerts or reports if there are actions to be addressed. By educating your driving force about the correct standards to uphold, businesses can implement systems which ensure insurance costs are kept to a minimum.
Find the Best Tracker for Your Fleet
Every company is different. Whether a one-man band or an entire fleet of lorries, fleet management systems can help improve the cost-efficiency of your operations. It’s important to find the best car tracking device for your business, including one which suits your setup and specific vehicles in your fleet.
Unfortunately, with so many models on the market, it can result in companies using much time and resources to locate the right one. It’s not just about finding the cheapest device. Sometimes it’s worth paying more for quality of output, features included and the return on investment it’s likely to provide you with.
What’s the solution?
Here at the Vehicle Tracking Channel (VTC), we do all the hard work for you, narrowing down your options so that you don’t have to waste time doing it yourself.
When you use the VTC, you’ll actually be able to speak to an expert who can take the time to talk you through your choices and how each one can help your business. Each recommendation has been customised to your needs as we’ll take information from you such as the size of your fleet, features you want and the type of vehicles the device will be fitted to. There are some great van trackers on the market, for example. We may also ask you what the trackers will be used for (such as a motorcycle tracker system for a group of couriers) and explain which features will be most suitable for this.
Our specialists understand the tracker industry and the best trackers on the market for each type of business setup. Perhaps you use rental cars and require portable plug and play trackers or maybe you need a hardwired tracker for an advanced system which integrates with other devices and systems within the vehicle. There are many reputable brands out there, but each brings something different to the market. Our experts have the knowledge to recommend manufacturers which fit your specific needs. Top names include Crystal Ball, Teletrac Navman, Verizon Connect (Fleetmatics), TomTom, RAM Tracking and Quartix.
Using a comparison channel such as the VTC makes life simple for those looking to implement fleet management live software. We’ll guide you through the process from start to finish, taking information about your needs and finding the best matches for your business. It’s the most hassle-free way to find the most suitable car tracking device for you.
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