How Installing A GPS Tracker Can Get You A Good Auto Insurance Deal?

Written By Emma Pauline Published on August 28, 2020 Trucking Industry Last Updated August 23, 2023 Edited by

Key Takeaways

•Major insurance and premium determiners
•GPS Tracking solutions as the best option to lower premiums
•Theft Mitigation
•Improved trucker vigilance
•No malicious or private usage of vehicles
•Maintenance alerts
•GPS tracking for truckers
•Role of Matrack

Getting a good auto insurance deal for your commercial vehicle is often plagued with challenges. Insurers believe that commercially used cars and trucks are prone to accidents and damages as they need to spend a considerable amount of time on the roads. Therefore, a lack of indemnities often increases the premium rates as the insurance company expects claims at some point in time.

Why Commercial Auto Insurance is Necessary?

Using vehicles as an integral part of your business requires adequate levels of attention and obviously a security coverage, in case of a mishap. An auto insurance policy is therefore relevant as it can cover a majority of losses and prevent unforeseen ramifications. Moreover, while a private vehicle is sparingly used; commercial trucks and other vehicles need to ply for days together, with the drivers getting minimal rest. Not just that, business-centric vehicles, mostly trucks, often need to travel across the state or even beyond, thereby exposing themselves to several threats on and off the road.

Commercial Insurance: Major Determinants

If you are looking to purchase an insurance policy for your commercial vehicle, you must try to keep the premium rates under control and that too without coverage trade-offs. More often than not, the type and even size of the vehicle can determine the premium rates and the viability of the insurance plan. As a rule of thumb, heavier vehicles like trailers and even trucks used for transporting freight attract higher premiums as they are expected to incur graver damages in accidents. Insurance companies, therefore, charge exorbitant premiums, to cover for the greater risks and expected claims.

Businesses often consider insuring multiple vehicles under the same plan which also amplifies the premium rates. Furthermore, the condition of your commercial vehicle also determines the premium figures. In addition to that mentioned criteria, insurers also take the experience level of the drivers behind the wheel followed by the total distance covered by the vehicle, when it comes to determining coverage-centric premium slabs.

GPS Trackers: The One-Stop Solution for Lowering the Premiums

As mentioned, a majority of aspects that determine premium rates are directly or indirectly related to vehicle safety. Be it adherence to the road safety norms or efficient vehicle monitoring standards, GPS tracking is one feature that can significantly reduce the auto insurance premiums. Put simply, a GPS tracker readily encourages safe driving and allows you to get a sizable discount on the existing insurance costs. Most importantly, this discount comes in handy for implementing advanced tracking solutions for the entire fleet.

Insurance companies believe that GPS technology can reduce the chances of insurance claims. Therefore, to encourage the installation of GPS trackers, a majority of insurers offer substantial rebates on the otherwise higher premiums.

Then again if these reasons aren’t enough to make you immediately opt for a GPS tracking system for your fleet, here are some of the other persuasive validations that might change your mind.

Reduced Chances of Theft

Insurance claims due to vehicle thefts are common, especially when commercial trucks are concerned. GPS tracking technology, however, can mitigate this threat which is extremely encouraging for the concerned insurance company. In case your vehicle gets stolen and an official complaint is lodged, the built-in GPS renders adequate levels of assistance to the concerned authorities. Moreover, GPS trackers are also handy when remote asset management and stolen vehicle recovery is in question. Therefore, a truck installed with a tracker has better chances of being identified, which negates the insurance claims. This is one of the primary reasons why the premium rates are lower as compared to that for vehicles without any form of GPS tracking on them.

Vigilant Driving

There are insurance companies that determine premiums based on the experience and quality of the concerned drivers. GPS trackers ensure that drivers remain vigilant at all times, which in turn minimizes the instances of reckless driving. Drivers who are aware of the monitoring technologies are expected to drive as per the safety standards. Moreover, even if haulers experience health issues during the course of the journey, the company gets notified and automatic brakes are applied to halt the drive and lower the risk of accidents.

As per reports released by Forbes, insured vehicles with pre-installed GPS trackers are 20 percent less prone when it comes to accident involvement

Vehicle insurance premiums are paid periodically and the GPS tracking facility allows insurers to keep a log of the driver trends and other relevant insights related to harsh braking, over speeding, rapid acceleration, and sharper cornering. These facets are taken into account for determining the subsequent premium figures. Finally, GPS trackers also bring in a lot of organizational transparency, especially when fuel and overhead costs are concerned.

Minimal Vehicle Abuse

Exploiting commercial vehicles for personal usage is prevalent, especially when the haulers are driving closer to their homes. If and when the vehicle is overused or abused, the premium rates go up as insurers feel that the number of miles is directly proportional to the chances of claims. A GPS tracker readily combats this threat and ensures that the commercial truck or any vehicle is only used for business.

Once the insurance companies are assured, courtesy of detailed and persistent footage, they are expected to offer premium cuts and other additional discounts.

Maintenance Notifications

In simpler terms, accidents lead to claims, and therefore, the insurance companies vouch for almost anything that prevents mishaps. When it comes to hauling dated vehicles that are already insured, truckers need to install GPS trackers at the earliest to stand a chance of getting a lower premium quote. Commercial vehicles that are prone to mechanical malfunctions are prone to accidents and therefore attract higher premiums.

The likes of brake-centric issues, tire blowouts, and other physical risks can be kept to a minimum if GPS trackers are added into the mix. High-end fleet tracking systems with integrated trailer and asset tracking facilities are capable of sending out real-time notifications, if and when the vehicles require maintenance. The concerned fleet manager is instantly alerted regarding oil changes and requirements related to tire rotations. Therefore, auto insurance firms identify GPS tracking systems as highly resourceful assets that encourage maintenance, thereby offering a hefty price cut on the associated premiums.

GPS Tracking: A Cohesive Solution for the Truckers

While every commercial vehicle, including cars, trailers, and passenger buses can reap the benefits of a GPS tracker, its role in the trucking industry is certainly worth mentioning. However, we would keep this discussion restricted to the insurance-specific realm. Truck drivers, especially during the lockdown period and even in the post-pandemic era are putting in additional hours to make up for the lost time and income. As they often try to cover longer distances, health and vigilance are often compromised, which is immediately notified to the fleet manager.

With restrictions around, drivers get the requisite levels of training when it comes to restraining the behavior and plying as per the regulations. Besides the insurer, even fleet managers worry about the condition of the truck and even the associated freight. More often than not, load rejections dent the financial prosperity of the company in general which then fails to pay the premiums on time, eventually leading towards fines and policy lapses. Therefore, a holistic tracking system is necessary to minimize the existing downtime as drivers can easily be notified of the shortest and safest path to the destination.

As trackers help reveal the INS and OUTS of the truck, it becomes easier to cut down on the costs by controlling the operational overheads. GPS tracking, therefore, takes every aspect of the truck into account and ensures that the vehicle is always in a top-notch condition, something that minimizes the chances of insurance claims.

The Tracking System to Consider!!!

Although several credible companies in the market offer GPS tracking solutions for a standalone truck or the entire fleet, none comes close to Matrack, when customizability and efficiency are concerned. GPS trackers offered by Matrack Inc. are capable of sustaining the harshest possible weather conditions. Besides that, these solutions are great at asset tracking and recovery while ensuring proper feed generation for keeping up the vigilance quotient, which primarily caters to the insurance firms and helps them renegotiate auto premiums.B

With precise and accurate commercial fleet GPS tracking solutions from Matrack Inc., it becomes easier for fleet managers to convince the insurance companies of vehicle safety and driver alertness, thereby getting a hefty rebate on the soaring premium rates sans coverage compromises.